El Salvador’s assembly approved a new law that will let large financial institutions apply for a license to offer financial services denominated in Bitcoin and other digital assets to “sophisticated investors.”
The law allows financial institutions with at least $50 million in capital to qualify as investment banks, which are regulated separately from typical commercial banks. Those investment banks can then apply for various licenses to offer crypto-related financial instruments to investors with more than $250,000 worth of liquid assets, which can include BTC.
El Salvador’s crypto license categories — allowing firms to register as a bitcoin service provider, digital asset service provider, or digital asset issuer — were established with prior legislation, but the new law allows investment banks to layer these licenses on top of their existing bank license. In practice, it lets well-capitalized institutions hold bitcoin, issue tokens, and structure crypto-linked deals within the current licensing regime rather than inventing a new one.
“The institutional architecture of the Salvadoran financial system will be expanded as a new, but regulated and supervised entity, complementary to the traditional banking system we are all familiar with,” representative Dania González said in a press release. The law was backed by El Salvador’s Ministry of Economy.
From retail adoption to institutional investment
The move underscores a larger shift in focus away from individual retail investors and toward larger, institutional capital. Though El Salvador made it mandatory for businesses to accept bitcoin for payment in 2021, the country walked back the regulation and other bitcoin-related efforts by the public sector in early 2025 in order to secure a $1.4 billion loan facility from the IMF.
Despite the initial push, analysts found low rates of bitcoin adoption by El Salvador’s citizens, with only a reported 1% of remittances involving crypto assets and only 2 in 10 Salvadorans saying they’ve adopted cryptocurrency.
Though the Bitcoin Office, overseen by President Nayib Bukele, continues to claim it’s buying 1 BTC per day, El Salvador’s central bank president and minister of finance told the IMF in July that the country hasn’t purchased bitcoin since the loan agreement was signed. The IMF’s report said the apparent purchases of bitcoin actually reflect accumulation from various government wallets, which had already purchased the bitcoin, into its central “reserve” wallet.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Trade Crypto On Coinhub Exchange
Trade Crypto On Coinhub Exchange
Stay ahead of the market by turning news insights into trading opportunities. With Coinhub Exchange, you can seamlessly buy, sell, and manage your digital assets, all in one secure platform. Take advantage of real-time market insights, deep liquidity, and fast execution for your favorite cryptocurrencies. Don’t just read about it — trade crypto now!
Disclaimer
The content of this article shown by Coinhub News, powered by The Block, is for informational purposes only and should not be construed as financial, legal, tax, or investment advice. Coinhub News and its affiliates are not a licensed financial advisor, legal advisor, broker, or tax advisor, and ... should not be considered as professional advice or a recommendation to engage in any specific investment, legal decision, or financial transaction. Cryptocurrency markets are highly speculative and volatile. Readers should perform their own independent research and consult with a qualified professional before making any financial or legal decisions. The opinions expressed in this article are those of the author and do not necessarily represent the views or opinions of the Company of its affiliates. Additionally, the Company does not make any representations or warranties regarding the accuracy, timeliness, reliability, or completeness of any information in this article. By accessing this content, you acknowledge that any reliance on the information contained in this article is solely at your own risk. The Company is not responsible for any financial losses, legal disputes, or other damages that may arise from reliance on this content or from any investment or legal decisions based on the information provided. Investing in cryptocurrencies involves substantial risks, including the risk of losing your entire investment, and you should carefully consider whether it is appropriate for your circumstances.
Read more
