BSP/DASP in El Salvador

Quick facts

Regulator / authority

The National Commission of Digital Assets (CNAD) starting in 2024 with the Central Reserve Bank's (BCR) involvement

Coverage

Bitcoin infrastructure, payment services and processing, custodial wallets, BTC trading, RWA tokenization, token placement, digital asset exchange

Best for

Businesses offering Bitcoin-only services (such as wallets/custody, BTC exchange, and BTC payments) require a BSP (Bitcoin Service Provider) license, whereas businesses offering services involving other digital assets/crypto beyond Bitcoin (such as exchanges, custody, token issuance, and platforms) require a DASP license

Local presence

Required (El Salvador legal entity)

Substance level

Medium (it is required to have a local MLRO (Money Laundering Reporting Officer), a resident of El Salvador who is in charge of preventing money laundering. Necessity to have a local tax number and address for a legal entity)

Banking friendliness

Medium

Who this is for

Best fit

BSP is typically the better option if your business model is designed around Bitcoin as a payment instrument and you do not plan to support other crypto-assets
DASP is typically the better option if you want flexibility and scalability, with the ability to expand into multiple digital assets, new token ecosystems, and institutional digital asset services
Your business model focuses on crypto exchange, brokerage, or OTC trading (crypto-to-crypto or crypto-to-fiat)

You plan to offer custodial wallet services or hold virtual assets on behalf of clients
You want to operate a regulated crypto platform without launching a full EU MiCA structure at an early stage
You serve international retail or professional clients (outside sanctioned or high-risk jurisdictions)

What you can do (scope)

Bitcoin exchange
Custodial Bitcoin wallets
Bitcoin payment services & processing
Bitcoin infrastructure services
Digital asset exchange (non-Bitcoin)
Custodial services
RWA tokenization
Token placement
Operating platforms such as crypto wallets and exchanges

Requirements overview

Company & presence

A limited liability company should be registered in El Salvador. Local staff members are not required but recommended. Fiscal address should be local. Appointment of a Salvadoran-based representative to act as the official point of contact before the Central Reserve Bank of El Salvador (BCR), in compliance with regulatory requirements applicable to Bitcoin Service Providers. This service ensures proper communication with the BCR throughout the licensing and operational phases.

Key persons / governance

2 shareholders, 1 local MLRO, and 1 local Salvadoran-based representative

Capital / safeguarding / bonds

Minimum capital: 2,000 USD

AML/CTF baseline expectations

Business model documentation, AML/CTF Compliance Manual, Risk Management Matrix, list of risk factors, client onboarding Procedure, Procedure for the Application of Enhanced Due Diligence, Transaction Monitoring Requirements, Suspicious Activity Internal Reporting Template, Data Processing Register, Annual Training Plan

Reporting / audits

Monthly tax returns (even if null). BSP: You must stay registered in the BCR Bitcoin Service Provider Registry (RPSBTC) and keep registry information up to date while remaining AML/CFT compliant under the supervision framework described for BSPs. DASP: You are expected to submit reports to CNAD as part of ongoing supervision.

Process (end-to-end steps)

Step 1: Eligibility & scope mapping

Analysis of whether your business plans are suitable with El Salvadorian laws, check of preferred names, and gathering of KYC documents of potential shareholders

Step 2: Entity setup / structuring

After getting notarized and apostilled original documents from shareholders, it will be the registration of the LLC

Step 3: Licensing process

In parallel with company registration, the following procedures are carried out: preparation of licensing documents and compliance checks required under El Salvador's regulatory framework

Step 4: Submission to CNAD & onboarding for bank accounts

Submission of the license application to the CNAD, analysis and selection of suitable banks/EMIs based on risk appetite and AML policies

Step 5: Getting tax numbers

After incorporation, the company must be registered with the following authorities: Hacienda (tax authority), the Salvadoran Social Security Institute, and the Ministry of Labor. Within 15 days from the date of incorporation, the company must also obtain its RNC (Número de Registro del Contribuyente) and NIT (Número de Identificación Tributaria)

Step 6: Go-live readiness

Operational implementation (compliance & IT tools) and go-live

What's included in our support

Registration of the LLC
Liaising with the regulator
Corporate documents (deed of incorporation, tax ID, ID of the legal representative or attorney)
Preparation of a business plan (a document of up to 10 pages describing the business plan to be implemented in El Salvador, including the business line, the countries in which it operates, the type of clients it will serve, the products and services offered, and key suppliers)
Preparation of AML Manual, complementary policies, selection, and appointment of COs
Methodology to determine the inherent risk, qualify the management, and determine the residual risk of the entity (risk matrix)
Methodology for rating clients according to their risk profile based on their particular characteristics
Policy providing operational guidelines for conducting due diligence on clients or counterparties based on standard, enhanced, and simplified measures
Digital Asset transaction limits policy
Procedure, including a flowchart and step-by-step narrative, for identifying unusual transactions
Training policy and training plan that includes the education of all staff and certifications of compliance officers in matters of AML/FT/FPADM
Finding a Compliance Officer

FAQ

A Bitcoin Service Provider (BSP) is authorised to provide Bitcoin-related services such as exchange, payments, and wallets involving BTC.

A Digital Asset Service Provider (DASP) may provide services related to digital assets beyond Bitcoin, such as exchanges, custody, transfers, and platforms.

No. BSP/DASP is not a banking license and does not allow deposit-taking or interest on client funds.

Yes, but the MLRO must be a resident of El Salvador and approved as qualified.

No. CNAD expects a real, working platform (or at least a production-ready system) with compliance, security, and operational controls.

Yes, but you must also comply with foreign laws where clients are located.

No. BSP/DASP does not passport to the EU, US, Canada, or Australia.

Yes. CNAD may suspend or revoke BSP/DASP status for AML breaches, misrepresentation, or operating outside scope.

Ready made

BSP/DASP - El Salvador·From EUR 17,000

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BSP (Bitcoin Service Provider) / DASP (Digital Asset Service Provider) in El Salvador