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2w ago

El Salvador Approves Law to Create Regulated Bitcoin Investment Banks

The new framework mandates banks hold at least $50 million in capital to serve accredited investors under central reserve bank and financial superintendency oversight.

bitcoin
El Salvador banks can now hold Bitcoin
Photo: Avishek Das/
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Overview

  • El Salvador’s Legislative Assembly approved the Investment Banking Law allowing a new class of private banks to hold Bitcoin and provide crypto services to accredited investors.
  • The law sets a $50 million minimum share capital requirement and limits clients to “sophisticated investors” with at least $250,000 in liquid assets.
  • Licensed banks may seek Digital Asset Service Provider status to operate entirely in Bitcoin and U.S. dollars, offering deposits, loans and corporate finance.
  • The Central Reserve Bank will regulate capital, liquidity and digital asset operations while the Superintendency of the Financial System enforces compliance and investor protections.
  • The reform is designed to attract global private capital and position El Salvador as a cryptocurrency finance hub, building on MOUs with Pakistan and Bolivia.