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Flagship jurisdiction · regulator: CNAD

El Salvador crypto (DASP) licence

A single national licence covering exchange, custody, transfers and token issuance — from a regulator built to say yes to serious crypto businesses.

Licence
Digital Asset Service Provider (DASP), CNAD registry
Timeline
≈3–6 months from a complete application (plus preparation)
Gov. fees
≈US $5,500 registration + ≈US $3,650/year
Capital
US $2,000 minimum share capital
Best for
Exchanges, wallets, custodians, token issuers not targeting US clients
Scope

What the licence covers

El Salvador's Digital Asset Issuance Law (2023) created a dedicated regulator — the Comisión Nacional de Activos Digitales (CNAD) — and a single registration regime for digital asset service providers. One licence, one regulator, one rulebook. The January 2025 rollback of Bitcoin's legal-tender status (part of the IMF deal) did not touch the DASP regime — CNAD keeps registering providers in 2026.

  • Exchange of digital assets — crypto-to-fiat and crypto-to-crypto
  • Trading platforms and derivatives on digital assets
  • Custody, administration and wallet services
  • Public offerings and issuance-related services

Bitcoin-only services fall under a separate BSP registration with the Central Reserve Bank; multi-asset platforms typically need the CNAD track — we scope which applies to you.

Requirements

What CNAD expects from you

Local entitySalvadoran company or registered branch; 100% foreign ownership permitted
CapitalUS $2,000 minimum share capital — nominal by design
KYC/AMLCompliance programme with two certified AML officers, at least one resident in El Salvador and registered with the financial intelligence unit (UIF)
ManagementFit-and-proper directors and shareholders; disclosure of beneficial owners
DocumentsBusiness plan, financial model, security and custody policies, terms of service
PresenceRegistered office in El Salvador; the rest of the team can stay distributed

Exact requirements depend on your activity mix — issuance, exchange and custody are reviewed differently. We scope this in the first call.

Timeline & cost

How long, how much

1

Structure & prepare

Entity formation, documents, compliance pack. Typically the longest phase — quality here decides the review speed.

2

File with CNAD

Application submitted with the full dossier; the regulator reviews and comes back with questions.

3

Registration granted

Entry in the DASP registry — you can operate, open accounts and sign counterparties.

Plan for roughly 3–6 months of CNAD processing from a complete submission, plus 2–4 months of preparation before filing. Government fees are modest: registration of about US $5,500 (15 minimum monthly wages) and an annual fee of about US $3,650. With professional services, the all-in budget stays a fraction of a single US state licence.

Tax & banking

The practical part

Tax treatment

The Digital Asset Issuance Law (Art. 36) exempts regulated digital-asset activities from income tax, capital gains tax and VAT. Withholding tax on dividends to foreign shareholders still applies — we model your effective rate before you commit.

Banking — the real test

Banking is the key practical risk in any emerging jurisdiction. We test account options — local banks, regional banks and EMIs — against your flows before filing, so the licence never outruns the account.

The contrast

Why not just license in the US?

Because there is no single US licence to get. The US route means FinCEN registration plus money transmitter licences in up to 49 states, plus New York's BitLicense — each with its own fees, bonds and 6–18 month reviews. For most non-US-facing models it's the most expensive way to buy a flag you don't need.

Why not the US? — the route explained

Compare all three jurisdictions

Honest fit

Is this the right fit?

El Salvador works when

  • You need to launch fast on a startup budget
  • Your clients are global, not primarily US residents
  • You want one regulator instead of fifty
  • Tax efficiency matters to your model

Look elsewhere when

  • US retail clients are your core market — see the US route
  • Your counterparties require an EU or US flag specifically
  • You can't operate with an emerging-market banking setup
FAQ

El Salvador DASP — common questions

How long does the El Salvador crypto licence take?
Roughly 3–6 months of CNAD processing from a complete submission, plus a few months of preparation — entity setup, compliance documentation and banking groundwork. Preparation quality is the main driver of speed.
How much does a DASP licence cost?
Government fees are about US $5,500 for registration and about US $3,650 per year, with minimum share capital of just US $2,000. With professional services the all-in budget stays a fraction of a single US state money transmitter licence. The comparison report includes a budget for your specific case.
Do I need a local office or local team?
You need a Salvadoran entity with a registered office, and at least one certified AML/compliance officer resident in El Salvador. Ownership can be 100% foreign and the rest of the team can stay distributed; we structure management to satisfy CNAD's fit-and-proper review without relocating your company.
Who is CNAD?
The Comisión Nacional de Activos Digitales — El Salvador's dedicated digital assets regulator, created by the Digital Assets Issuance Law. It maintains the DASP registry and supervises licensed providers.
Can a Salvadoran DASP serve US customers?
Serving US residents triggers US regulatory obligations regardless of where you're licensed — FinCEN registration at minimum, state licences depending on the activity. Most DASP holders geo-fence the US; if the US market is core to you, read the US route page.
What about taxes for licensed providers?
The Digital Asset Issuance Law (Art. 36) exempts regulated digital-asset activities from income tax, capital gains tax and VAT. Dividend withholding for foreign shareholders still applies, so we model the exact effective rate for your structure before you file.
Did the 2025 Bitcoin Law changes affect the DASP regime?
No. The January 2025 amendment made Bitcoin acceptance voluntary as part of El Salvador's IMF programme, but it did not touch the Digital Asset Issuance Law, CNAD or the DASP registry — the licensing framework and its tax exemptions continue to operate.
Next step

Get licensed in El Salvador

Tell us your model and target launch date. We'll confirm the fit, scope the budget and start the structure — or tell you honestly if another jurisdiction serves you better.