The post Crypto Regulations in El-Salvador 2025 : First Country to Use Bitcoin as Legal Tender appeared first on Coinpedia Fintech News
El Salvador made history in 2021 as the first nation to adopt Bitcoin as legal tender. By 2025, the country has shifted toward a more regulated and voluntary framework for cryptocurrency, balancing innovation with international financial obligations and domestic realities.
August 8, 2025- Announcement on Bitcoin Banks
July 30, 2025 – “National Commission of Digital Assets (CNAD) of El Salvador Signs Memorandum with Bolivia”
June 12, 2025 – “El Salvador Accountability Act of 2025” (S. 2058)
April 22, 2025: Discussion on Approaches to Address Issues in Crypto Regulation
March 2025: New Regulatory Framework Comes Into Effect
February 2025: New Amendments Rolled Out
January 2025: Bitcoin Legal Tender Status Revoked
| Date | Event/Update |
| June 2021 | Bitcoin Law announced and passed, making BTC legal tender |
| September 2021 | Bitcoin Law takes effect; Chivo wallet launched |
| 2021–2024 | Continued government promotion, mining initiatives, and international criticism |
| December 2024 | IMF loan deal agreed, requiring rollback of Bitcoin’s legal tender status |
After August 2025, the National Bitcoin Office (ONBTC) split approximately 6,274 BTC (around $678 million at publication time) from one address into 14 fresh addresses. This move aims to reduce its exposure to potential future quantum computing attacks. Each wallet holds up to 500 BTC, a “shard and spread” approach to limit losses if any single address were ever compromised.
To obtain a crypto license in El Salvador, entities are required to appoint a compliance officer and cybersecurity personnel to review the AML/KYC compliance. The licenses are granted by the National Commission of Digital Assets (CNAD).
Now with the new law, financial institutions can become crypto investment banks with a Digital Asset Service Provider (PSAD) license. Only institutions with over $50 million in capital can become an investment bank, while the services are limited to investors with over $250,000 in liquid assets.
El Salvador’s approach to cryptocurrency in 2025 is defined by regulatory maturity and strategic adaptation. While Bitcoin is no longer mandatory as legal tender, the government maintains a crypto-friendly, tax-exempt environment and continues to invest in both Bitcoin holdings and sustainable mining initiatives. The regulatory focus has shifted to compliance, transparency, and international cooperation, positioning El Salvador as a unique hub for digital asset innovation in Latin America.
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