Why License in El Salvador
Advantages of Obtaining a
Crypto License in El Salvador
El Salvador has emerged as a leading crypto jurisdiction, striving to rank among the top crypto-friendly countries worldwide. Its appeal lies in its robust regulatory framework and the unique opportunity to make payments with Bitcoin, as it remains the only nation where Bitcoin serves as an official national currency.
The timeline for completing the process ranges from 2.5 months (with efficient and swift collaboration on documentation) to up to 5 months. Our team is ready to provide comprehensive services, including legal support for company formation, obtaining the necessary licenses, opening corporate accounts, and ensuring compliance with the fit-and-proper standards of EMIs and traditional banks.
1. Early Adopter Advantage
El Salvador, as the first Latin American country to establish a regulatory framework for cryptocurrencies, offers companies a chance to be early adopters in a burgeoning market. Securing a crypto license positions businesses as leaders in the nation’s growing crypto industry.
2. 0% Tax Regime
El Salvador provides significant tax benefits for crypto-related activities, including:
• Exemption from taxes on the nominal value and yields of digital assets.
• No capital gains or income tax on the transfer, sale, or other transactions involving digital assets.
• Companies offering digital asset-related services are exempt from taxes such as the Tax on the Transfer of Movable Goods and Provision of Services, Income Tax, and municipal taxes.
• Businesses are also relieved from tax withholding responsibilities related to digital assets.
3. Crypto-Friendly Banking Ecosystem
The country features numerous crypto-friendly banks, offering reliable financial solutions for businesses. These banks facilitate seamless transactions, secure storage, and efficient cross-border operations, creating a supportive environment for crypto companies to thrive.
4. Low Initial Capital Requirements
Starting a crypto business in El Salvador is financially accessible, with a low initial share capital requirement of $2,000. Entrepreneurs can register their company by depositing as little as 5% of this amount, easing market entry.
5. Flexibility in Workforce Structure
Businesses are not required to hire local employees or management, giving them the freedom to structure their teams as they see fit.
6. Global Recognition
A crypto license from El Salvador is internationally recognized, enabling businesses to operate across diverse markets with confidence.
7. Affordable Annual License Fee
The annual state license fee is only $3,650, ensuring a cost-effective operation and allowing businesses to allocate resources more efficiently.
8. Stable Legislative Framework
El Salvador provides a sustainable and predictable legal environment for cryptocurrency businesses. Its regulations are designed to foster long-term growth and stability.
9. Clear Regulatory Compliance
Operating under El Salvador’s regulated framework ensures compliance with know-your-customer (KYC) and anti-money laundering (AML) laws. This regulatory clarity enhances trust and credibility with customers and partners.
10. Opportunities for Government Collaboration
El Salvador actively promotes blockchain and cryptocurrency innovations. Businesses with a crypto license can align with government initiatives, potentially engaging in collaborative projects related to digital payments, financial inclusion, or blockchain-based solutions. These partnerships may lead to joint ventures, research opportunities, or government contracts.
Get Started with your
El Salvador Crypto License
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