El Salvador passes law that allows investment banking with bitcoin
With 55 votes in favour, the El Salvador Legislative Assembly approved on August 7 the Investment Banks Act, a regulation designed to attract international private capital. This law includes authorization to operate with bitcoin (BTC) and cryptocurrencies, allowing investment banking entities to act as issuers of digital instruments, cryptoactive-related service providers, and exchange platform operators.
The new legislation is intended exclusively for natural or legal persons with extensive knowledge of investments and a minimum of $250,000 in liquid assets. This profile will allow them access to specialized services and sophisticated financing schemes for large-scale projects.
Among the main functions of these investment banks are the structuring of corporate operations, asset management, financial advice, market analysis, and the design of financial instruments, such as bonds, certificates, and structured products.
However, one of the most prominent features of the regulations is the inclusion of transactions with digital assets within the Salvadoran legal framework. Investment banks may act as issuers and service providers related to bitcoin, stablecoins, gold, and tokenized bonds, always under the supervision of the Central Reserve Bank (BCR) and the Superintendency of the Financial System (SSF).
Congresswoman Dania González stressed that this law will strengthen the country’s institutional architecture by creating a complementary figure to traditional banking, facilitating the financing of strategic projects in infrastructure, energy, technology, telecommunications, and innovation. As he explained, this type of banking allows access to capital through the issuance of shares or bonds in the markets, benefiting both companies and the State.
In the words of the official, another benefit is the strengthening of the financing of the financial system, since the Salvadoran institutional architecture will be expanded with a new, regulated, and supervised figure, which complements the traditional banking we know. Orr her part, Marta Solís, advisor to the Ministry of Economy, said that the regulations aim to provide an agile, transparent, and reliable financial service, which will position El Salvador as a regional financial hub and strengthen its international competitiveness.
In order to operate legally, those who wish to set up investment banking entities must obtain authorization from the Superintendency of the Financial System (SSF), while the Central Reserve Bank (BCR), through its Standards Committee, will define the technical and legal requirements. Both bodies will share regulatory and supervisory responsibilities.
Thus, the Central Reserve Bank (BCR) will establish rules related to capital, liquidity, risk management, and transactions with digital assets, while the Superintendency of the Financial System (SSF) will be responsible for authorizing, monitoring, sanctioning, and ensuring the transparency of these institutions.
In addition, every two years, both institutions will review the minimum financial criteria for sophisticated investors and investment banks, ensuring that the system adapts to changing market conditions.
In mid-2024, as reported by CryptoNoticias, the El Salvador Executive presented to the Legislative Assembly a proposal to amend the Banking Law to update the country’s financial regulations. With this, it laid the foundations for the Investment Banks Act adopted in 2025, which introduces entities specializing in advanced financial services and digital assets.
The reform proposed the creation of private investment banks, entities authorized to offer services in both dollars and bitcoin. In addition, it set out precise criteria for classifying clients as sophisticated investors, detailing that they should have advanced knowledge and significant funds to access these services.
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