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El Salvador’s Legislative Assembly has passed a new law enabling licensed investment banks to hold Bitcoin (BTC) on their balance sheets and provide cryptocurrency-related services to professional investors. The move creates a dedicated regulatory framework for investment banks, further advancing the country’s pro-Bitcoin strategy.
New Regulatory Framework for Investment Banks
Les comparto las aprobaciones de la Sesión #Plenaria68✍️. pic.twitter.com/p3OsLkAxpP
— Suecy Callejas Estrada (@suecallejas) August 8, 2025
The new Investment Banking Law clearly distinguishes investment banks from traditional commercial banks.
Under the law, investment banks will not engage in retail banking services. Instead, they will focus on corporate financial services, such as:
- Asset management
- Corporate fundraising
- Market analysis
Entry requirements are stringent:
- Minimum registered capital: $50 million
- Licensing authority: Central Reserve Bank (BCR)
- For crypto-related services, banks must also obtain a Digital Asset Service Provider (PSAD) license
This framework opens the door for establishing Bitcoin-focused financial institutions operating under official regulation.
Targeting High-Net-Worth and Institutional Investors
The new services will be available exclusively to qualified investors — individuals and entities capable of assessing financial risk and holding at least $250,000 in liquid assets.
Qualifying assets include:
- Bitcoin and other cryptocurrencies
- Government bonds
- Tokenized commodities
- Gold
- Fiat currencies
Part of El Salvador’s National Bitcoin Strategy
Since adopting Bitcoin as legal tender in 2021, El Salvador has pursued an aggressive digital asset policy aimed at transforming the nation into an international crypto-financial hub.
The government currently holds 6,262 BTC — worth approximately $730 million — as part of its reserves. Officials say the new law will attract global institutional capital, despite criticism that it favors governments and large corporations.
Industry analysts view the legislation as a shift from individual Bitcoin use to institutional-level crypto financial services, potentially positioning El Salvador as a key player in the global cryptocurrency investment market.
