VASP license in El Salvador

El Salvador

El Salvador regulates crypto-asset businesses through the PSAD — Proveedor de Servicios de Activos Digitales (Digital Asset Service Provider / DASP, the VASP equivalent) regime created under the Digital Assets Issuance Law (LEAD). Any natural or legal person whose ordinary…

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Jurisdiction	El Salvador
License type	VASP license
Regulator	Comisión Nacional de Activos Digitales (CNAD)

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Requirements

Before applying for PSAD/DASP registration, a company must first be legally incorporated in El Salvador. Companies are registered with the Centro Nacional de Registros (CNR) — Registro de Comercio, the national registry that administers the Commercial Registry.

Salvadoran commercial law (Código de Comercio) offers several legal forms, including the Sociedad Anónima (S.A.), branches of foreign companies, and free-zone companies, but the Sociedad de Responsabilidad Limitada (S. de R.L.) — the closest local equivalent to a standard limited liability company (LLC) — is the recommended default vehicle for licensing purposes, being the structure most commonly used by small/medium enterprises and foreign-owned subsidiaries in El Salvador.

Incorporation is known to proceed by public deed (escritura pública) executed before a notary, followed by registration with the CNR. For banking, companies commonly work with major local banks such as Banco Agrícola, Banco Cuscatlán, or Banco Promerica.

El Salvador has built a dedicated legal and regulatory framework specifically for digital assets — the Digital Assets Issuance Law (LEAD) — with a specialised regulator, CNAD, overseeing both Bitcoin Service Providers (BSP) and Digital Asset Service Providers (DASP). Operating as a digital asset service provider without CNAD approval is illegal and subject to penalties under the LEAD.

Key confirmed requirements and features:

Legal basis: Digital Assets Issuance Law (LEAD), Article 19 (definition of DASP/PSAD), Article 20 (definitive registration requirements), Articles 2 and 4 (territorial and material competence), Article 36 (tax benefits), and the RPSAD regulation (Articles 7 and 17–35 governing documentation and process).
Registration fee: an initial registration fee of $5,475, payable within 10 days of a favourable definitive-registration notification.
Tax benefits: from the notification of the definitive registration number, the PSAD enjoys the tax benefits established under Article 36 of the LEAD.
Supervisory coordination: once registered, CNAD notifies the Financial Investigation Unit (UIF) of the new Digital Asset Service Provider.
Documentation: the definitive registration stage requires submission of documentation in both digital and physical format directly at CNAD's offices.

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Comisión Nacional de Activos Digitales (CNAD)

National Commission on Digital Assets; regulates Bitcoin Service Providers (BSP) and Digital Asset Service Providers (DASP) under the Digital Assets Issuance Law (LEAD, 2023), overseeing registration (RPSBTC, RPSAD), AML/KYC compliance, minimum capital requirements, and reporting; also administers the LEAD framework for blockchain-based asset issuance including tokenized real estate, hospitality-infrastructure and debt instruments, with associated tax benefits https://cnad.gob.sv/

Overview

El Salvador regulates crypto-asset businesses through the PSAD — Proveedor de Servicios de Activos Digitales (Digital Asset Service Provider / DASP, the VASP equivalent) regime created under the Digital Assets Issuance Law (LEAD). Any natural or legal person whose ordinary business involves providing one or more digital asset services — whether domiciled in El Salvador or simply marketing such services to Salvadoran clients — falls under this registration requirement, which is administered by the Comisión Nacional de Activos Digitales (CNAD).

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Licensing Process

Engraved gold medallion of official documents with the El Salvador skyline

Step 1

Incorporate the local entity — register a Sociedad de Responsabilidad Limitada (S. de R.L.) with the Centro Nacional de Registros (CNR).

Engraved gold medallion of a document being filed with the El Salvador skyline

Step 2

Pre-registration with CNAD — submit a pre-registration form on CNAD's official website describing the applicant and the intended operating area; CNAD conducts an initial evaluation and may request further information before issuing a 'no objection' (with the requirements and process for the desired operating area) or an 'objection'.

Engraved gold medallion of an ornate certificate with the El Salvador skyline

Step 3

Prepare and submit the definitive registration file — compile documentation satisfying Article 20 of the LEAD and Articles 7 and 17–35 of the RPSAD, and file it in both digital and physical form at CNAD's offices.

Engraved gold medallion of an appointment ledger with the El Salvador skyline

Step 4

CNAD evaluation — CNAD has a maximum of 20 business days to issue a favourable or unfavourable resolution, or to notify that the application is incomplete (giving 10 business days to complete missing information/documentation). If unfavourable, the applicant may resubmit its registration request.

Engraved gold medallion of a bank ledger with the El Salvador skyline

Step 5

Pay the registration fee — upon a favourable resolution, pay the initial registration fee of $5,475 within 10 days of notification.

Step 6

Certificate and authorization — CNAD issues the registration certificate and authorization to operate as a Digital Asset Service Provider; CNAD then notifies the Financial Investigation Unit (UIF) of the registration.

Estimated total timeline (CNAD stages only): approximately 30 business days, combining the 20-business-day CNAD evaluation period and the 10-day post-approval fee payment window. This figure does not include the company-registration stage or the pre-registration stage, whose durations are not stated in the available sources.

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Frequently Asked Questions

What is the official name of El Salvador's crypto license?

Locally it is called PSAD (Proveedor de Servicios de Activos Digitales), or DASP (Digital Asset Service Provider) in English — the equivalent of what is internationally known as a VASP license.

Which regulator issues the PSAD/DASP registration?

The Comisión Nacional de Activos Digitales (CNAD), under the Digital Assets Issuance Law (LEAD).

How much does registration cost?

A confirmed initial registration fee of $5,475 is payable within 10 days of a favourable definitive-registration notification.

How long does CNAD take to decide on an application?

CNAD has a maximum of 20 business days to evaluate a definitive registration application, with an additional 10 business days granted to complete an incomplete filing if requested.

What happens if CNAD issues an unfavourable resolution?

The applicant may resubmit its registration request.

Are there tax benefits to registering as a PSAD?

Yes — from the notification of the definitive registration number, the PSAD/Certifier enjoys the tax benefits established under Article 36 of the LEAD.

What company form is recommended for a PSAD applicant?

The Sociedad de Responsabilidad Limitada (S. de R.L.), the Salvadoran equivalent of an LLC, is the recommended default vehicle, registered with the Centro Nacional de Registros (CNR).