Crypto Law Profile
El Salvador’s Bitcoin Law remains in force, but 2025 reforms made private acceptance voluntary and removed Bitcoin tax-payment authorization.
El Salvador’s Bitcoin Law, officially the Ley Bitcoin, is the national statute that established a Bitcoin-specific legal framework in El Salvador. Legislative Decree No. 57 was adopted on June 8, 2021, published on June 9, 2021, and entered into force on September 7, 2021. As of June 3, 2026, the law remains in force, but it has been materially narrowed by Legislative Decree No. 199, published on January 30, 2025.
The amended law continues to regulate Bitcoin as curso legal, defined by unlimited discharge power. However, the current wording makes acceptance voluntary and limits acceptance to natural or legal persons with full private participation. The 2025 reform also repealed the provision that had authorized tax contributions in Bitcoin and removed state-backed provisions that previously supported automatic convertibility and transaction alternatives.
Article 1, as amended, defines the law’s object as regulating Bitcoin as curso legal, with voluntary acceptance by private natural or legal persons only. Article 7, as amended, states that only private natural or legal persons may accept Bitcoin as payment when it is offered for goods, services, or monetary obligations.
Article 3 provides that any price may be converted into Bitcoin. Article 6 keeps the U.S. dollar as the accounting reference currency. Article 12, as amended, provides that the state’s domestic and external monetary obligations must be paid in the currencies in which they were contracted.
Article 5 states that Bitcoin exchanges are not subject to capital-gains tax. However, Decree No. 199 repealed Article 4, which had provided that tax contributions could be paid in Bitcoin. The amended law should therefore be read carefully with tax, treasury, and IMF-program materials, but this profile does not provide tax advice.
Article 11 assigns the Banco Central de Reserva and the Superintendencia del Sistema Financiero to issue regulations within their legal powers. The 2021 implementing regulation created a Bitcoin service provider registry at the central bank and covers provider categories such as custodians, exchanges, payment processors, and wallet operators.
The regulation also addresses conduct standards, AML controls, cybersecurity, recordkeeping, customer-asset safeguards, complaint handling, and supervision by the financial superintendency. The framework should be read with later digital-asset rules and official regulatory updates.
The Bitcoin Law applies nationally in El Salvador. It directly affects private parties that choose to accept Bitcoin, Bitcoin service providers, exchanges, custodians, wallet providers, payment processors, consumers, and financial institutions interacting with Bitcoin service providers. It should be read together with implementing rules, digital-asset legislation, AML/CFT requirements, and later regulatory measures.
Article 1 regulates Bitcoin as curso legal with unlimited discharge power, but only with voluntary private acceptance.
Article 7 allows fully private natural or legal persons to accept Bitcoin when offered for goods, services, or monetary obligations.
Decree No. 199 repealed Article 4, which had authorized tax contributions to be paid in Bitcoin.
Article 5 states that Bitcoin exchanges are not subject to taxes on capital gains.
Article 11 assigns BCR and SSF to issue rules within their legal powers.
The implementing regulation creates a BCR registry and covers custodians, exchanges, payment processors, and wallets.
The Legislative Assembly adopted the Bitcoin Law.
The law was published in Diario Oficial No. 110, Tome 431.
The original law entered into force 90 days after publication.
The Legislative Assembly adopted reforms to the Bitcoin Law.
Decree No. 199 was published in Diario Oficial No. 21, Tome 446.
The reform entered into force 90 days after publication.
Bitcoin service providers, Consumers, Custodians, Exchanges, Financial institutions, Merchants, Wallet providers
Bitcoin
As of 2026-06-03, this profile uses the amended text following Legislative Decree No. 199. The reform was published on 2025-01-30 and entered into force 90 days later.
