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 The 2025 reform also repealed the provision that had authorized tax contributions in Bitcoin and removed state-backed provisions that previously supported automatic convertibility and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.
Key provisions of the El Salvador Bitcoin Law
Bitcoin status and private acceptance
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.
Prices, accounting, and state 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.
Tax treatment
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 However, Decree No. 199 repealed Article 4, which had provided that tax contributions could be paid in Bitcoin.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.
Regulatory framework
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.
Status and timeline
- June 8, 2021: Legislative Decree No. 57 adopted.
- June 9, 2021: Bitcoin Law published in the Diario Oficial.
- September 7, 2021: Original law entered into force.
- January 29, 2025: Legislative Decree No. 199 adopted.
- January 30, 2025: Reform published in Diario Oficial No. 21, Tome 446.
- April 30, 2025: Reform entered into force 90 days after publication.
Jurisdictional impact
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.