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El Salvador has made a bold move by adopting Bitcoin as legal tender, and it’s now the first country to make such a significant step towards cryptocurrency integration. The crypto regulation landscape in the country has undergone significant changes since then.
As of August 8, 2025, the National Assembly has passed the Investment Banking Law, allowing large financial institutions to provide services denominated in Bitcoin and other digital assets to qualified investors. However, these institutions must have a minimum capital requirement of $50 million to apply for crypto licenses.
The Central Bank of El Salvador (BCR) continues to play a crucial role in overseeing cryptocurrency activities, enforcing anti-money laundering (AML) and counter-terrorism financing (CTF) standards, and registering Bitcoin service providers.
While the Bitcoin Law took effect in September 2021, the country has undergone significant changes since then. As of January 2025, the government phased out its official Bitcoin wallet, Chivo, and revoked the requirement to accept Bitcoin as a form of payment.
The regulatory focus has shifted from mandated usage to voluntary adoption and compliance. This development aims to provide a more stable environment for digital assets, ensuring international cooperation and financial integrity.
Government officials emphasize building a transparent, compliant, and internationally connected crypto ecosystem. This stance allows the country to maintain its position as a unique hub for digital asset innovation in Latin America, despite the policy rollback.
In the realm of mining, El Salvador has taken a bold step by promoting Bitcoin mining using geothermal energy from volcanoes. This innovative approach positions it as a pioneer in sustainable crypto mining. The government-backed LaGeo company operates the mining facilities powered by 100% clean and emission-free volcanic energy, with an impressive capacity of up to 95 MW.
Further reinforcing its position as a crypto-friendly nation, El Salvador has also announced plans to launch the Blockstream Mining Note (BMN2) in collaboration with Bitfinex Securities.
Source: coinpedia.org
