El Salvador’s Legislative Assembly has approved a new Investment Bank Law, paving the way for licensed banks to hold Bitcoin as part of their assets.
These institutions will also be able to offer cryptocurrency services, but only to a specific group of professional investors known as “sophisticated investors.”
The Ministry of Economy, which introduced the bill, said the measure is aimed at attracting large-scale capital and enabling advanced financing tools. Unlike regular commercial banks, these entities will focus on complex corporate deals, asset management, and financial advisory rather than everyday savings or loan services.
The law clearly separates investment banks from traditional banks, which will remain under the Banking Law. Only the Central Reserve Bank (BCR) can grant licenses, and applicants must prove that all clients meet strict investor requirements.
That includes substantial market knowledge, the ability to evaluate and handle risk, and at least $250,000 in unrestricted funds.
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To operate, an investment bank must have a minimum of $50 million in registered capital. The rules also require banks to follow strict procedures to verify client eligibility. The BCR will oversee and confirm these accreditations.
Once licensed, investment banks will have a wide scope of activities. They can issue bonds, manage large financing projects, trade in foreign currencies, and provide guarantees. They may also apply to become digital asset service providers, including Bitcoin-related services, as long as these are offered only to sophisticated investors.
The Public Prosecutor’s Office noted that there are already interested investors waiting to take advantage of the new framework. Names remain confidential to protect business dealings.
Dania González, a pro-government legislator, called the move a step toward making El Salvador a more competitive financial hub. She said the law will help direct capital into infrastructure, technology, energy, and innovation projects.
González explained that investment banks will not compete with traditional lenders. Instead, they will assist clients in raising money through stock or bond sales, arranging company acquisitions, and managing large investment portfolios.
She believes this framework will encourage high-net-worth individuals and investment funds to set up operations in El Salvador. Officials expect the reform to deepen the country’s digital asset markets, improve its international standing, and increase confidence in its financial system.
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