11-8-2025 – El Salvador’s Legislative Assembly approved a new law on August 7, 2025, enabling regulated financial institutions to offer Bitcoin-related financial services, marking a shift from retail to institutional crypto adoption. The legislation, first reported by The Block, allows institutions with over $50 million in capital to register as investment banks and apply for licenses to provide crypto products to investors with at least $250,000 in liquid assets.
The law builds on El Salvador’s 2021 Bitcoin Law, which mandated Bitcoin as legal tender but saw limited public uptake, with only 1% of remittances and 20% of citizens using crypto, per analyst reports. Facing pressure from a $1.4 billion IMF loan agreement, the government scaled back public-sector Bitcoin purchases and made acceptance optional for businesses in January 2025.
This new framework targets sophisticated investors, allowing investment banks to hold Bitcoin, issue tokens, and structure crypto-linked deals under existing regulations. The move reflects a strategic pivot to attract institutional capital, supported by the Ministry of Economy and representative Dania González, who emphasized regulated expansion of the financial system. Despite IMF restrictions, El Salvador’s Bitcoin Office claims to hold 6,181 BTC, valued at over $650 million, signaling continued commitment to crypto reserves.
