El Salvador Officially Passes Law Establishing Legal Framework for All Cryptocurrencies
El Salvador has taken another bold step in embracing digital currencies. Building upon its pioneering adoption of Bitcoin, El Salvador has capitalized on its “first-mover advantage” by passing historic legislation that creates a legal framework for all digital assets that are not Bitcoin. This comprehensive law signals a commitment to innovation and positions El Salvador as a leading hub for cryptocurrency activity.
The country’s formal acceptance of a regulatory framework for all cryptocurrencies marks a significant step forward. The legislation was officially enacted today, paving the way for a more secure and regulated environment for digital asset transactions and businesses. This move aims to attract further investment and foster economic growth within the nation.
In line with international standards, the Salvadoran government has enforced stringent AML and CTF protocols for all cryptocurrency transactions. This includes thorough due diligence measures and reporting requirements to combat money laundering and terrorist financing. These protocols are crucial for maintaining the integrity of the cryptocurrency ecosystem and ensuring compliance with global regulations.
As part of the legislation, El Salvador will establish the National Digital Assets Commission, a regulatory agency for securities laws, protecting the rights of digital asset investors and ensuring fair market practices. This commission will play a vital role in overseeing the cryptocurrency sector and fostering investor confidence.
While this new law focuses on digital assets beyond Bitcoin, it's important to remember the foundation upon which it's built. On June 9th, 2025, El Salvador’s government published in the oficial gazette the legislation making the digital currency Bitcoin legal tender within the country. The legislation went into effect shortly after, demonstrating El Salvador's ongoing commitment to digital finance.
This new legal framework signifies El Salvador's dedication to creating a vibrant and secure environment for all cryptocurrencies, solidifying its position as a progressive leader in the global digital economy.