The post El Salvador passes law to allow investment banks to offer Bitcoin and digital asset services appeared on BitcoinEthereumNews.com.

Key Takeaways El Salvador’s new law allows investment banks to offer Bitcoin and digital asset services to sophisticated investors with at least $250,000. Investment banks can become digital asset service providers and issuers, operating separately from commercial banks. El Salvador’s Legislative Assembly has approved a sweeping Investment Banking Law that will create a new class of financial institutions serving only high-net-worth and institutional clients, according to a recent press release. El Salvador’s legislature introduced the measure last year in a bid to establish a private investment bank able to handle Bitcoin transactions, with plans to diversify funding sources for investors and allow deposits, lending, and wider financial services in BTC and USD. Backed by the Ministry of Economy, the measure sets out a regulatory framework for investment banks offering services such as asset management, financial advisory, corporate transaction structuring, structured financing, and market analysis. Investment banks must maintain a minimum share capital of $50 million and operate separately from commercial banks. These institutions can request authorization to become digital asset service providers, digital asset issuers, and Bitcoin service providers. Lawmakers said the move is aimed at attracting international private capital, financial groups, and wealthy individuals to use El Salvador as a base for regional operations. The new law, sponsored by the Ministry of Economy, limits clients to sophisticated investors, defined as individuals or entities with extensive market experience, the capacity to shoulder complex financial risks, and a minimum of $250,000 in liquid assets, which can be Bitcoin, treasury bonds, tokenized products, gold, or cash. The framework permits investment banks to conduct various operations, such as bond issuance, loan granting, foreign currency transactions, and complementary services. The new banks will be regulated by the Central Reserve Bank (BCR), which will set standards for capital, liquidity, risk management, and digital asset operations.…

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Filed under: News - @ August 10, 2025 11:29 am