El Salvador’s New Investment Banking Law: What Matters for a Professional Audience

El Salvador has introduced a groundbreaking Investment Banking Law aimed at establishing a robust, institutional framework for digital asset banking. This move solidifies the country’s ambition to become a global hub for Bitcoin-based financial services, following its 2021 Bitcoin legal tender initiative and 2023 Digital Asset Issuance Law.

Key Highlights of the Law

• Eligibility: High-Net-Worth Only

The law restricts access to “sophisticated investors”—those holding at least USD 250,000 in liquid assets, including Bitcoin, tokenized products, gold, cash, and government securities. Retail investors are excluded to reduce risk exposure and ensure regulatory oversight.

• Bitcoin Investment Banks

Licensed investment banks—separate from traditional commercial banks—can now operate entirely in Bitcoin, provided they also hold a Digital Asset Service Provider (DASP) licence under El Salvador’s 2023 legislation.

• Regulatory Oversight

The system splits responsibilities:

BCR (Central Reserve Bank) supervises capital adequacy, liquidity, and risk management.

SSF (Superintendency of the Financial System) oversees compliance, transparency, and investor protection.

• Minimum Capital Requirement

Each investment bank must maintain at least USD 50 million in paid-up capital—a high threshold aimed at ensuring financial soundness.

• Implementation Timeline

Technical regulations, licensing processes, prudential ratios, and AML/CFT guidelines will be released within the next six months.

Strategic Impact

This marks a strategic shift from symbolic adoption of Bitcoin to a regulated institutional crypto-banking model. The move is designed to attract asset managers, family offices, and crypto investment funds by offering a regulated, crypto-native banking ecosystem.

By separating these digital asset-focused banks from the commercial banking sector, El Salvador aims to protect its traditional financial system while enabling Bitcoin-native financial innovation.

Sources:

GLI — El Salvador’s new banking law to target high-net-worth crypto investors (11 Aug 2025): https://www.globallegalinsights.com/news/el-salvadors-new-banking-law-to-target-high-net-worth-crypto-investors/ 

Asamblea Legislativa — Ley de Bancos de Inversión impulsará servicios financieros especializados: https://www.asamblea.gob.sv/node/13649 

Diario El Mundo — Aprobada nueva Ley de bancos de inversión… (7 Aug 2025): https://www.diario.elmundo.sv/politica/aprobada-nueva-ley-de-bancos-para-inversionistas-sofisticados-en-el-salvador 

Bloomberg Línea — El Salvador autoriza banca de inversión con criptoactivos (Aug 2025): https://www.bloomberglinea.com/latinoamerica/el-salvador/el-salvador-autoriza-banca-de-inversion-con-criptoactivos-bitcoin-oro-tokenizado-y-mas/ 

Cointelegraph — Regulator: Bitcoin investment banks are coming to El Salvador (Aug 2025): https://cointelegraph.com/news/bitcoin-investment-banks-coming-el-salvador