Three years after legalising Bitcoin to fold retail users into the crypto ecosystem, El Salvador is creating a separate lane for high-net-worth and institutional investors.
The Legislative Assembly’s newly approved Investment Banking Law allows licensed institutions with at least $50 million in capital to offer Bitcoin and other digital asset services.
But not everyone will get through the door.
Access will be restricted exclusively to so-called “sophisticated investors” — those with at least $250,000 in freely available funds and accredited financial knowledge.
Investment banks that meet the threshold will be authorised to issue bonds, arrange public–private partnerships, and provide or issue digital assets, including Bitcoin.
The goal is to “attract international private capital” and allow “funds and high-net-worth actors to set up in the country or use our entities as regional platforms,” said lawmaker Dania González, adding that the reforms will help mould El Salvador into a specialised financial hub for the region.
Bukele’s power play
The shift comes as President Nayib Bukele consolidates power at home.
Earlier this month, lawmakers approved constitutional changes that extend presidential terms from five to six years and abolish term limits.
It’s a move that could theoretically keep the self-described Bitcoin evangelist in office for decades.
Bukele’s administration has also continued to expand the country’s reported Bitcoin holdings despite agreeing to pause public purchases under a $1.4 billion loan deal with the International Monetary Fund.
In its July Article IV consultation, the International Monetary Fund said the country is complying with the programme’s requirement for “non-accumulation of Bitcoin” by the public sector.
Yet blockchain data from Arkham Intelligence shows the government now controls roughly 6,264 Bitcoin, worth about $739 million at current prices, up from around 6,160 in April.
Some analysts suggest the latest increases may simply reflect coins being shuffled between wallets rather than fresh purchases since the IMF agreement was signed in December.
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at [email protected].
