El Salvador Allows Investment Banks to Hold and Provide Bitcoin Services

The Legislative Assembly of El Salvador has passed a law that allows financial institutions with a capital of at least $50 million to obtain investment bank qualifications and apply to provide financial services priced in Bitcoin and digital assets to 'qualified investors' holding at least $250,000 in liquid assets.

The new law allows investment banks to overlay a crypto license category on top of existing banking licenses, thereby legally holding Bitcoin, issuing tokens, and designing transactions linked to crypto assets within the current regulatory framework. This marks a shift in policy focus from encouraging retail users to adopt Bitcoin to attracting institutional capital, as public adoption rates remain low and the government prioritizes securing a $1.4 billion IMF loan.