New regulations permit BTC holdings, securities issuance, and services for accredited investors
El Salvador has passed its Investment Banking Law, opening the door for regulated Bitcoin investment banks to operate in the country. The legislation, approved on Thursday, creates a distinct legal framework for investment banks, separating them from commercial banks and granting them broader powers in the digital asset sector.
Under the new rules, investment banks will be able to hold Bitcoin (BTC) and other cryptocurrencies on their balance sheets. They can also underwrite companies, issue securities, and provide services to “sophisticated” investors — similar to accredited investors in the United States.
Juan Carlos Reyes, president of El Salvador’s Commission of Digital Assets (CNAD), told Cointelegraph:
“With a Digital Asset Service Provider (PSAD) license, a bank could choose to operate entirely as a Bitcoin bank.”
The law is designed to attract foreign capital and strengthen El Salvador’s position as an emerging global finance hub. Since adopting Bitcoin as legal tender in 2021, the country has actively pursued partnerships with international firms in blockchain, mining, and financial technology.
Proponents argue that the new framework will boost institutional adoption, enabling global investment banks to enter the Salvadoran market with regulatory clarity. Critics, however, warn that the benefits may disproportionately favor large corporations and the government rather than the average citizen.
International Cooperation on Bitcoin Policy
In parallel, President Nayib Bukele met with Bilal Bin Saqib, Pakistan’s state minister of crypto and blockchain, to discuss nation-level Bitcoin adoption strategies and energy policies for crypto mining.
“The cooperation is essentially based on how emerging economies under IMF programs can leverage technology for national growth,” Bin Saqib said.
With Bitcoin trading at $117,313, El Salvador’s push for institutional participation could further cement its role as a pioneer in national-level crypto adoption, despite ongoing debates over its social and economic impact.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.