CRYPTO LAW PROFILE
El Salvador Bitcoin Law
El Salvador’s Bitcoin Law remains in force, but 2025 reforms made private acceptance voluntary and removed Bitcoin tax-payment authorization.
IDENTIFIERDecreto Legislativo No. 57; amended by No. 199
ENACTED2021-06-08
LAST VERIFIED2026-06-03
SUMMARY
At a glance
Status
In force; narrowed by 2025 reforms; private Bitcoin acceptance is voluntary.
Scope
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Dormancy
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Administrator
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LEGISLATIVE RECORD
Bill details
Bill number—
Session—
Chamber—
Legislative stageEffective
LATEST ACTION—
SPONSOR—
SOURCECSJ / JurisprudenciaDecreto Legislativo No. 57; amended by No. 199Official bill page ↗
EXPLAINER
Overview
El Salvador’s Bitcoin Law, officially the Ley Bitcoin, is the national statute that established a Bitcoin-specific legal framework in El Salvador. Legislative Decree No. 57 was adopted on June 8, 2021, published on June 9, 2021, and entered into force on September 7, 2021. As of June 3, 2026, the law remains in force, but it has been materially narrowed by Legislative Decree No. 199, published on January 30, 2025.
The amended law continues to regulate Bitcoin as curso legal, defined by unlimited discharge power. However, the current wording makes acceptance voluntary and limits acceptance to natural or legal persons with full private participation. The 2025 reform also repealed the provision that had authorized tax contributions in Bitcoin and removed state-backed provisions that previously supported automatic convertibility and transaction alternatives.
Bitcoin status and private acceptance
Article 1, as amended, defines the law’s object as regulating Bitcoin as curso legal, with voluntary acceptance by private natural or legal persons only. Article 7, as amended, states that only private natural or legal persons may accept Bitcoin as payment when it is offered for goods, services, or monetary obligations.
Prices, accounting, and state obligations
Article 3 provides that any price may be converted into Bitcoin. Article 6 keeps the U.S. dollar as the accounting reference currency. Article 12, as amended, provides that the state’s domestic and external monetary obligations must be paid in the currencies in which they were contracted.
Tax treatment
Article 5 states that Bitcoin exchanges are not subject to capital-gains tax. However, Decree No. 199 repealed Article 4, which had provided that tax contributions could be paid in Bitcoin. The amended law should therefore be read carefully with tax, treasury, and IMF-program materials, but this profile does not provide tax advice.
Regulatory framework
Article 11 assigns the Banco Central de Reserva and the Superintendencia del Sistema Financiero to issue regulations within their legal powers. The 2021 implementing regulation created a Bitcoin service provider registry at the central bank and covers provider categories such as custodians, exchanges, payment processors, and wallet operators.
The regulation also addresses conduct standards, AML controls, cybersecurity, recordkeeping, customer-asset safeguards, complaint handling, and supervision by the financial superintendency. The framework should be read with later digital-asset rules and official regulatory updates.
Status and timeline
- June 8, 2021: Legislative Decree No. 57 adopted.
- June 9, 2021: Bitcoin Law published in the Diario Oficial.
- September 7, 2021: Original law entered into force.
- January 29, 2025: Legislative Decree No. 199 adopted.
- January 30, 2025: Reform published in Diario Oficial No. 21, Tome 446.
- April 30, 2025: Reform entered into force 90 days after publication.
Jurisdictional impact
The Bitcoin Law applies nationally in El Salvador. It directly affects private parties that choose to accept Bitcoin, Bitcoin service providers, exchanges, custodians, wallet providers, payment processors, consumers, and financial institutions interacting with Bitcoin service providers. It should be read together with implementing rules, digital-asset legislation, AML/CFT requirements, and later regulatory measures.
Status and timeline
| 2021-06-08 | Decree No. 57 adopted |
| 2021-06-09 | Original law published |
| 2021-09-07 | Original law effective |
| 2025-01-29 | Decree No. 199 adopted |
| 2025-01-30 | Reform published |
| 2025-04-30 | 2025 reform effective |
WHAT IT DOES
Key provisions
Bitcoin as curso legal
Article 1 regulates Bitcoin as curso legal with unlimited discharge power, but only with voluntary private acceptance.
Voluntary private acceptance
Article 7 allows fully private natural or legal persons to accept Bitcoin when offered for goods, services, or monetary obligations.
Tax-payment clause repealed
Decree No. 199 repealed Article 4, which had authorized tax contributions to be paid in Bitcoin.
Capital-gains treatment
Article 5 states that Bitcoin exchanges are not subject to taxes on capital gains.
Regulatory authority
Article 11 assigns BCR and SSF to issue rules within their legal powers.
Bitcoin service providers
The implementing regulation creates a BCR registry and covers custodians, exchanges, payment processors, and wallets.
HISTORY
Status and timeline
Decree No. 57 adopted
The Legislative Assembly adopted the Bitcoin Law.
EnactedSource ↗
Original law published
The law was published in Diario Oficial No. 110, Tome 431.
EnactedSource ↗
Original law effective
The original law entered into force 90 days after publication.
EffectiveSource ↗
Decree No. 199 adopted
The Legislative Assembly adopted reforms to the Bitcoin Law.
EnactedSource ↗
Reform published
Decree No. 199 was published in Diario Oficial No. 21, Tome 446.
EnactedSource ↗
2025 reform effective
The reform entered into force 90 days after publication.
EffectiveSource ↗
COVERAGE
Who it affects
Actors
custodiansfinancial-institutionsconsumersexchangesbitcoin-service-providerswallet-providersmerchants
Asset classes
bitcoin
PRIMARY REFERENCES
Official sources
↗
Consolidated Ley Bitcoin, Decreto No. 57CSJ / Jurisprudencia · Consolidated law text · esOfficial
↗Decreto No. 199, Reformas a la Ley BitcoinCSJ / Jurisprudencia · Amending decree · esOfficial
↗Diario Oficial No. 110, Tome 431Diario Oficial · Official gazette · esOfficial
↗Reglamento de la Ley Bitcoin, Decreto No. 27CSJ / Jurisprudencia · Implementing regulation · esOfficial
↗IMF El Salvador Country Report No. 25/58IMF · Program report · enOfficial
RELATED COVERAGE
Coverage
Editorial note
As of 2026-06-03, this profile uses the amended text following Legislative Decree No. 199. The reform was published on 2025-01-30 and entered into force 90 days later.