El Salvador has emerged as one of the most forward-thinking jurisdictions for digital asset companies. As the first country to recognize Bitcoin as legal tender, it offers a rare combination: regulatory clarity, fiscal incentives, and a clear path to licensure under its Digital Asset Service Provider (DASP) framework.

What is the DASP License?

The DASP license, issued by the Comisión Nacional de Activos Digitales (CNAD), legally authorizes companies to operate a wide range of crypto-related services. This includes:

• Cryptocurrency exchanges

• Custodial wallet services

• Token issuance and Initial Coin Offerings (ICOs)

• Payment solutions using digital assets

• Crypto brokerage operations

Key Benefits

1. Full Tax Exemption
Registered DASPs benefit from zero capital gains tax, no corporate income tax on digital asset revenues, and exemption from VAT — a rare advantage in
any jurisdiction.

2. Territorial Taxation
Only locally-sourced income is taxed. Revenue from international clients remains fully exempt, making this model ideal for globally focused firms.

3. Clear Regulatory Structure
The CNAD and Financial Investigation Unit (FIU) oversee compliance with FATF-aligned AML and KYC standards, ensuring long-term legitimacy and trust.

Basic Requirements

To apply, you’ll need:

• At least two shareholders (can be foreign individuals or entities)

• A local legal representative or director

• Minimum share capital of USD 2,000 (USD 100 paid-in)

• A registered office in El Salvador

• Three-year business plan, cybersecurity protocols, and AML/KYC policies

• Appointment of two AML officers (at least one local if handling high-risk operations)

Process & Timelines

The licensing process includes document submission to the CNAD, regulatory review, and eventual registration with the FIU. Companies must also comply with Travel Rule reporting standards and maintain regular audits.

Why Now?

The cost of entry is low, the setup process is streamlined, and the business environment is built to support digital finance innovation — not obstruct it.

At Mielo Group, we offer turnkey DASP licensing support in El Salvador — from incorporation to full compliance documentation.

Ready to expand your crypto business with legal clarity and tax efficiency?

Let’s discuss how El Salvador fits your roadmap.