El Salvador is a small country in Central America, but it has already managed to attract the attention of many players in the crypto market. The fact is that for more than 4 years, not only the USD but also Bitcoin is considered the official settlement coin here. This is the only state where crypto-currency is recognized at the national level.
The active development of cryptocurrencies in El Salvador is supported by local governments. Various tax benefits are provided for companies in this industry. But to get them, you need to apply for a crypto license in El Salvador. Conveying it is not very difficult, but you need to understand the specifics of the local institutions.
Benefits of accepting El Salvador`s crypto-license
Achieving a crypto license in El Salvador in 2023 will provide your corporation with many advantages that you have not thought about before. First of all, in this country, you can use crypto-currency as a real payment instrument. Such freedom of action is not available in any other country in the world.
In addition, representatives of corporations that have such a permission, highlight the following advantages of the execution of such a document:
- working in an attractive market with high growth potential;
- virtually no taxation on operations with cryptocurrencies;
- working with cryptocurrency not only in the B2B but also in the B2C sphere;
- simple and clear rules of the game on the market;
- possibility to enter other markets;
- possibility to cooperate with state enterprises.
Such advantages are not offered in all markets today. Therefore, toiling under El Salvador`s crypto-license is an excellent solution that will help you to actively develop in this area.
Cryptocurrency-license approach
To process a crypto-license, the applicant corporation needs to undergo El Salvador crypto authorization with local officials. There are 3 general steps to pass the authorization:
- submission of docs;
- registering a legal entity;
- unfurling a corporate-account.
After that, the license can be obtained. In general, this approach can take up to 3 months.
The first stage of collecting documents and their examination by the regulator will take no more than 2 weeks. Among the documentation, it is essential to furnish the name of the legal-entity, data on co-owners and management (including their residence addresses and powers of attorney), and a business-plan for the development of the corporation.
The second stage is the longest and takes up to 5 months. During this time the corporation registration will be completed, corporate and license docs will be prepared and an app for a crypto-license will be submitted.
In the third stage, bank accounts are drawn up in 2 months, the docs essential for the start of work are provided and preparatory approaches for the launch of the business begin.
Prerequisites for the applicant-company
To operate in the El Salvador Cryptocurrency market, your application must comply with local legal requirements. Therefore, all applicant companies commit to:
- complete the corporate registration processes with the relevant-entities, including the national commission for digital-assets;
- include a minimum of 2 persons or legal-entities as co-owners;
- provide residency and citizenship docs for all executives and co-owners;
- provide a business plan outlining the steps to develop a crypto-business through the established company;
- describe the organizational structure of the corporation, including positions and info about each worker who manages internal workflows;
- operate according to standards for digital data storage and processing;
- file financial statements with info on the ownership of the assets of each co-owner and the conditioning of the registered corporation;
- furnish data on user and investor data protection tools;
- assist and enable regulatory controls in collecting the necessary information and reporting;
- establish monetary crime detection units.
These prerequisites are not extraordinary for the cryptosphere. But if a corporation fails to comply with at least one of them, it is unlikely to qualify for a license to operate.
Who can help with the crypto-license approach
Representatives of companies can try to collect a package of documents on their own and get this authorization. But we recommend that you consult our experts first. Each of our employees has applied for a crypto license several times to the regulatory controls of El Salvador. Therefore, they all know the prerequisites of the regulator and will help you to form the right package of docs that will allow you to quickly obtain a license without making edits.
While your competitors will be redoing the documents, with our help you will already enter the market and be able to earn money. In this interchange you need to work quickly, so contact our staff for preliminary consultation in any convenient way for you.
What is a cryptocurrency-license in El Salvador?
It is an authorization document without which it is impossible to conduct shiftings in the field of crypto-currencies in the territory of this condition.
How do I get a cryptocurrency-license in El Salvador?
It is necessary to collect a package of documents and submit it to the supervisory authority to consider your application. If all the docs are correct and the organization meets the essentials of the controller, it will be able to apply for a license.