El Salvador’s authorities have begun reviewing the bill, aimed at bringing order to the legal framework governing interactions with providers and issuers of virtual asset services.
The regulation covers operations not only with Bitcoin but also with other cryptocurrencies. It also touches on tax policy and provides a legal definition of stablecoins and tokens.
The bill is currently being studied by the Economic Committee of the Legislative Assembly, The Block.
The document envisages creating a registry of companies — they will be subject to a registration procedure and must provide a list of assets. Issuers will have to comply with a number of rules, including disclosure of the jurisdictions in which they operate.
Oversight of registration and operations will be entrusted to the national commission. Lawmakers say the bill will foster the efficient development of the digital asset market and protect buyers’ interests.
In September 2021, the Salvadoran authorities recognised Bitcoin as legal tender. МВФ criticised the decision and recommended stripping the cryptocurrency of that status.
At the end of July 2022, the country’s finance minister Alejandro Zelaya said that the rollout of digital gold expanded access to financial services for a population largely outside the reach of banking services, attracted tourists and investments.
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