Alessia Genoves
Collaborator
The Legislative Assembly of El Salvador approved, during the Ordinary Plenary Session No. 23, the reforms to the Digital Assets Law, originally enacted on June 27, 2023. These modifications seek to strengthen the regulatory framework in the country regarding digital assets and expand the powers of the supervisory entities.
Until August 2024, the Bitcoin Fund Management Agency (ABB) announced an investment of $383 million 256 thousand 701 dollars, exceeding the $150 million established by the Bitcoin Fund Trust (Fidebitcoin) approved in 2021.
Reforms
One of the most significant modifications is found in Article 1, which now expands the scope of the law to explicitly include bitcoin service providers. The new text establishes: “The purpose of this Law is to establish the legal framework that grants legal certainty to transfer operations of any title of digital assets that are used in the issuance of public and private offers carried out in the territory of El Salvador; as well as regulate the requirements and obligations of issuers, digital asset service providers, bitcoin service providers and other participants that operate in the digital asset offering process, with the aim of promoting the efficient development of the digital asset market. and protect the interests of the acquirers.”
Article 2 was also amended to explicitly include bitcoin service providers in the scope of the law. In addition, an important clarification was added: “When this Law relates to digital asset service providers, it will be understood that reference is also made to bitcoin service providers, unless the latter are expressly excluded.”
At the same time, it repeals articles of the original law. One of the most significant derogations is the elimination of literal b) of article 4. In the original version of the law, this literal established that digital assets did not constitute legal or forced currency. It also repeals Article 5, has expanded the definition of “digital asset service provider” to explicitly include those who offer bitcoin-related services.
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