El Salvador: technology regulation at a glance

Framework: Digital Assets Issuance Law (LEAD, Decree No. 33/2023, in force since April 2023) administered by the Comisión Nacional de Activos Digitales (CNAD), plus the Bitcoin Law (Decree No. 57/2021, as amended January 2025) with Bitcoin-specific service providers registered by the Banco Central de Reserva (BCR).

El Salvador is unambiguously pro-crypto and operates a dedicated, in-force legal framework: the LEAD Law creates a licensed regime for digital-asset issuers and service providers (DASPs), supervised by CNAD, while a separate Bitcoin Service Provider (BSP) registry sits at the BCR. In January 2025 the government amended the Bitcoin Law under IMF conditionality to remove mandatory acceptance and tax-payment use, so while Bitcoin retains a special legal status, acceptance is now voluntary and the state has wound down the Chivo wallet.

Framework: Law for the Promotion of Artificial Intelligence and Technologies (Decreto No. 234), enacted 26 February 2025, effective 11 March 2025; administered by the National Artificial Intelligence Agency (ANIA), a decentralized body under the Presidency of the Republic

El Salvador became the first Latin American country to enact dedicated AI legislation when the Legislative Assembly passed Decreto No. 234 on 26 February 2025 (Official Gazette No. 43, Vol. 446, 3 March 2025). The law is promotion-oriented, establishing ANIA as the national AI regulator and mandating a risk-assessment framework, a developer registry, intellectual-property protections, and core ethical principles. A companion Robotic Technologies Law, also administered by ANIA, was published in the Official Gazette on 21 July 2025, extending the framework to robotics.

Framework: Ley de Protección de Datos Personales, Decreto Legislativo No. 144 (November 12, 2024; in force November 23, 2024), enforced by the Agencia de Ciberseguridad del Estado (ACE), established by the companion Ley de Ciberseguridad y Seguridad de la Información, Decreto Legislativo No. 143

El Salvador enacted its first comprehensive personal-data protection law (Decreto 144) in November 2024, covering both public and private sector entities that process personal data within or outside national territory. The law is modelled on GDPR-style principles, lawful basis, data minimisation, transparency, accountability, and grants data subjects ARCO-POL rights. Enforcement and supervision are delegated to the newly created State Cybersecurity Agency (ACE).

Framework: Ley de Emisión de Activos Digitales (LEAD, 2023) administered by the Comisión Nacional de Activos Digitales (CNAD); BCR/SSF oversight of traditional payment systems; Investment Banking Law (August 2025); draft Ley para el Fomento de Entidades Fintech y Regulación de Servicios Financieros Digitales (submitted to Legislative Assembly August 2024, not yet enacted)

El Salvador operates a dual licensing regime for digital payments: Digital Asset Service Provider (DASP) licenses issued by the CNAD for crypto- and digital-asset-based payment services, and Bitcoin Service Provider (BSP) registrations overseen by the BCR for Bitcoin-specific operations. Traditional payment institutions are supervised by the BCR and the Superintendencia del Sistema Financiero (SSF). A broader Fintech Law that would explicitly license fiat-based digital payment platforms, digital wallets (with 100% reserve backing in USD at BCR), and crowdfunding was submitted to the Legislative Assembly in August 2024 but remained pending as of early 2026.

Framework: Ley Especial de Migración y Extranjería (LEME), administered by the Dirección General de Migración y Extranjería (DGME); substantively reformed by Decreto Legislativo No. 531 (published Diario Oficial No. 57, Tomo 450, 23 March 2024, in force 31 March 2024)

El Salvador launched a dedicated Digital Nomad Visa in April 2025, granting remote workers an initial 1-year residence permit renewable up to 4 years, contingent on a minimum monthly foreign-sourced income of approximately USD 1,460. El Salvador's territorial tax system means foreign-earned income is not subject to local income tax, and Decreto 531 (2024) cut the mandatory annual physical-presence requirement from nine months down to 90 days.

Framework: Special Law Against Cybercrime (Ley Especial Contra Delitos Informáticos y Conexos, 2016, reformed 2025); Cybersecurity and Information Security Law (Decree, effective 23 Nov 2024); Personal Data Protection Law (Nov 2024); State Cybersecurity Agency (Agencia de Ciberseguridad del Estado, ACE)

El Salvador's online safety regime is fragmented across three instruments: a cybercrime law operative since 2016 (significantly reformed effective July 2025), a Cybersecurity and Information Security Law that established the autonomous State Cybersecurity Agency (ACE, in force 23 November 2024), and a Personal Data Protection Law (November 2024). No comprehensive online-safety or platform-liability framework comparable to the EU Digital Services Act or UK Online Safety Act exists; age-verification mandates for social media and structured content-moderation obligations are absent.

Framework: Ley de Ciberseguridad y Seguridad de la Información (Decreto Legislativo No. 143, November 2024); complemented by Ley para la Protección de Datos Personales (Decreto No. 144, November 2024); administered by the Agencia de Ciberseguridad del Estado (ACE)

On 12 November 2024 El Salvador's Legislative Assembly passed Decreto No. 143, the Cybersecurity and Information Security Law, the first standalone comprehensive cybersecurity statute in Central America, together with a companion personal-data-protection law (Decreto No. 144). Both laws entered into force on 23 November 2024, creating the State Cybersecurity Agency (ACE) as the autonomous national regulator. The regime covers all public and private entities that manage public administration systems or critical national infrastructure, imposing mandatory cybersecurity management systems and a 72-hour breach-notification duty.

Framework: Ley de Inversiones (Legislative Decree 732, 1999); Código de Comercio; Ley de Sociedad por Acciones Simplificadas (Legislative Decree 905, December 2023); supervised by the Centro Nacional de Registros (CNR) and Ministerio de Hacienda

El Salvador permits 100% foreign ownership across virtually all sectors, with no government screening or prohibition of FDI. The 2023 Simplified Joint Stock Company (SAS) law and the online Miempresa portal have reduced formation to as little as three days at minimal cost, making El Salvador one of the more accessible business destinations in Central America. One notable restriction bars foreign nationals from owning micro-enterprises (≤10 employees, annual sales ≤USD 175,930).