El Salvador’s Bitcoin Ambitions Falter: Only 11% of Registered Crypto Firms Are Operational
Strict Compliance Rules Leave Majority of Bitcoin Service Providers Inactive
San Salvador — April 15, 2025: Three years after El Salvador made global headlines by becoming the first country to adopt Bitcoin as legal tender, a recent report has revealed a startling slowdown: only 11% of registered Bitcoin service providers in the country are currently operational, according to data from the nation’s Central Reserve Bank.
Out of 181 Bitcoin firms officially registered, just 20 are actively operating, with the remaining 161 listed as non-operational for failing to comply with the country’s strict Bitcoin Law.
El Salvador’s Bitcoin Business Ecosystem Shrinks
According to El Mundo, a local media outlet, the 89% majority of registered Bitcoin providers have not met the legal obligations required to maintain active status. These obligations include:
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A robust Anti-Money Laundering (AML) program
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Accurate financial records reflecting assets, liabilities, and equity
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A customized cybersecurity system based on the nature of their operations
Compliance, Not Currency, Is the Challenge
While Bitcoin’s legal status has often made headlines, the complex regulatory framework behind the scenes appears to be a major stumbling block. These rules, part of the Bitcoin Law passed in 2021, are designed to ensure transparency and protect the country’s financial ecosystem — but for many providers, they’ve proven to be a tall order.
The Few That Made the Cut
Despite the compliance challenges, a handful of firms have succeeded in aligning with government standards. These include:
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Chivo Wallet, the government-backed app
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Crypto Trading & Investment
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Fintech Américas
These companies continue to operate under El Salvador’s crypto regime and serve as examples of how regulation and innovation can coexist — though they remain in the minority.
🇸🇻 A Nation’s Bold Experiment with Bitcoin
In September 2021, El Salvador made history when it became the first nation in the world to adopt Bitcoin as legal tender, placing it alongside the US dollar. The decision was spearheaded by President Nayib Bukele, who viewed the cryptocurrency as a tool for financial inclusion and economic transformation.
But in 2024, El Salvador signed a $1.4 billion loan deal with the International Monetary Fund (IMF), which came with strings attached: taxes must be paid in USD, and public institutions were told to scale back Bitcoin usage.
Policy in Flux: Bitcoin Status Under Scrutiny
While Bukele insists the government will continue purchasing Bitcoin, the IMF’s directives have sparked speculation over whether El Salvador might reverse or limit Bitcoin’s legal tender status.
Activist and educator John Dennehy, based in El Salvador, told Cointelegraph in an X Space discussion that a rollback law is expected to take effect on April 30, potentially altering Bitcoin’s role in the public sector.
What This Means for the Crypto Community
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El Salvador’s pioneering crypto status remains intact — for now
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Regulatory compliance is the main hurdle for most firms, not public support or interest
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The future of Bitcoin in El Salvador will depend heavily on how the government navigates international pressure versus its own bold ambitions
Key Takeaways
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Only 11% of El Salvador’s Bitcoin service providers are operational
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89% failed to meet legal requirements under the Bitcoin Law
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IMF deal pressures El Salvador to reduce Bitcoin usage in the public sector
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A possible rollback of Bitcoin’s legal tender status is being discussed
