El Salvador’s Crypto Regulation: From Legal Tender to Regulatory Framework in 2025

In 2021, El Salvador made history by becoming the first country to adopt Bitcoin as legal tender. However, by 2025, a new regulatory framework has been implemented to balance innovation with international financial obligations and domestic realities. This transition sees El Salvador moving towards a more controlled and voluntary environment for cryptocurrency, where Bitcoin use is no longer mandatory but supported through regulations and tax incentives.