El Salvador’s Bitcoin Sector Fails: 89% of Registered Firms Not Operational

YEREVAN (CoinChapter.com) — Only 20 of the 181 Bitcoin service providers registered with El Salvador’s Central Reserve Bank are currently operational. This accounts for just 11% of all listed firms. The remaining 161 are labeled non-operational, based on official data.

Local outlet El Mundo cited the Central Reserve Bank, confirming that these firms failed to comply with the country’s Bitcoin Law. The law outlines strict obligations. Providers must monitor financial activity, report accurate asset data, and implement cybersecurity programs.

The data also shows that at least 22 companies ignored most of these basic requirements. El Salvador’s Bitcoin service providers are legally bound to meet these criteria to remain in business.

Bitcoin Law Enforces AML and Cybersecurity Rules

El Salvador passed the Bitcoin Law in 2021. It made Bitcoin legal tender, alongside the U.S. dollar. The law requires firms to maintain Anti-Money Laundering (AML) programs and keep detailed financial records.

Firms must also develop cybersecurity systems based on the services they offer. According to the central bank, failing any of these conditions leads to non-operational status.

Despite the requirements, some firms have remained active. These include Chivo Wallet, a government-supported app, and private companies like Crypto Trading & Investment and Fintech Américas. These firms met the legal standards and continue to operate.

IMF Deal Limits Bitcoin in El Salvador

In early 2025, El Salvador signed a $1.4 billion loan deal with the International Monetary Fund (IMF). Under the agreement, the country promised to reduce its public sector involvement with Bitcoin.

As part of the terms, public institutions will no longer use Bitcoin actively. Taxes will only be accepted in U.S. dollars. On March 3, the IMF asked El Salvador to stop public Bitcoin purchases.

President Nayib Bukele later said that the government would continue buying Bitcoin. His statement conflicted with the IMF agreement, raising concerns about the country’s compliance.

Rollback Law Targeting Bitcoin Set for April 30

According to John Dennehy, a Bitcoin educator based in El Salvador, a rollback law is already scheduled to take effect on April 30. He shared this during an X Space chat with Cointelegraph.

The law will reportedly reduce Bitcoin’s role in the public sector. Dennehy did not reveal further details. However, his statement supports reports that El Salvador may scale back its Bitcoin legal tender policy.

The Chivo Wallet, which was launched by the government, remains operational. It complies with AML rules, financial reporting, and cybersecurity measures under the Bitcoin Law.

Only two other providers — Crypto Trading & Investment and Fintech Américas — have passed all the legal requirements. Their records are listed in the Central Reserve Bank database.

The other 89% of registered Bitcoin service providers have not issued public statements. Their current operations remain suspended.