El Salvador has gained worldwide attention for becoming the first country to adopt Bitcoin as legal tender, setting the stage for an innovative regulatory framework that attracts global crypto businesses. The country has developed a licensing system tailored to the needs of companies in the digital asset space, offering clarity, security, and a forward-thinking environment.
Two main licences are available: the Bitcoin Service Provider licence and the Digital Asset Service Provider licence. These cover a wide range of activities, including digital wallets, exchanges, custody services, payment processing, token issuance, and trading. This structure ensures that businesses can operate within a clear legal framework while enjoying the benefits of being based in a jurisdiction committed to blockchain innovation.
Obtaining a licence in El Salvador requires several steps. The process begins with assessing the business model to determine the appropriate licence type. This is followed by a “fit and proper” assessment of management and stakeholders. Next comes company formation, submission of compliance documents such as AML and KYC policies, and cybersecurity protocols. Finally, regulatory authorities review the application before granting approval. The entire process typically takes around three to four months.
One of the strongest incentives to obtain an El Salvador crypto licence lies in its tax advantages. Licensed companies benefit from exemptions on corporate income tax, capital gains, and value-added tax for digital asset transactions. This tax-friendly regime is designed to encourage investment and foster growth, making the country one of the most attractive destinations for digital asset ventures.
Switzerland SRO Membership: Building Global Trust
Switzerland has long been recognised as a global hub for finance, and its approach to digital assets reinforces this reputation. For Switzerland crypto License crypto companies, Switzerland offers the option of joining a Self Regulatory Organisation (SRO). This provides businesses with compliance under the Swiss anti-money laundering framework without requiring direct authorisation from the national regulator.
Membership in an SRO allows companies to engage in a wide range of services. These include payment processing, wallet and custody services, fiat-to-crypto exchanges, token issuance, and other fintech activities. While requirements exist, such as local presence, Swiss compliance officers, and minimum capital thresholds, SRO membership provides a balance between regulatory oversight and operational flexibility.
The process to obtain SRO membership involves setting up a Swiss entity, preparing documentation including business plans and compliance policies, and appointing qualified local representatives. The typical timeline is four to five months, depending on the complexity of the business model and readiness of documentation.
Why These Licences Matter
Both El Salvador and Switzerland present distinct but complementary advantages for crypto businesses. El Salvador offers innovation, tax relief, and access to a fast-growing market in Latin America. Switzerland provides credibility, global trust, and access to European markets.
Licensing is more than just regulatory compliance. It signals professionalism and reliability to investors, partners, and customers. By securing a licence or SRO membership, companies demonstrate their commitment to transparency, strong governance, and long-term sustainability.
Conclusion
Whether a business chooses El Salvador for its favourable tax framework or Switzerland for its credibility and financial stability, both jurisdictions provide opportunities that can transform a crypto venture. The decision ultimately depends on strategic goals, target markets, and desired positioning in the global digital asset ecosystem.
For companies ready to scale and expand, obtaining the right licence is not just a legal necessity but also a powerful step toward growth and global recognition.