El Salvador’s Technology, Tourism, and Investment Commission has taken a decisive step toward modernizing the country’s financial system. They ruled in favor of the Investment Bank Law, an initiative that seeks to attract sophisticated capital and position the Central American nation as a key investment destination. This legislation would create a specialized legal framework for entities that offer high-value services to investors.
The new law is designed for so-called Sophisticated Investors, a select group of individuals and companies with extensive financial knowledge. These investors must have at least US$250,000 in liquid assets. The regulation seeks to offer them a transparent, reliable, and flexible environment for their operations, thus contributing to El Salvador’s economic development.

The regulation of these entities will be the responsibility of two key institutions: the Banco Central de Reserva (BCR) and Superintendencia del Sistema Financiero (SSF). The BCR will be responsible for establishing the technical and legal regulations for the operation of investment banks. The SSF will be the direct supervisor, responsible for authorizing their creation, overseeing their operations, and sanctioning any violations of the law.
Marta Solís, advisor to the Ministry of Economy, explained that the initiative is essential to modernizing the system and offering differentiated services. She emphasized that these entities will be able to design complex financing schemes, such as bonds, for infrastructure, energy, or urban development projects. This will allow for greater operational and dynamic performance in the salvadoran economy.
Representative Edgardo Mulato supported the proposal, noting that it will accelerate the country’s commercial, industrial, and technological dynamics. According to Mulato, the law fills a gap in the current financial system, which, despite having banks and cooperatives, lacks specific regulation for investment banking. This initiative opens the door to a new era of development.
One of the most innovative features of this law is the inclusion of operations with Bitcoin and digital assets. Investment banking entities will be able to operate as service providers, issuers, and service providers of Bitcoin. This consolidates El Salvador’s vision of being a leader in the adoption of cutting-edge financial technologies, creating a regulated framework for these operations.

The regulation seeks to strike a balance between operating flexibility and rigorous oversight to protect investors. The BCR and the SSF, will work together to update the minimum financial requirements every two years. This approach ensures that the law remains relevant and effective in a constantly evolving financial market.
