New Law in Favor of Bitcoin Approved in El Salvador

El Salvador's Parliament has approved a new Investment Banks Law that will allow investment banks to hold Bitcoin on their balance sheets and offer cryptocurrency services exclusively to professional investors. The law, drafted by the Ministry of Economy, sets strict entry criteria for investment banks, distinguishing them from traditional commercial banks. Accordingly, to operate as an investment bank, they must have at least $50 million in registered capital and $250,000 in free funds. Related News: Tom Lee, Who Is Said to Be Behind the Ethereum Rally, Reveals His Latest Predictions About ETH Investment banks will be able to design comprehensive financing models such as bond issuances and public-private partnerships, manage corporate investments, and only deal with “sophisticated investors.” These investors must be able to assess financial risks, document their investment experience, and have at least $250,000 in free assets. Under the law, investment banks will be authorized to operate and provide services by the Central Bank of El Salvador. The ministry confirmed that some investors plan to take advantage of this new framework, but their names are being kept confidential. *This is not investment advice. Continue Reading: New Law in Favor of Bitcoin Approved in El Salvador