El Salvador's new law allows licensed investment banks to engage in cryptocurrency asset business

BlockBeats News, August 10th - Juan Carlos Reyes, Chairman of the Salvadoran Digital Assets Council (CNAD), confirmed that El Salvador has passed the "Investment Banking Law," allowing licensed investment banks to hold digital assets such as Bitcoin and provide crypto services to eligible investors.

The law stipulates that investment banks can apply for a Digital Asset Service Provider (PSAD) license and can even operate in a pure Bitcoin banking model. The government stated that this move will help attract foreign investment and strengthen its position as a financial innovation hub. However, some critics argue that the current crypto policies tend to favor institutions rather than the general public.