El Salvador Updates 'Outdated' Law to Lift KYC Limits for Purchases from $200 to $25000
From now on, KYC in El Salvador will only apply to payments equal to or greater than $25000.
- "El Salvador continues to build upon our first mover advantage as the leading destination for new capital markets on Bitcoin. We have now updated our KYC regulations and we will soon publish the amendment to the 2005 law related to collection of transaction data," wrote The Bitcoin Office on X.
The issue was first raised by @jonatack who noticed growing scrutiny and constrains on Bitcoin startups operating in the country.
- "Word is that some "bitcoin" startups in El Salvador are happily passing user transaction data to the ES government, while one very good one is resisting," he added.
"Please note that this is an old law from 2005 with outdated limits & requirements. In the next 10 days, however, we will amend this law and the updated standards will go into effect 8 days later," responded The Bitcoin Office on February 27.
- The reform has already been approved in the congress of El Salvador and updated law will be published sometime soon.
#NEW Today the congress of #ElSalvador approved a reform to the taxcode changing the limit to request the buyer documents that support transaction from $200 to $25,000@Bitcoinbeach @stacyherbert https://t.co/hWLNo7bUci
— 🇸🇻Darvin Otero (@aveotero) March 2, 2024
- The Bitcoin Office's Stacy Herbert also added that the second concern listed by @jonatack will also be addressed soon with an amendment to the 2005 law.
