Each area has different ways to regulate the crypto industry. El Salvador is a pioneer in legalizing virtual currency as legal tender on par with the US dollar. That is, Bitcoin and the dollar have the same payment power. It suggests that cryptocurrency activities are actively supported at the state level, which contributes to the development of firms provided that they have received an El Salvador crypto license.

How does a permit help organizations develop?

Organizations can actively develop their business through the following positive aspects by obtaining permission for crypto activities.

Pioneer experience

Since it is the first state to introduce a legal framework for digital coins as legal tender, this allows firms to be the first participants in the crypto market in this category.

Taxation allows you to have more profit

If a firm engages in crypto activities, then preferential taxation is applied. That is, income from virtual assets will not be taxed. In addition, capital gains that were received from trading digital coins will also not be taxed. Also, companies engaged in issuing securities and registered as providers of virtual assets will be able to take advantage of the same tax benefits:

• no income tax;
• no tax on the transfer of goods and services provided;
• no municipal taxes.

In addition, companies will be relieved of liability for paying these taxes if such an obligation arises.

Providing access to the virtual asset market

The licensing and acceptance of Bitcoin as legal tender provide an attractive environment for the digital asset market. These aspects allow you to attract potential solid partners. With such a permit, the firm can quickly gain access to the digital coin market and offer its services.

Free orientation in legislation

Since licensed firms operate within the framework of transparent legislation, this will make it easy to navigate the cryptocurrency business and develop effectively. With a permit, the firm guarantees that all legal requirements will be met, including AML and KYC policies. Such compliance will significantly increase the trust of potential partners.

Attracting international partners

Since El Salvador has decided to legalize digital coins and create a regulatory framework, this will attract companies from around the world looking to expand their business. With permission for cryptocurrency activities, firms can enter the asset market and acquire strong business partners.

Government support

Since the authorities have decided to legalize digital coins, they will be interested in developing and promoting the cryptocurrency business. Firms will be able to apply government initiatives to develop this area. Also, the use of blockchain technology is of great importance, which will ensure the reliability and confidentiality of transactions. Government support can lead to joint partnerships on research solutions that will enable more efficient financial activities.

All these aspects will have a very favorable effect on financial activities, helping to attract international partners and increase capital.

Tax policy

If a company is registered with the Registry as a virtual asset provider, it will be able to take advantage of many tax benefits:

• the absence of all types of duties, taxes, and fees, including the assessment of the nominal value and profitability of virtual coins;
• there will be no tax on capital gains and ordinary income that was received in the process of trading or transferring virtual assets;
• there is no tax on the transfer of goods and services and other tax obligations of the asset provider.

In addition, organizations included in the Register will be exempt from taxation liability in cases where this can be applied. Such tax benefits will allow your business to develop effectively and profit more than other jurisdictions.

Conclusion

El Salvador is among the most promising and favorable jurisdictions for obtaining permits. Strong government support and attractive taxation will contribute to active business expansion. Innovative infrastructure and distributed registry technology will allow you to conduct business safely, ensuring the high trust of partners and clients.