Only 20 out of 181 Bitcoin service providers registered in the Central Salvador Bank, and the rest does not meet the country’s requirements in accordance with Bitcoin law.
El Mundo outlet media quoted Data from the Central Bank of Salvador, showing that 11% of service providers are working. According to the central bank database, the rest of the suppliers are classified as inoperable.
The data showed that at least 22 inoperable suppliers did not meet most of the requirements of the Bitcoins law in the country that order suppliers to implement strict supervision over their financial systems.
Most Bitcoin Salvador service providers are inoperable
Bitcoin law in El Salvador requires from the providers to counteract money laundering (AML), keeping documentation that accurately reflects the company’s assets, obligations and own capital, and have a cyber security program adapted depending on the nature of its services.
The data showed that 89% of registered suppliers did not meet some of those obligations to be classified as operational.
Despite this, several companies met legal criteria, including the Chivo and company portfolio supported by the state, including cryptographic trade and investments, and FinTech Américas.
Related: Cathie Wood to start a public education program AI Salvador
Bitcoin El Salvadora experiment
In 2021, El Salvador became the first country that accepted Bitcoin as a legal tender along with an American dollar. This movement has made an integral part of the Bitcoins to the economic strategy of President Salvador Nayib Bukele.
However, the country of Central America has recently signed a contract with the International Monetary Fund (IMF) for a loan worth $ 1.4 billion in exchange for withdrawing some of its activities related to bitcoins. According to the contract, taxes will be paid in American dollars, and public institutions will limit the apply of Bitcoin.
On March 3, the IMF asked the country to stop shopping in the public sector. Despite this, Bukele said that the government would continue to buy Bitcoin, apparently denying its MFW agreement.
The MFW agreement prompted speculation about whether the country would cancel the status of bitcoin as a legal tender. John Denneha, a Bitcoin activist and teacher from El Salvador, said in space X with Cointelegraph that the Act on withdrawal changing Bitcoin legal status enters into force on April 30.
https://www.youtube.com/watch?v=abn8nvgdw34
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