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El Salvador has passed the "Investment Banking Law", allowing licensed banks to conduct encryption asset business.
According to Mars Finance news, Juan Carlos Reyes, chairman of the Salvadoran National Digital Asset Commission (CNAD), confirmed that the newly passed Investment Banking Law will allow licensed investment banks to hold digital assets such as Bitcoin and provide encryption services to accredited investors. The law clearly states that investment banks can apply for a license as a Digital Asset Service Provider (PSAD) and even operate in a pure Bitcoin banking model. The government stated that this move will attract foreign investment and solidify its position as a financial innovation center, but critics point out that the existing encryption policies mainly benefit institutions rather than the general public.