CNAD

The National Commission for Digital Assets (CNAD) is the dedicated regulatory body for digital assets in El Salvador. It establishes and enforces regulations, grants licenses, and oversees the registry of Digital Assets Issuances, Stablecoin Issuances, Issuers, DASP, and Certifiers. CNAD ensures that all regulated entities remain compliant with the law, protecting consumers from fraudulent activities while promoting innovation in the digital asset sector. Additionally, CNAD collaborates with national and international regulators to strengthen the regulatory framework. Operating without CNAD's approval is illegal and subject to penalties under the Digital Assets Issuance Law.

Regulations

Regulations are developed and enforced by the CNAD. They set the requirements for all actors in the digital asset ecosystem, ensuring the highest standards in various operational aspects, including:

Ethics,
Risk Management,
KYC and AML/CFT/CFP,
Cybersecurity,
Consumer Protection and Privacy,
Operations.

DASP

Digital Asset Service Providers (DASP) offer a broad range of services within the digital asset ecosystem, requiring registration with the CNAD. DASPs must demonstrate expertise and qualifications to deliver these services effectively. They may provide some or all of the following services:

Digital asset exchanges,
Digital asset wallets,
Risk and pricing evaluations,
Issuance platforms,
Structuring, administration, and promotion of digital assets,
Custody services,
Transfers and order execution for third parties.

DASPs manage the entire lifecycle of digital assets, ensuring comprehensive support for issuers and investors.

Issuers

Issuers are organizations responsible for creating and issuing digital assets into the market. They are committed to the characteristics of the digital assets they issue and must uphold their obligations. Issuers can conduct private or public issuances of digital assets or stablecoins, offering shares, debt, or other products through digital assets. They must comply with all regulatory requirements under the oversight of CNAD and are responsible for choosing where to list their issuances, ensuring transparency and high standards for secure, compliant investment opportunities.

Certificators

Certifiers are responsible for conducting comprehensive ongoing analyses of the financial, legal, compliance, technical, and administrative aspects of public digital asset offerings. They ensure that issuers meet their formal and substantive obligations by issuing a Certifier's Report for each public issuance, assessing both viability and compliance. Additionally, Certifiers perform periodic reviews to ensure continuous adherence to regulations and the terms outlined in the Relevant Information Documents. Registered with CNAD, Certifiers play a key role in maintaining regulatory standards, offering assurance to regulators, investors, and the broader digital asset ecosystem.

Issuances

Digital Assets Public Issuances: These are offerings of digital assets aimed at a global public audience, subject to strict documentation and oversight. Issuers prepare a Relevant Information Document (RID), detailing participants, asset descriptions, mechanics, technology, risk analysis, and more. This document serves as a reference for investors. Certifiers review the RID to assess the viability and compliance of each issuance.

Stablecoins Public Issuances: In addition to standard public issuance requirements, stablecoin issuances must meet additional standards regarding the quality of underlying assets, reporting, and tokenomics.

Digital Assets Private Issuances: These issuances are accessible only to a limited number of qualified investors.