(Cointelegraph) The Central Bank of El Salvador published draft regulations on bitcoin-related services, classifying BTC as a legal tender.
The Central Bank, in the two drafts released on August 17, acknowledged BTC as a legal tender as per a legislated law that will come into effect on September 7.
The guidelines require financial entities to make a detailed application to the Central Bank before offering BTC.
It requires that the bank or financial institutions should conduct a Know-your-Customer verification before the offering.
The Central Bank regulations ordered the establishment of two-way bitcoin-to-dollar convertibility and allowed banks to charge a fee.
Financial institutions applying for a permit should warn their customers that BTC is a volatile currency as guided by Article 29 of the second draft.
BTC being held by banks and businesses must be secured and be held with a custodian.
BTCUSD is up +0.26%.
