Because of the IMF Most Bitcoin businesses in El Salvador Vanish from the market
El Salvador’s big bet on Bitcoin has hit a snag: nearly all the crypto firms it registered aren’t actually playing by the rules that the International Monetary Fund demanded. Nearly 90% of Bitcoin service providers registered in El Salvador are not operating, according to a recent report by El Mundo, which cited data from the Central Reserve Bank, showing that out of 181 companies officially registered to offer Bitcoin services in the country, 161 are marked as “non-operating.”
The IMF did not formally restrict El Salvador’s use of bitcoin at a specific point in time. Instead, they reached a staff-level agreement in December 2024, which included conditions for a $1.4 billion loan that required El Salvador to modify its Bitcoin Law. This modification made Bitcoin’s use optional for businesses and removed its status as legal tender, effectively rolling back some of the country’s previous Bitcoin policies. The IMF’s restrictions were primarily focused on limiting public sector acquisitions of Bitcoin, dissolving the Fidebitcoin trust fund, and ending operations of the Chivo wallet
The US continues to be the largest financial contributor to the IMF. As such, it has the most voting power (at 17%) and can effectively veto any motion. The U.S. Secretary of the Treasury serves as the U.S. Governor to the International Monetary Fund (IMF). The U.S. Executive Director of the IMF is one of 24 directors who vote on the IMF’s strategic direction. As of February 2025, Shannon Ding, a US Treasury official, was acting as the U.S. representative on the IMF board. The current Managing Director of the IMF is Kristalina Georgieva.
El Mundo added that at least 22 of the inactive providers may have failed to meet the regulatory standards outlined in Article 4 of the Bitcoin Law Regulation, which requires crypto businesses to operate with “high standards of integrity and honesty.” Providers are supposed to have anti-money laundering programs, clear records of assets and liabilities, and cybersecurity systems adapted to the nature of the services offered.
It’s unclear how many others are behind on compliance, or whether enforcement is underway.
The numbers paint a much different picture of the current state of Bitcoin in El Salvador. In 2021, the country became the first country in the world to make Bitcoin legal tender. It was a move that drew global headlines and crypto industry praise, but also concern from traditional financial institutions. President Nayib Bukele, a self-described “CEO of El Salvador,” argued that the policy would attract tech investment, lower remittance costs, and bring banking services to the unbanked.
Beyond El Salvador, since hitting a new all-time high in late January, Bitcoin has slipped into heavy correction, losing over 22% of its market price. The majority of the price loss has been linked to international trade tariff crises, which have forced investors to seek relief in less risky assets.
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