Regulatory Alerts2025-07-01 | 11626Official Communication - Linework
The National Commission of Digital Assets (CNAD) of El Salvador officially announced that Linework, S.A. de C.V. has not been authorized as a Digital Asset Service Provider (PSAD). The regulator cited critical deficiencies in the company's application, including the promotion of services without meeting legal requirements, failure to comply with Anti-Money Laundering standards, and inadequate cybersecurity and business model proposals. The CNAD urges the public to verify the legitimacy of digital asset providers exclusively through the official Public Registry before engaging in any transactions.
OFFICIAL COMMUNICATION NATIONAL COMMISSION OF DIGITAL ASSETS REGARDING OPERATIONS IN THE COUNTRY BY THE COMPANY LINEWORK
The National Commission of Digital Assets, in compliance with its legal powers and in its capacity as the governing authority in the matter of digital assets, in accordance with the Digital Asset Issuance Law, informs the general public:
That the entity named Linework, S.A. de C.V., has not been authorized as a PSAD (Digital Asset Service Provider) in El Salvador.
The foregoing follows the technical and legal analysis conducted on the application request submitted to the CNAD by the aforementioned entity, in which deficiencies were identified, among which the following stand out:
● The institution has promoted services without having met the legal and regulatory requirements established by the CNAD, such as, for example, presenting a business plan that includes El Salvador. This plan lacked clear justification regarding the business scope, jurisdiction of operations, and services provided, among other aspects.
● Non-compliance with national and international standards regarding the prevention of risks related to Money Laundering, Terrorism Financing, and Proliferation of Weapons of Mass Destruction (AML/CFT/CPF) necessary to operate in this market.
● The presented business model did not meet the technological and cybersecurity requirements, as well as the absence of main characteristics of the digital assets with which it intended to operate.
Given that the pillars of service under which the CNAD operates are proactive prevention, supervision, and monitoring of the digital asset market, we exhort the population to consult the Public Registry of Digital Asset Service Providers and inform themselves through our official communication channels, and to interact and invest in digital assets only with entities duly authorized by this Commission, which can be consulted on our website: https://cnad.gob.sv/es/registro-publico/
San Salvador Centro, June 30, 2025.