Future Trends in Costa Rican Cryptocurrency Legislation

The Current Regulatory Framework for Cryptocurrency in Costa Rica

If you’re a crypto pioneer, you’ve probably heard the buzz about Costa Rica. But what’s actually happening on the ground? Costa Rican Cryptocurrency Legislation currently allows crypto activities to operate within existing commercial and financial laws. The Central Bank of Costa Rica (BCCR) doesn’t classify crypto as legal tender, but it doesn’t prohibit its use. This means private transactions are permitted without needing special licenses.

• No Dedicated Crypto License: Virtual Asset Service Providers (VASPs) are not yet required to obtain a specific operational license.
• AML/KYC Compliance: All VASPs must adhere to strict Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations, with oversight from the Financial Supervisory Authority (SUGEF). This involves concrete steps like customer due diligence and reporting suspicious activities.
• Taxable Asset: Cryptocurrency is treated as a taxable asset, meaning gains and commercial transactions must be reported to the national Tax Directorate.

This balanced approach has made Costa Rica an attractive and flexible base for crypto startups. However, change is coming, and proactive compliance is your best strategy.

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Future Trends and Developments in Costa Rican Cryptocurrency Legislation

Costa Rica isn’t sitting still. Several legislative proposals are in the works to create a more defined and secure environment for digital assets. Our legal experts are monitoring these bills, including the pivotal Bill 23.415, and note that the focus is on “regulation for security, not for restriction.”

Here are the key proposals shaping the future:

• Bill 22.837: This bill focuses on AML/CFT compliance, requiring all VASPs to register with SUGEF. It establishes a public registry, adding a layer of transparency and accountability without imposing the costs and complexities of a full operational license.
• Bill 23.415 (“Cryptoassets Market Law”): A more comprehensive proposal, this law aims to regulate everything from crypto mining and exchanges to custody services. It introduces clearer taxation policies related to cryptocurrency in Costa Rica, including potential tax exemptions for personal crypto transactions—a move designed to encourage wider adoption.
• Bill 24.811: This aligns Costa Rica’s reporting requirements with the OECD’s Crypto-Asset Reporting Framework (CARF). By adopting this 2022 international standard, Costa Rica signals its commitment to financial transparency and combating tax evasion, boosting its credibility on the global stage. You can learn more about these global standards directly from the OECD’s transparency page.

These developments highlight a deliberate shift toward a well-structured regulatory environment that protects consumers and investors while still championing innovation.

Challenges and Opportunities for Crypto Startups

Navigating this evolving environment presents both challenges facing crypto startups in Costa Rica and immense opportunities. The primary challenge is uncertainty; operating in a market with pending legislation requires agility. However, the opportunity is significant. By establishing a presence now, businesses can position themselves as market leaders in a jurisdiction that is actively working to become a premier crypto hub in Latin America.

Compared to its neighbors, Costa Rica offers a compelling middle ground. It avoids the heavy-handed restrictions of some nations and the complete lack of oversight of others, making it a strategic choice for serious, long-term ventures. For a broader look at how different countries compare, explore our guide to all jurisdictions where we offer services.

Conclusion: Your Next Move in Costa Rica’s Crypto Market

Costa Rica is on a clear trajectory toward building a sophisticated and secure regulatory framework for cryptocurrency in Costa Rica. Costa Rican Cryptocurrency Legislation is moving toward mandatory VASP registration, clearer tax rules, and alignment with global standards—all designed to foster trust and sustainable growth. For entrepreneurs, this is a call to action: the time to build a compliant foundation is now.

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