Costa Rica

Disclaimer: The regulatory information provided below is for general informational purposes only and may not reflect the most current legal developments. Cryptocurrency regulations are rapidly evolving and can change frequently. This information should not be considered legal or tax advice. Before making any business or investment decisions, please consult with qualified legal, tax, or financial professionals familiar with your specific jurisdiction and circumstances. Always verify current regulations with official government sources and regulatory bodies.

Legal Classification & Regulatory Framework

Cryptocurrency Status

Costa Rica takes a notably permissive approach to cryptocurrency regulation, operating largely on the principle that activities not explicitly prohibited by law are permitted. The Central Bank of Costa Rica (Banco Central de Costa Rica, BCCR) has clarified that cryptocurrencies are not recognized as legal tender and are not backed by the government or regulated financial institutions. However, their use in private transactions is explicitly allowed under the country’s civil and commercial codes.

The legal classification of cryptocurrencies in Costa Rica has evolved through various interpretations by different government bodies. The BCCR has characterized cryptocurrencies as assets that should be considered „goods“ or „property“ rather than currency. The country’s legal framework allows cryptocurrencies to potentially fall under classifications of „means of payment“ or „quasi-money,“ given that Costa Rican contract law permits private parties to agree on various forms of payment in commercial transactions.

Costa Rica’s constitution and civil code establish that any activity not explicitly forbidden by law is permitted for private parties. This foundational principle allows Costa Ricans and businesses operating in the country to trade, own, and transact in cryptocurrencies, as well as provide crypto-related services, without facing legal prohibition. This approach differs significantly from jurisdictions that have established comprehensive regulatory frameworks or outright restrictions on digital assets.

Tax Treatment

Costa Rica operates on a territorial taxation system, meaning only income derived from Costa Rican sources is generally subject to taxation. The Ministry of Finance (Ministerio de Hacienda) through the General Directorate of Taxation has provided guidance on how cryptocurrencies fit within the existing tax framework.

For tax purposes, cryptocurrencies and crypto assets are classified as virtual or intangible assets. The tax treatment depends on the nature of the activity undertaken by the taxpayer:

Business Activities: Virtual assets linked to business activity are subject to Corporate Income Tax (CIT). Service providers operating in Costa Rica who offer cryptocurrency-related services, including wallet providers, miners, exchanges, and custody services, must fulfill formal tax obligations with income subject to CIT.

Personal Investments: Returns on investments in crypto assets or capital gains from personal holdings are subject to the Tax on Capital Income and Capital Gains, unless the asset is linked to a business activity.

Service Provider Obligations: Collection of fees for transactions involving the organization, verification, or exchange of virtual assets are subject to both CIT and Value Added Tax (VAT). Individuals or entities that provide services to safeguard cryptographic keys, maintain or store virtual assets, exchange virtual assets for legal tender or other cryptocurrencies, or assist in carrying out these operations must comply with all applicable tax duties.

The territorial tax system means that income generated from cryptocurrency activities occurring entirely outside Costa Rica may not be subject to local taxation, making the jurisdiction attractive to international crypto businesses. However, businesses should seek professional guidance on determining the source of their income.

Regulatory Oversight

While Costa Rica has not yet enacted comprehensive cryptocurrency-specific legislation, several government bodies have varying degrees of involvement in overseeing crypto-related activities:

Central Bank of Costa Rica (BCCR): The primary monetary authority that oversees the monetary system, sets regulations for financial intermediaries, and has issued statements clarifying the status of cryptocurrencies. The BCCR maintains that crypto transactions are conducted at the user’s own risk.

Superintendencia General de Entidades Financieras (SUGEF): The financial supervisory authority that regulates financial entities and enforces anti-money laundering requirements. Under pending legislation, SUGEF would serve as the primary registration and supervisory body for Virtual Asset Service Providers (VASPs).

Consejo Nacional de Supervisión del Sistema Financiero (CONASSIF): The senior steering body that directs and coordinates SUGEF and issues regulations regarding financial sector supervision.

Superintendencia General de Valores (SUGEVAL): The securities regulator that may become involved if crypto tokens are classified as securities.

Financial Intelligence Unit (UIF) of the Costa Rican Drug Institute (ICD): Responsible for receiving and analyzing suspicious transaction reports, including those related to crypto activities.

Costa Rica’s Legislative Assembly has been considering several bills to establish a formal regulatory framework. Bill 22.837 focuses on VASP registration requirements and AML compliance, while Bill 23.415 (the Cryptoassets Market Law) aims to comprehensively regulate mining, commercialization, exchange, custody, and administration of crypto assets. These legislative proposals would mandate SUGEF registration for VASPs and establish clear AML/KYC requirements in alignment with FATF recommendations.

Business Environment

Banking Relationships

Banking relationships for cryptocurrency businesses in Costa Rica present challenges similar to those in many jurisdictions. While opening bank accounts for crypto companies is possible, businesses should anticipate a potentially lengthy process with substantial documentation requirements. Banks may impose additional scrutiny and restrictions on crypto-related activities due to compliance concerns.

The absence of dedicated crypto regulation has led some traditional financial institutions to adopt cautious approaches toward crypto businesses. Companies operating primarily with cryptocurrencies may find it more practical to operate without traditional banking relationships, though this limits their ability to interface with the traditional financial system.

Companies seeking banking services should ensure they have robust legal documentation, clear business models, and strong AML/KYC procedures in place. Working with local legal counsel and banking specialists can facilitate the account opening process. Costa Rica is no longer on the EU blacklist for AML compliance, which has improved the country’s standing for international banking relationships.

Licensing Requirements

Currently, Costa Rica does not have a distinct cryptocurrency licensing regime. Crypto businesses operate under general commercial and financial laws, provided they do not engage in activities regulated under securities or traditional banking frameworks. This means businesses can conduct cryptocurrency-related activities by registering a standard limited liability company (Sociedad de Responsabilidad Limitada) or corporation (Sociedad Anónima) and declaring their business activities in the Articles of Incorporation.

Key requirements for establishing a crypto business include:

Registration with the National Registry (Registro Nacional), which maintains records of legal entities. Within a specified period after registration, companies must file shareholder and beneficial owner information with the Central Bank.

If pending legislation passes, VASPs would be required to register with SUGEF. This registration would not constitute a license to operate but rather serve as a compliance checkpoint ensuring adherence to AML/CFT norms. Registered entities would fall under risk-based supervision by SUGEF.

Companies issuing tokens that may qualify as securities would need to register with SUGEF and potentially SUGEVAL, depending on the token’s characteristics.

All crypto businesses must comply with existing AML requirements under Law 8204, which governs anti-money laundering and counter-terrorism financing. This includes maintaining customer identification procedures, transaction monitoring, and suspicious activity reporting to the Financial Intelligence Unit.

Innovation Support

Costa Rica has demonstrated general openness to fintech innovation, though there are no specific government programs or regulatory sandboxes dedicated to cryptocurrency or blockchain development. The country’s technology infrastructure and growing digital economy provide a foundation for crypto businesses to operate.

The fintech sector has experienced growth with increasing adoption of digital banking services, mobile payments, and innovative financial solutions. Costa Rica’s stable political environment, educated workforce, and established technology sector have attracted various blockchain and cryptocurrency projects.

The country has seen interest in blockchain applications beyond cryptocurrencies, including potential uses in public services, supply chain management, and environmental conservation initiatives. Various merchants across the country have begun accepting cryptocurrency payments, particularly in tourism-heavy areas and among tech-oriented businesses.

Market Characteristics

Adoption Patterns

Cryptocurrency adoption in Costa Rica has grown organically, particularly in urban centers like San José and tourist-popular coastal areas including Puntarenas and Guanacaste. An increasing number of merchants have begun accepting cryptocurrency payments, including coffee shops, hotels, restaurants, tourism operators, and various service providers.

The country has attracted interest from international cryptocurrency users and businesses due to its favorable tax treatment and permissive regulatory environment. Real estate transactions using cryptocurrency have become increasingly common, particularly among foreign buyers and tech-savvy investors, as Costa Rican contract law allows private parties to agree on alternative forms of payment.

Bitcoin ATMs operate in various locations throughout the country, providing access to cryptocurrency for both residents and visitors. The tourism industry’s significant presence has contributed to merchant adoption, as businesses seek to accommodate international visitors who prefer digital asset payments.

Industry Focus

Costa Rica has developed particular strengths in several cryptocurrency-related sectors. The combination of permissive regulation and favorable tax treatment has made the country attractive for various crypto business models:

GameFi and crypto gaming platforms have found Costa Rica particularly welcoming, benefiting from synergies with the country’s established online gaming industry. Web3 games, crypto casinos, and play-to-earn platforms have chosen Costa Rica as a base of operations.

Decentralized projects including DeFi protocols, decentralized exchanges, DAOs, and NFT platforms have increasingly selected Costa Rica for their operational headquarters due to regulatory flexibility.

Token offerings (ICOs, IEOs, ITOs) have been conducted from Costa Rica, though issuers must ensure their tokens do not qualify as securities to avoid additional regulatory requirements.

Cryptocurrency exchanges, wallet services, and custody providers operate in the country under general commercial law, serving both local and international clients.

Regulatory Evolution

Costa Rica’s cryptocurrency regulatory landscape is in a transitional phase. While the current approach remains largely permissive and unstructured, legislative efforts indicate movement toward a more defined framework. The pending legislation focuses primarily on AML/CFT compliance and VASP registration rather than comprehensive operational regulation.

The proposed regulatory changes align with international standards, particularly FATF recommendations for virtual asset service providers. If enacted, these would bring Costa Rica more in line with regional and international regulatory trends while maintaining the country’s business-friendly approach.

Unlike neighboring El Salvador, which has adopted bitcoin as legal tender, Costa Rica has taken a more cautious approach that allows private use without government backing. This positions the country as a middle ground between jurisdictions with strict regulations and those actively promoting cryptocurrency adoption.

Businesses and individuals operating in Costa Rica should monitor legislative developments closely, as the regulatory environment may evolve as the country balances innovation promotion with financial stability and consumer protection concerns.

For Current Information:

• Central Bank of Costa Rica (BCCR): https://www.bccr.fi.cr/
• Superintendencia General de Entidades Financieras (SUGEF): https://www.sugef.fi.cr/
• Consejo Nacional de Supervisión del Sistema Financiero (CONASSIF): https://www.conassif.fi.cr/
• Ministry of Finance (Ministerio de Hacienda): https://www.hacienda.go.cr/
• Costa Rican Drug Institute – Financial Intelligence Unit (ICD): https://www.icd.go.cr/
• National Registry (Registro Nacional): https://www.registronacional.go.cr/
• Legislative Assembly of Costa Rica: https://www.asamblea.go.cr/