How Costa Ricans Use Crypto Without Regulations (2025 Guide)
Dec, 22 2024
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TL;DR
- Costa Rica has no specific crypto law yet, so users rely on general financial regulations.
- Exchanges, wallets, peer‑to‑peer trades, and local crypto cafés are common ways to handle digital assets.
- Businesses operate as Virtual Asset Service Providers (VASPs) and must follow AML/CFT rules.
- Bill 22.837, debated since July2025, will require VASPs to register with SUGEF.
- Tax incentives and stable infrastructure keep Costa Rica attractive for crypto startups.
Costa Rica cryptocurrency is a rapidly growing digital‑asset scene that thrives despite the absence of a dedicated regulatory framework. The Central Bank of Costa Rica (Central Bank of Costa Rica) has repeatedly warned that crypto is not legal tender, but it also hasn’t blocked its use. This creates a gray zone where everyday people, entrepreneurs, and investors can move, store, and trade crypto using existing financial‑service rules.
What the current legal backdrop looks like
As of October2025, Costa Rica’s laws treat crypto like any other digital commodity. There is no specific “crypto law,” but companies that offer exchange, custody, or token‑sale services fall under the country’s general Anti‑Money‑Laundering (AML) and Counter‑Financing of Terrorism (CFT) requirements. In practice, that means:
- Businesses must identify clients (KYC) and keep detailed transaction logs.
- High‑risk users, such as politically exposed persons, face extra scrutiny.
- Banking partners often demand proof that crypto activities are not linked to money‑laundering.
While the Superintendencia General de Entidades Financieras (SUGEF) does not yet issue a crypto‑specific licence, it does oversee any entity that meets the definition of a Virtual Asset Service Provider (VASP). The VASP concept was introduced in the draft bill 22.837, which adds Article15quáter to LawNo.7786.
How ordinary Costa Ricans actually use crypto
Without a dedicated regulator, people have built a practical ecosystem using the tools that are already legal.
- Crypto exchanges: Platforms like Bitso, Binance, and local startup CryptoCR let users swap Bitcoin, Ether, and stablecoins for colón or dollars. Exchanges must register as financial service providers and run AML checks, but they’re otherwise free to operate.
- Wallets: Both custodial (e.g., Coinbase, local wallet app VivaCoin) and non‑custodial wallets (MetaMask, Trust Wallet) are popular. Custodial services are treated like banks and must follow AML protocols.
- Peer‑to‑peer (P2P) trading: Communities gather on Telegram, Discord, and Facebook groups to arrange face‑to‑face swaps. Because no formal licence is needed, this method stays low‑cost and fast. \n
- Remittances: Thousands of Costa Ricans receive money from abroad. Crypto offers a cheaper alternative to traditional money‑transfer services. Users often convert received crypto to colón via local exchanges.
- Local crypto cafés: In San José and other cities, cafés accept Bitcoin or USDC for coffee and snacks. The owners simply scan a QR code and record the transaction for their accounting.
All of these methods work because they rely on existing financial‑service regulations, not on a crypto‑specific rulebook.
Business side: building a crypto company in Costa Rica
Entrepreneurs who want to launch a crypto‑related startup follow a fairly standard company‑formation process, then layer on the AML/CFT obligations that apply to any financial service.
- Incorporation: File articles of incorporation with the Registro Nacional, obtain a legal address, and appoint a local director.
- Bank account: Open a corporate account. Traditional banks are cautious, so many opt for fintech‑friendly banks or offshore accounts.
- Compliance program: Draft AML policies, appoint a compliance officer, and set up transaction‑monitoring software.
- VASPs and registration: Once the draft bill passes, VASPs will need to register with SUGEF. Registration does not grant a licence; it simply confirms that the entity meets risk‑based AML standards.
Typical crypto‑business models thriving today include:
- Initial Coin Offerings (ICOs) that launch tokens not classified as securities.
- Tokenization platforms that issue ERC‑20 or BEP‑20 tokens representing real‑estate shares, art, or agricultural produce.
- Non‑Fungible Tokens (NFTs) for digital art, collectibles, and GameFi projects.
- Custodial services that store large crypto balances for institutions and high‑net‑worth individuals.
What the upcoming Bill 22.837 means for users and firms
The July2025 draft "Proyecto de Ley Reforma a la Ley sobre Estupefacientes…" (commonly called Bill22.837) aims to bring Costa Rica in line with FATF standards. Key points:
| Aspect | Now (2025) | After Bill22.837 |
|---|---|---|
| VASP requirement | No specific registration, only general AML compliance. | Mandatory registration with SUGEF. |
| KYC depth | Basic client ID verification. | Enhanced due‑diligence, beneficiary identification, and risk assessments. |
| Reporting | Ad‑hoc suspicious activity reports. | Regular transaction‑monitoring reports to a centralized SUGEF KYC platform. |
| Penalties | Administrative fines under generic financial‑service law. | Specific sanctions for non‑registered VASPs, including fines up to 5% of annual turnover. |
For everyday users, the biggest impact will be tighter ID checks when opening exchange accounts or using custodial wallets. Peer‑to‑peer trades will stay largely unchanged, because the bill targets entities that facilitate large‑scale transfers.
Practical tips for staying compliant and safe
- Choose regulated exchanges. Even if the law is lax, reputable platforms already enforce AML checks, reducing the risk of account freezes.
- Keep good records. Store copies of transaction hashes, screenshots of wallet addresses, and any KYC documents. If SUGEF ever asks for proof, you’ll be ready.
- Use hardware wallets for large holdings. Non‑custodial solutions (Ledger, Trezor) keep your private keys offline and avoid unnecessary exposure to bank scrutiny.
- Watch for tax obligations. Costa Rica taxes foreign‑source income under certain conditions. Crypto gains may be subject to capital‑gain rules if you convert to fiat through a local entity.
- Stay updated on Bill22.837. The legislation is still in debate; once passed, register your VASP early to avoid penalties.
Risks and how to mitigate them
Even in a permissive environment, crypto carries typical risks:
- Volatility. Sudden price swings can wipe out savings. Consider stablecoins for everyday payments.
- Regulatory shift. The upcoming VASP framework could add compliance costs. Build flexible processes now.
- Banking reluctance. Some local banks may still refuse crypto‑related accounts. Keep a backup fintech partner.
- Scams. Peer‑to‑peer markets are fertile ground for fraud. Verify counter‑party reputation and use escrow services when possible.
By following the tips above, you can enjoy the benefits of crypto while keeping legal headaches to a minimum.
Frequently Asked Questions
Is cryptocurrency legal in Costa Rica?
Crypto is not illegal, but it is also not recognized as legal tender. Users can hold, trade, and use digital assets as long as they comply with general AML and CFT rules.
Do I need a license to run a crypto exchange in Costa Rica?
Currently no specific crypto licence exists. Exchanges must register as financial service providers and meet AML/CFT standards. After Bill22.837 passes, they will also need to register as a VASP with SUGEF.
Can I pay for everyday items with Bitcoin in Costa Rica?
Yes, several cafés and small businesses accept Bitcoin or stablecoins via QR codes. They typically treat the transaction as a private sale and record it for tax purposes.
What happens if the VASP law is approved?
All VASPs will have to register with SUGEF, submit detailed KYC data, and follow a risk‑based monitoring framework. Failure to register could result in fines or forced shutdown.
Are there tax benefits for crypto businesses in Costa Rica?
Costa Rica offers a low corporate tax rate on foreign‑source income and several incentives for technology startups, making it attractive for crypto firms that export services.
karsten wall
December 22, 2024 AT 08:15Navigating the Costa Rican crypto landscape demands a nuanced understanding of the interplay between AML/CFT frameworks and nascent VASP considerations. By leveraging a layered compliance architecture-integrating KYC protocols, transaction monitoring, and risk‑based onboarding-you can future‑proof your operations against the impending Bill 22.837. The ecosystem's liquidity is buoyed by cross‑border remittance corridors, which underscores the importance of interoperable stablecoin bridges to mitigate FX volatility. Moreover, fostering a governance model that harmonizes stakeholder incentives with regulatory expectations will catalyze sustainable growth. In short, think of compliance as a modular stack rather than a monolithic barrier.
Keith Cotterill
December 28, 2024 AT 19:49Indeed, the Costa Rican paradigm-replete with ad‑hoc AML heuristics, a quasi‑regulatory vacuum, and nascent VASP discourse-offers a fertile ground for speculative arbitrage; however, one must caution against complacency, for the legislative tide is inexorable, and regulators, albeit currently dormant, are poised to codify stringent KYC mandates; thus, the prudent actor will pre‑emptively align with FATF‑aligned frameworks, lest they be caught in the cross‑currents of retroactive enforcement-obviously, a scenario no sophisticated operator can afford.
C Brown
January 4, 2025 AT 07:22Oh great, another country letting crypto run wild like a toddler in a candy store, and then pretending it's all sunshine and rainbows while the tax man peeks over his shoulder. The truth? Costa Rica's crypto playground is as regulated as a pirate ship-fun until the navy shows up, and then you're left scrambling for a life‑raft.
Noel Lees
January 10, 2025 AT 18:55Honestly, the way folks are swapping Bitcoin for colón over a cup of coffee feels like the future is already here 😊. If you keep your records tidy and use a hardware wallet for the bulk, you’ll dodge most headaches when the VASP law finally lands.
Adeoye Emmanuel
January 17, 2025 AT 06:29Consider this: the absence of a dedicated crypto charter is simultaneously a blessing and a crucible. It grants you the liberty to innovate, yet it demands a self‑imposed rigor that rivals any formal regulator. By instituting internal audit cycles, documenting every on‑ramp and off‑ramp transaction, and engaging a compliance officer early, you sculpt a resilient foundation that can weather the legislative storm looming on the horizon.
mukund gakhreja
January 23, 2025 AT 18:02Look, crypto in Costa Rica is a wild west but not without its own sheriffs. You don’t need a fancy licence right now just solid KYC practices and a bit of common sense, so keep it simple and stay ahead of the game.
Michael Ross
January 30, 2025 AT 05:35Maintaining basic transaction logs and using reputable exchanges should keep you on the right side of the current guidelines.
Marie Salcedo
February 5, 2025 AT 17:09Great tip! I’ll make sure to back up my wallet backups and keep an eye on any news about Bill 22.837.
Megan King
February 12, 2025 AT 04:42Hey folks, just a heads up – don’t forget to double‑check your KYC docs before you sign up any new exchange. It’s easy to miss a spot, and you’ll save yourself a lotta hassle later.
Rachel Kasdin
February 18, 2025 AT 16:15Yo, I think the US should copy Costa Rica’s chill vibe, but honestly they need tighter rules – otherwise it’s just chaos, and we ain’t got time for that mess.
Nilesh Parghi
February 25, 2025 AT 03:49From a broader perspective, the balance between innovation and oversight mirrors the age‑old tension between freedom and security. It’s a delicate dance, but one that can foster a more equitable digital economy if choreographed wisely.
CJ Williams
March 3, 2025 AT 15:22Wow!!! This guide is 🔥🔥🔥 – super helpful for anyone trying to navigate the crypto scene in Costa Rica 😎. Remember, use a hardware wallet like Ledger or Trezor to keep your keys safe!!! And always keep an eye on the news for updates on Bill 22.837!!! 🚀🚀🚀
Iva Djukić
March 10, 2025 AT 02:55The evolution of Costa Rica's crypto environment can be interpreted as a microcosm of the global decentralization narrative, where regulatory lag serves both as a catalyst for experimentation and a potential source of systemic risk.
In this liminal space, market participants are compelled to construct self‑governance frameworks that incorporate anti‑money‑laundering (AML) protocols, know‑your‑customer (KYC) exigencies, and transaction‑monitoring heuristics traditionally reserved for fiduciary institutions.
Such an emergent compliance architecture necessitates a layered risk assessment matrix, wherein each asset class-be it Bitcoin, Ethereum, or stablecoins-receives a differentiated rating based on liquidity, volatility, and counterparty exposure.
Practitioners who adopt a modular approach, deploying smart‑contract based attestations for identity verification, can achieve a degree of regulatory resilience that is both auditable and adaptable.
Moreover, the prospect of Bill 22.837 introduces a formal VASP registration regime, which, while ostensibly imposing additional administrative overhead, also creates a standardized audit trail that could enhance investor confidence.
This legislative shift aligns Costa Rica with the Financial Action Task Force (FATF) recommendations, thereby reducing the jurisdictional arbitrage incentives that have historically attracted illicit activity.
Nevertheless, the transitional period offers a strategic window for startups to entrench robust compliance pipelines before the statutory deadlines crystallize.
By integrating blockchain analytics tools-such as Chainalysis or CipherTrace-into their operational workflows, entities can preemptively flag anomalous transaction patterns and demonstrate proactive risk mitigation.
Simultaneously, the burgeoning ecosystem of crypto‑friendly cafés and peer‑to‑peer trading communities illustrates a grassroots adoption model that thrives on low‑friction user experiences.
These micro‑economic nodes serve as data points for network effect analyses, reinforcing the argument that decentralized finance can coexist with macro‑regulatory oversight without stifling innovation.
From a tax perspective, the distinction between foreign‑source income and domestic earnings becomes pivotal, especially given Costa Rica's preferential corporate tax rates for export‑oriented digital services.
Hence, meticulous record‑keeping-capturing wallet addresses, transaction hashes, and fiat conversion timestamps-is not merely a bureaucratic formality but a strategic asset in future audit scenarios.
Players who overlook this diligence risk retroactive penalties that could erode profitability and tarnish reputational capital.
In sum, the confluence of regulatory ambiguity, emerging legislative frameworks, and vibrant community adoption creates a fertile yet fragile environment.
Stakeholders who navigate this terrain with a disciplined, forward‑looking compliance posture will likely emerge as the vanguards of a resilient Latin American crypto hub.
Conversely, those who rely on regulatory inertia may find themselves scrambling when the legislative tide finally turns, underscoring the timeless adage that preparation is the best hedge against uncertainty.
Darius Needham
March 16, 2025 AT 14:29The proposed VASP registration will likely streamline cross‑border remittances, cutting fees for families that depend on crypto to bypass traditional channels.
WILMAR MURIEL
March 23, 2025 AT 02:02I totally get the anxiety around keeping up with fast‑moving regulations; that’s why I always recommend building a compliance checklist early-start with KYC, then move to transaction monitoring, and finally set up a periodic audit schedule. It’s a lot of work, but treating it as an ongoing project rather than a one‑off task makes it manageable. Also, don’t forget to educate your team; a well‑informed staff can spot red flags before they become serious issues. And if you ever feel stuck, there are plenty of online communities where you can share best practices and learn from others who have walked the same path.
carol williams
March 29, 2025 AT 13:35Permit me to elucidate the impending ramifications: should the legislative apparatus falter in its execution, the resultant lacuna will not merely be a bureaucratic oversight but a potential catalyst for systemic destabilization across the nascent crypto market, thereby imperiling both domestic investors and transnational stakeholders alike.
Maggie Ruland
April 5, 2025 AT 01:09Yeah, because nothing says stability like a country that lets you trade Bitcoin in a coffee shop and then whispers about regulations later.
jit salcedo
April 11, 2025 AT 12:42What if the whole VASP push is just a covert operation to funnel crypto profits into shadowy state coffers? The timing feels orchestrated, and the language of the bill hints at deeper surveillance mechanisms that could erode the very anonymity the blockchain promises.
Joyce Welu Johnson
April 18, 2025 AT 00:15A practical step is to set up a dedicated accounting spreadsheet that logs every inbound and outbound crypto transaction, including the fiat conversion rate at the time of each trade. This habit not only simplifies tax reporting but also provides a clear audit trail should regulators ever request documentation.
Ally Woods
April 24, 2025 AT 11:49Honestly, all this compliance talk is kinda overkill for most folks just trying to send money home; maybe we should just chill and let the market figure it out.
Kristen Rws
April 30, 2025 AT 23:22Stay safe and keep those keys offline!