Ever wondered how Costa Ricans are swapping, earning, and building on crypto while the country still lacks a dedicated legal framework? Costa Rica crypto enthusiasts have found ways to operate inside existing financial rules, and the scene is already buzzing with exchanges, wallets, NFTs and even ICOs. This guide walks you through the practical steps locals use today, the gray‑area risks they manage, and what the upcoming 2025 VASP law will change.
Cryptocurrency in Costa Rica is a rapidly growing digital‑asset ecosystem that functions under general financial‑service legislation rather than a dedicated crypto code. Because the Central Bank of Costa Rica (CBCR) does not recognize crypto as legal tender, users rely on broader AML/CFT rules and standard corporate law to stay compliant.What the current legal vacuum looks like
The country’s official stance, voiced by the Central Bank of Costa Rica, is clear: digital tokens are not money, not foreign currency, and not legal tender. That means no licensing fees, no crypto‑specific taxes, and no formal supervision of exchanges. However, any business handling crypto must still follow the Anti-Money Laundering and Counter-Terrorism Financing (CFT) rules that apply to banks and other financial service providers.
How everyday users transact
For individuals, the path is simple: download a non‑custodial wallet (like Trust Wallet or Metamask), buy Bitcoin or Ether on a local or regional Crypto Exchange that complies with AML checks, and start moving funds. Many Costa Ricans also join peer‑to‑peer groups on Telegram or Discord to arrange direct crypto‑to‑fiat swaps, a practice that sidesteps banks but still requires KYC if the platform is registered.
Businesses catering to freelancers use crypto invoices to receive payments from abroad. The invoices are typically generated through services such as BitPay or CoinPayments, which act as intermediaries and automatically convert crypto to colones if needed. This way, the revenue remains traceable for tax purposes while avoiding the high fees of traditional remittance channels.
Launching a crypto‑related company today
Even without a specific crypto licence, entrepreneurs can set up a legal entity and operate within the existing framework. The process looks like this:
- Draft incorporation documents and register the company with the Registro Nacional.
- Secure a local legal address - a virtual office works for most startups.
- Open a corporate bank account. While some banks are cautious, institutions like Banco Nacional have started onboarding crypto‑friendly firms after they present solid AML policies.
- Develop and publish an AML/CFT compliance program that includes client identification, transaction monitoring, and reporting procedures.
- If the business plans to offer exchange or custody services above a modest volume, consult the Superintendencia General de Entidades Financieras (SUGEF) early to confirm whether a general financial‑service license is required.
Most startups focus on tokenization projects - launching a utility token for a local marketplace, minting Non-Fungible Token art collections, or creating a GameFi platform. As long as the token isn’t classified as a security, there’s no need to register with SUGEF. If a token does take on security characteristics, the firm must file a prospectus and obtain approval, mirroring traditional securities regulation.
What the 2025 VASP bill will change
In July 2025 the Legislative Assembly debated bill 22.837, which adds Article 15 quáter to Law 7786. The proposal defines a Virtual Asset Service Provider (VASP) as any entity that exchanges, transfers, stores, or issues virtual assets. Once the law passes, every VASP must register with SUGEF, submit detailed KYC data, and adopt risk‑based AML controls.
Key obligations will include:
- Identifying clients and ultimate beneficiaries.
- Keeping a transaction log for at least five years.
- Enhanced due‑diligence on politically exposed persons and high‑risk jurisdictions.
- Regular internal risk assessments and audits.
- Sharing suspicious‑activity reports with the Financial Intelligence Unit.
The registration is not a licence to operate; it merely signals compliance readiness. Companies that already have strong AML programs will transition smoothly, while those that rely on informal peer‑to‑peer models may need to formalize their processes.
Current benefits vs. upcoming constraints - a quick comparison
| Feature | Now (2025) | After VASP Law |
|---|---|---|
| Licensing requirement | No crypto‑specific licence needed | All VASPs must register with SUGEF |
| AML/CFT compliance | General financial‑service rules apply | Risk‑based AML program mandatory, with detailed reporting |
| Token issuance | Allowed if not classified as a security | Same, but registration adds scrutiny for security‑like tokens |
| Banking access | Case‑by‑case, banks wary of crypto volume | Improved due to clearer regulatory expectations |
| Tax treatment | Capital gains taxed; no specific crypto tax | Unchanged, but better documentation required |
Opportunities that make Costa Rica attractive
Even in the gray zone, the country draws foreign crypto firms for three main reasons:
- Tax incentives: Low corporate tax rates and no withholding tax on crypto‑related income.
- Political stability: Ranked among the most stable nations in Central America, which reduces geopolitical risk.
- Tech infrastructure: Nationwide fiber optics, affordable internet, and a growing pool of software engineers make scaling blockchain projects feasible.
These factors have encouraged startups from Mexico, the U.S., and Europe to set up regional hubs in San José, leveraging the permissive environment while preparing for the upcoming regulations.
Risk management tips for operating today
Because the legal backdrop can shift, savvy users follow a few best practices:
- Keep records. Store transaction receipts, wallet addresses, and exchange KYC documents for at least five years.
- Separate personal and business wallets. This simplifies accounting and protects personal assets if a regulator later requests audits.
- Use reputable exchanges. Platforms that already implement robust AML checks face fewer future hurdles.
- Stay informed. Follow announcements from CBCR, SUGEF, and the Legislative Assembly to anticipate rule changes.
By treating crypto as any other financial activity-complete with paperwork and compliance checks-participants avoid surprises when the VASP law finally kicks in.
Looking ahead: how to prepare for the VASP framework
If you’re thinking about launching a new crypto service, start building the compliance infrastructure now. Draft a KYC policy, embed transaction monitoring tools, and train staff on AML red flags. When the registration window opens, you’ll be ready to file with SUGEF, saving months of delay.
For existing businesses, conduct a gap analysis: compare your current AML controls against the upcoming risk‑based standards. Upgrade software, outsource monitoring to a specialist if needed, and document every step. In the long run, the clearer rules may open doors to partnerships with traditional banks and institutional investors who were previously hesitant.
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 spend digital assets as long as they obey general financial‑service laws and AML/CFT requirements.
Do I need a licence to run a crypto exchange in Costa Rica?
Currently no crypto‑specific licence is required. However, you must comply with the country’s AML/CFT rules and may need a general financial‑service licence from SUGEF if you handle large volumes.
What is a VASP and why does it matter?
A Virtual Asset Service Provider (VASP) is any entity that exchanges, transfers, stores, or issues virtual assets. The 2025 bill will require all VASPs to register with SUGEF and follow detailed AML procedures.
Can I issue an ICO in Costa Rica?
Yes, as long as the token is not classified as a security. If it is, you must file a prospectus and obtain SUGEF approval, similar to a traditional securities offering.
How will the new VASP regulation affect existing crypto businesses?
Businesses that already have AML/KYC policies will mainly need to register with SUGEF. Those operating informally will have to formalize client verification, keep detailed records, and possibly adjust banking relationships.
Marina Campenni
October 18, 2025 AT 09:34Thanks for laying out the current crypto landscape in Costa Rica. It's helpful to see the practical steps for both individuals and businesses, especially the emphasis on AML compliance. Keeping records and staying informed will definitely smooth the transition when the VASP law passes.
Irish Mae Lariosa
October 19, 2025 AT 13:21While the guide is thorough, it glosses over several critical pain points that entrepreneurs will inevitably encounter. First, the assumption that banks will gradually accept crypto‑friendly firms underestimates the entrenched risk‑aversion of traditional financial institutions. Second, the suggestion that a “virtual office” suffices for incorporation ignores the due‑diligence questions raised by the tax authority regarding beneficial ownership. Third, the claim that token issuance is unrestricted so long as the token is not a security fails to account for the ambiguous classification criteria used by SUGEF, which often applies the Howey test in a de‑facto manner. Fourth, the guide does not address the potential impact of foreign exchange controls that could be tightened in response to increased crypto volume. Fifth, the reliance on regional exchanges presumes cross‑border data sharing agreements that are not yet in place. Sixth, the recommendation to use BitPay or CoinPayments assumes these providers will maintain stable fiat conversion rates, which recent market volatility has shown to be unreliable. Seventh, the roadmap for AML program development skips the practical challenge of sourcing skilled compliance officers in a market where expertise is scarce. Eighth, the piece overlooks the cost implications of mandatory transaction logging for five years once the VASP law is enacted. Ninth, the guide assumes that the upcoming law will only add registration requirements, whereas enforcement penalties for non‑compliance could be substantial. Tenth, the discussion of tax treatment omits the potential for double‑taxation treaties to be re‑interpreted in light of crypto earnings. Eleventh, the notion that “no crypto‑specific licence is needed” may be outdated once the VASP framework becomes operational. Twelfth, the advice to keep personal and business wallets separate is sound, yet many freelancers lack the infrastructure to manage multiple wallets securely. Thirteenth, the article does not consider the environmental scrutiny that proof‑of‑work mining operations might face in Costa Rica’s sustainability agenda. Fourteenth, the brief mention of NFTs ignores the regulatory scrutiny that digital art platforms have attracted elsewhere. Fifteenth, the guide’s optimism about partnership opportunities with traditional banks underestimates the time required for banks to overhaul legacy systems. Lastly, the overall tone seems to downplay the legal risk, which could mislead newcomers into a false sense of security.
Nick O'Connor
October 20, 2025 AT 17:07It’s clear that Costa Rica’s crypto environment is evolving, however, the existing framework, while permissive, still demands careful navigation; users must adhere to AML/CFT regulations, ensure proper KYC procedures, and maintain detailed transaction records; without these safeguards, the risk of regulatory scrutiny increases dramatically.
Hailey M.
October 21, 2025 AT 20:54Wow, the 2025 VASP law sounds like the party planner we never asked for – just when we thought we could chill and trade in peace, here comes a massive compliance checklist, 🎉 🙄. It’s almost poetic how the government will finally acknowledge what we’ve been doing anyway, while asking us to fill out forms longer than a novel. Guess we’ll all be sipping coffee while our bots chug through KYC screens, because nothing says “crypto freedom” like a mountain of paperwork! 🚀
Jason Zila
October 23, 2025 AT 00:41The guide does a solid job highlighting the steps for setting up a crypto business, and the emphasis on early compliance is spot on; I appreciate the practical checklist, and I can see how establishing AML policies now will save headaches later when the VASP registration window opens.