Legal Gray Area for Cryptocurrency in Costa Rica: What Businesses Need to Know in 2026

Costa Rica doesn’t ban cryptocurrency. But it also doesn’t officially recognize it. That’s not a mistake - it’s a strategy. And it’s why hundreds of crypto startups, GameFi platforms, and NFT marketplaces have set up shop here since 2020. But here’s the catch: if you’re running a crypto business in Costa Rica, you’re operating in a legal gray zone. No clear rules. No official licenses. Just a quiet nod from regulators - as long as you don’t break the money laundering laws.

What the Central Bank Actually Says

In 2017, the Central Bank of Costa Rica (BCCR) made it clear: Bitcoin and other cryptocurrencies are not legal tender. They’re not backed by the government. You can’t pay your taxes with them. You can’t use them to buy a house through a bank. But here’s the twist - they also didn’t say you can’t use them. Private transactions? Totally fine. Buying coffee with Ethereum? Legal. Exchanging Bitcoin for colones between two individuals? No problem.

That’s the gray area in a nutshell. The government isn’t stopping you. But it also won’t protect you if something goes wrong. If someone scams you with a fake crypto exchange, you can’t go to court and say, “The law says they had to verify their identity.” Because there’s no law that says that - yet.

The 2025 Legislative Shift

On July 2, 2025, everything started to change. Costa Rica’s Legislative Assembly passed the first debate of Bill 22.837. This isn’t just a tweak - it’s the country’s first serious attempt to regulate crypto businesses. The bill adds a new section to the existing anti-money laundering law (Law No. 7786) and formally defines two key terms: Activo Virtual (Virtual Asset) and Proveedor de Servicios de Activos Virtuales (VASP).

A VASP is anyone who does any of these things:

• Exchanges crypto for colones or dollars
• Transfers crypto between wallets
• Stores crypto for others (custody services)
• Issues or markets new tokens

If you’re doing any of that, you now have to register with SUGEF - the Superintendencia General de Entidades Financieras. That’s Costa Rica’s financial watchdog. But here’s what they’re very clear about: registration is not approval. You’re not getting a license. You’re not being authorized. You’re just being asked to follow AML rules.

What Registration Actually Means

If you register as a VASP, you’re signing up for a checklist:

• Identify every customer - full name, ID, address
• Track every transaction - no exceptions
• Flag high-risk users - politicians, people from sanctioned countries
• Update your risk assessment every six months
• Share data with SUGEF if they ask

It’s not expensive. There’s no minimum capital requirement. You don’t need a local office. You don’t even need a local director. That’s why it’s cheaper than setting up in Estonia, Singapore, or even Switzerland. But it’s not free of risk. If you skip the KYC and get caught, you could face fines, asset freezes, or even criminal charges under Costa Rica’s money laundering laws.

Who’s Already Operating Here?

Costa Rica’s regulatory silence before 2025 turned it into a magnet for crypto startups. You’ll find dozens of decentralized exchanges (DEXes) registered as local LLCs. Crypto casinos use Costa Rican gaming licenses - which are easy to get - and layer them with VASP registration. GameFi projects host their tokens here because they can launch without waiting for months of compliance reviews.

One company we spoke to - a NFT marketplace based in San José - registered with SUGEF in October 2025. They told us they didn’t do it because they had to. They did it because their bank started asking questions. “We were getting flagged for large transfers,” they said. “Once we showed SUGEF paperwork, the bank stopped freezing our accounts.”

That’s the reality: banks are the real gatekeepers. Even if the government doesn’t regulate you, your bank will. And most banks in Costa Rica won’t touch crypto businesses unless they see some form of AML compliance.

The Tax Advantage

Costa Rica doesn’t tax capital gains on crypto. If you sell Bitcoin for a profit, you don’t pay income tax on it - as long as you’re not running a business. If you’re an individual trading on the side, it’s tax-free. If you’re a company mining or trading crypto regularly, you’ll pay corporate tax, but at 30%, it’s still lower than in most of Europe.

Foreign investors get an even bigger break. There’s no withholding tax on crypto payments sent abroad. No VAT on digital services. No currency controls. That’s why a lot of crypto founders from Brazil, Argentina, and Mexico set up holding companies here - not just for regulation, but for the tax code.

The Risks Nobody Talks About

Here’s the problem: if you’re a VASP and you get investigated, there’s no legal precedent. No court has ruled on whether a crypto exchange is a financial institution under Costa Rican law. If SUGEF shuts you down, can you sue? Maybe. But you won’t find a lawyer who’s done this before. The legal system isn’t built for this.

Also, the pending bill hasn’t become law yet. It’s still in second debate as of January 2026. That means the rules could change. SUGEF could demand more. Banks could tighten access. The government could suddenly decide to classify crypto as a security - and then you’d need a whole new set of licenses.

One attorney in San José told us: “We’re not in a regulatory sandbox. We’re in a sandbox with no walls. You can play, but you’re not protected if the tide comes in.”

What You Should Do Right Now

If you’re running a crypto business in Costa Rica - or thinking about it - here’s your action list:

1. Register with SUGEF as a VASP - even if it’s not mandatory yet. Do it before the law passes.
2. Implement full KYC/AML procedures. Use a third-party provider like Sumsub or Jumio - don’t try to do it manually.
3. Keep all transaction records for at least five years. SUGEF can request them anytime.
4. Separate your crypto business from your personal finances. Use a corporate bank account - never your private one.
5. Don’t assume you’re safe because you’re “not breaking any laws.” You’re operating in a gray zone. Gray zones can turn black overnight.

The Bigger Picture

Costa Rica isn’t trying to be the next Switzerland. It’s trying to be the next El Salvador - but without the Bitcoin law drama. It wants innovation. It wants jobs. It wants foreign investment. But it also wants to avoid being labeled a money laundering haven.

The 2025 bill is the middle path: tolerate crypto, but force it to play by anti-crime rules. It’s not perfect. But it’s working - for now.

The next 12 months will be critical. If the bill passes in full, Costa Rica will become the first Latin American country to regulate crypto through AML - not through licensing. That could make it a model for other countries in the region.

Until then, the gray area stays open. But it’s getting smaller.