Costa Rica doesn’t ban cryptocurrency. But it also doesn’t officially recognize it. That’s not a mistake - it’s the whole point. While countries like El Salvador made Bitcoin legal tender and others like the U.S. and EU built complex licensing systems, Costa Rica chose something different: silence. And that silence has become a magnet for crypto startups, NFT marketplaces, and decentralized finance platforms looking for the easiest place to launch without red tape.
Nothing is illegal - but nothing is protected either
The Central Bank of Costa Rica made it clear back in 2017: Bitcoin and other cryptocurrencies aren’t legal tender. They’re not money in the eyes of the state. You can’t pay your taxes with them. You can’t use them to settle debts in court. But here’s the twist - you can still use them. Private transactions between individuals? Totally fine. Businesses accepting crypto for goods or services? No law stops them. The government just doesn’t care enough to step in. That’s the gray area in action. It’s not illegal to hold, trade, or use crypto. But if something goes wrong - if a wallet gets hacked, if a company disappears with your funds, if a payment gets reversed - you have no legal recourse. There’s no consumer protection. No insurance fund. No regulator to call. You’re on your own.The 2025 shift: AML rules arrive, but no licenses
On July 2, 2025, Costa Rica’s Legislative Assembly passed the first reading of Bill 22.837. This wasn’t about making crypto legal. It was about controlling crime. The bill forces Virtual Asset Service Providers (VASPs) - exchanges, wallet providers, crypto casinos, DeFi platforms - to register with SUGEF, the country’s financial supervisor. They must now do customer checks (KYC), track all transactions, report suspicious activity, and keep records for at least five years. But here’s what no one talks about: registration is not approval. SUGEF doesn’t say, “You’re good to go.” They say, “You’re on our radar.” This isn’t a license. It’s a compliance checkpoint. You can still operate without registering - but if you get caught doing business and haven’t filed, you could face fines or criminal charges under money laundering laws. Think of it like driving without a license. The police won’t stop you unless you’re speeding or cause an accident. But if you get pulled over, you’re in trouble. Costa Rica’s system works the same way. Most crypto businesses operate quietly. The ones that get noticed? They’re the ones who didn’t bother with AML.
Who’s actually using Costa Rica as a base?
The answer? Startups that need speed, not security. GameFi platforms with in-game tokens? They set up shop here. Crypto casinos that let you bet with Ethereum? They register a company, open a bank account, and start accepting deposits. Decentralized exchanges (DEXes) that don’t require KYC? They run servers from Costa Rica because no one’s asking for a permit. Why? Because the cost is near zero. No minimum capital requirement. No need to hire local directors. No office space mandate. You can incorporate a company online in under a week. The process is faster than opening a PayPal business account in the U.S. And unlike in the EU or Singapore, where you need to prove you’re solvent and have audited financials, Costa Rica asks for almost nothing. This isn’t just about crypto. The same low-barrier rules apply to gaming licenses. Many crypto casinos combine their VASP registration with a gaming license from the Costa Rican government - a combo that’s nearly impossible to replicate elsewhere. It’s why dozens of platforms from Eastern Europe, Latin America, and Southeast Asia now have legal entities in San José.The hidden risks no one warns you about
The freedom sounds great - until the bank account gets frozen. Even though the government doesn’t regulate crypto, banks do. And banks are terrified of money laundering. Many local banks refuse to open accounts for crypto companies outright. Others accept them - then suddenly shut them down without warning, citing “risk concerns.” There’s no appeal process. No explanation. Just a letter saying your account is closed. Then there’s the tax gray zone. Costa Rica doesn’t tax foreign-sourced income. So if you’re a non-resident running a crypto business from here, and your profits come from outside the country? You owe zero income tax. But if you’re a resident - or if you withdraw money to your personal account - the rules get messy. The tax authority (Hacienda) doesn’t have clear guidelines on how to treat crypto gains. One accountant says it’s capital gains. Another says it’s business income. No one knows for sure. And what happens if the law changes? The bill passed its first debate, but it’s not law yet. If it becomes final, SUGEF could start auditing VASPs. They could demand proof of compliance. They could demand you shut down services you thought were legal. Right now, you’re operating under a temporary truce - not a contract.
What you need to do to survive
If you’re thinking of setting up a crypto business in Costa Rica, here’s what actually works:- Register your company with the National Registry - it’s cheap and fast.
- Open a corporate bank account. Try multiple banks. Credit unions sometimes work better than big banks.
- Implement full AML/KYC procedures - even if you’re not required yet. Use tools like Chainalysis or Elliptic to monitor transactions.
- Register with SUGEF as a VASP. Don’t wait until they come knocking.
- Keep every transaction record. Every wallet address. Every customer ID. You’ll need them.
- Don’t rely on Costa Rica’s silence as protection. Assume the law will change next year - and plan for it.
Why this matters for the rest of Latin America
Costa Rica isn’t alone. Panama, Uruguay, and Mexico are all wrestling with the same question: How do you let innovation happen without becoming a haven for criminals? But Costa Rica’s model is unique. It doesn’t try to control the market. It just tries to monitor it. That’s why it’s become the most attractive jurisdiction in the region for crypto startups. Other countries are adding layers of bureaucracy. Costa Rica is removing them - while quietly tightening the screws behind the scenes. It’s a balancing act. And so far, it’s working. The country has avoided the chaos of outright bans while sidestepping the red tape of over-regulation. But it’s not sustainable forever. The Financial Action Task Force (FATF) is watching. International banks are pressuring. And when the pressure builds, the gray area will turn white - or black. Right now, Costa Rica offers something rare: freedom without guarantees. That’s worth something - if you know how to use it before it disappears.Is cryptocurrency legal in Costa Rica?
Yes, but not officially. Cryptocurrency isn’t illegal to hold, trade, or use in private transactions. However, it’s not legal tender, meaning businesses can’t be forced to accept it, and it has no protection under financial law. The government doesn’t ban it - it just doesn’t regulate it, creating a gray area.
Do I need a license to run a crypto exchange in Costa Rica?
No formal license is required - yet. But under the new bill passed in July 2025, all Virtual Asset Service Providers (VASPs) must register with SUGEF, Costa Rica’s financial supervisor. Registration isn’t approval. It’s compliance. If you operate without registering and get caught, you could face penalties under anti-money laundering laws.
Can I open a bank account for my crypto business in Costa Rica?
It’s possible, but difficult. Many banks refuse crypto businesses outright. Others accept them but may close accounts without notice due to AML concerns. Credit unions and smaller financial institutions are often more flexible. You’ll need to demonstrate strong AML procedures and be prepared for scrutiny.
Are crypto profits taxed in Costa Rica?
For non-residents earning income from foreign crypto operations, there’s currently no income tax. For residents, the rules are unclear. The tax authority hasn’t issued official guidance, so gains may be treated as capital gains or business income depending on the accountant. There’s no official rate - and no enforcement yet.
What happens if Costa Rica passes stricter crypto laws?
If the current bill becomes law, VASPs will be required to comply with full AML/CFT rules, including client identification, transaction monitoring, and reporting. Registration won’t guarantee permission to operate - it will just mean you’re not breaking the law. Future laws could add capital requirements, local office rules, or even licensing fees. Businesses should assume regulation will tighten and plan accordingly.
Why are so many crypto casinos based in Costa Rica?
Because Costa Rica offers both a low-barrier VASP registration process and a well-established gaming license framework. Many operators combine the two - getting a gaming license from the government while registering as a VASP with SUGEF. This combo allows them to accept crypto payments, run online casinos, and avoid the strict licensing rules of Europe or the U.S. It’s the cheapest and fastest route in Latin America.
