How Costa Ricans Use Crypto Without Regulations

Costa Ricans don’t wait for permission to use crypto. There’s no official law saying they can’t, and that’s exactly how they’ve built a thriving digital currency culture - not because they’re breaking rules, but because there are no rules yet.

No Central Bank Approval Needed

The Central Bank of Costa Rica made it clear in 2024: Bitcoin, Ethereum, and other cryptocurrencies aren’t money. They’re not legal tender. They’re not foreign currency. They’re just digital assets. And that’s okay.

That statement didn’t shut down crypto use - it freed it. Without the legal gray zone of "is this allowed?" Costa Ricans treated crypto like any other tool. If you can send money digitally, you can send Bitcoin. If you can buy something online, you can pay with USDT. No license. No paperwork. Just a wallet and a connection.

How People Actually Use It

You won’t find crypto ATMs on every corner, but you’ll find people using it every day.

• Freelancers in San José get paid in Bitcoin or USDC from clients in the U.S. or Europe - no wire fees, no 5-day delays.
• Small shop owners in Tamarindo accept USDT for coffee, surfboard rentals, or yoga classes. Customers scan a QR code. The owner gets pesos in their bank account within minutes via a local exchange.
• Families send remittances to relatives in Nicaragua or El Salvador using Ripple’s XRP. It’s cheaper than Western Union and faster than bank transfers.
• Artists mint NFTs of their paintings and sell them on OpenSea. No government form. No tax declaration required - yet.

There’s no central registry for crypto wallets. No one asks for your ID to buy $500 worth of ETH. That’s not because people are hiding - it’s because no law says they have to show it.

The Business Side: Crypto Startups Thrive

Costa Rica has become a quiet hub for crypto startups. Why? Because it’s easy to start a company here.

You register your business with the Registro Nacional. You get a tax ID. You open a bank account - and this is the hard part. Most banks still hesitate to work with crypto firms. But some do. And those that don’t? You use digital banks like N26 or Revolut, or partner with a fintech that already has a banking relationship.

Companies like CryptoCosta and BitPay Costa Rica operate legally by following general financial rules: they know their customers, they report suspicious activity, and they keep records. They don’t need a "crypto license" - they just follow anti-money laundering rules that already exist for money changers and payment processors.

Initial Coin Offerings (ICOs) are allowed too - as long as the tokens aren’t securities. A startup can raise funds by selling a utility token for access to a future app. No SEC-style registration. No prospectus. Just a whitepaper and a website.

Taxes? Still a Gray Area

The government hasn’t said whether crypto gains are taxable. So most people don’t report them.

There’s no official guidance on capital gains, mining income, or staking rewards. The tax authority (Dirección General de Tributación) hasn’t issued a single ruling on crypto since 2018. That doesn’t mean it’s legal - it just means no one’s enforcing anything.

Some businesses, especially larger exchanges, voluntarily report income and pay corporate taxes. But individuals? Most treat crypto like cash. Buy low, sell high, spend the pesos. No one asks where the money came from.

What’s Changing in 2025

In July 2025, Costa Rica’s Legislative Assembly passed the first debate of Bill 22.837. This isn’t a ban. It’s a shift.

The bill defines Virtual Asset Service Providers (VASPs) - that’s exchanges, wallet providers, and token issuers. It says they must register with SUGEF, the financial regulator. They’ll need to verify users, track transactions, and report risky activity.

But here’s the catch: registration isn’t approval. It’s compliance. You don’t get a license to operate. You just prove you’re not laundering money.

For everyday users, this won’t change much. You can still buy Bitcoin at a local kiosk. You can still send USDT to your cousin. But if you run a crypto exchange? You’ll need to upgrade your KYC system. You’ll need to log every transaction. You’ll need to prove you’re not helping criminals.

Why It Works - And Why It Might Not Last

Costa Rica’s crypto scene thrives because of what’s missing: red tape.

Compare it to neighboring countries. In Panama, you need a special license. In Colombia, you need to report every transaction over $1,000. In Mexico, exchanges must be registered with the central bank.

Costa Rica didn’t say "yes" to crypto. It just didn’t say "no." That’s why people trust it. It’s not about rebellion. It’s about practicality. Crypto solves real problems: high fees, slow transfers, and unreliable banks. And until the government steps in, it works.

But the tide is turning. The proposed law is a sign that Costa Rica wants to be taken seriously by international financial institutions. It wants to avoid being blacklisted by the FATF. It wants to attract investment - but on its own terms.

For now, though, if you walk into a café in Heredia and pay with ETH, the barista won’t ask for your ID. She’ll just smile and say, "Gracias, en BTC."

What’s Next for Crypto in Costa Rica

The next 12 months will be critical. If the bill passes its second and third readings - expected by early 2026 - VASPs will have 180 days to comply. That means:

• Exchanges will start requiring ID verification for all users.
• Wallet providers will need to log IP addresses and device fingerprints.
• Businesses that didn’t register will be forced to shut down or risk fines.

But individual users? They’ll still be able to hold, send, and spend crypto. The law targets service providers, not people. As long as you’re not running a business, you’re still in the clear.

Some Costa Ricans are already preparing. They’re moving funds to non-custodial wallets. They’re using peer-to-peer platforms like Paxful and LocalBitcoins. They’re avoiding centralized exchanges that might be forced to comply with new rules.

Others are betting on the future. They’re applying for VASP registration. They’re hiring compliance officers. They’re building systems that will work even after the law changes.

Final Thought: Freedom Isn’t Lawlessness

Costa Ricans aren’t using crypto because they’re dodging the system. They’re using it because the system never caught up.

They’ve turned a legal vacuum into an opportunity - not by breaking rules, but by working around the absence of them. That’s not chaos. That’s innovation.

When the regulations finally arrive, they won’t kill crypto. They’ll just change how it’s used. And Costa Ricans? They’ve already learned how to adapt.