Why Are Crypto Projects Increasingly Choosing A Crypto License In Costa Rica?

An increasingly popular offshore hub for FinTech activities, Costa Rica remains at the centre of attention for crypto startups and established projects. It is a frequent choice due to its light framework, absence of taxation on crypto activities, and a swift registration process. Those who want to benefit from the local business environment must get acquainted with the jurisdiction and the local licensing rules first. 

What Makes Costa Rica an Attractive Jurisdiction for Crypto Projects?

Costa Rica has earned a reputation as a politically stable, business-friendly nation with strong digital infrastructure and a highly skilled, tech-oriented workforce. Its strategic location and time zone make it particularly appealing for companies targeting both North and South American markets. These are just some of the benefits that the Costa Rica crypto license can give to emerging crypto projects. 

The country’s openness to fintech and blockchain innovation, combined with its flexible business incorporation process, makes it a practical choice for emerging crypto ventures. Additionally, Costa Rica’s culture of embracing new technologies has fostered a growing local community of blockchain developers, investors, and enthusiasts.

Is There a Formal Crypto Licensing Framework in Costa Rica?

So far, Costa Rica has not established a formal framework for licensing and regulating crypto businesses. There have been measures taken, just like the introduction of a would require Virtual Asset Service Providers (VASPs) to register with SUGEF (the financial supervisor) and comply with AML/CFT obligations, but until this bill is enacted, crypto activities are allowed under the general law. The key compliance steps to take are to draft and align the company’s policies with the FATF Recommendations, prepare customer complaint handling forms, and draft the Terms of Service, a Risk Disclosure Statement, and a Privacy Policy. 

How Does Costa Rica’s Regulatory Approach Compare to Other Countries?

Costa Rica takes what could be called a “permissive but cautious” approach. Crypto is not banned, but it is not considered legal tender, and the central bank stresses that transactions are carried out privately and at the user’s own risk. Compared with El Salvador, which adopted bitcoin as legal tender in 2021, Costa Rica’s stance is more conservative and avoids integrating crypto into the national monetary system. Compared with the European Union’s MiCA, Costa Rica is far more lightweight, since it does not yet impose licensing, passporting, or reserve requirements. In Latin America, this puts Costa Rica closer to Colombia, Peru, or Panama, which have exploratory or registration-focused models rather than hard regulation. For startups, this means more freedom than in Europe but less certainty than in jurisdictions with well-defined frameworks.

What Are the Main Advantages for Crypto Startups Operating from Costa Rica?

Costa Rica, as an offshore location, presents a considerable set of benefits, especially for startups looking for cost-effective licensing solutions. The main advantages of the jurisdiction include:

• Regulatory openness. No dedicated VASP license is required yet, allowing startups to incorporate and begin operations quickly with fewer upfront hurdles.
• Central bank stance. While crypto is not legal tender, private use is permitted, which enables businesses to transact with willing partners and clients.
• Business-friendly environment. Costa Rica offers skilled talent, solid telecom infrastructure, and strategic proximity to North and South America.
• Room for innovation. The absence of rigid regulatory frameworks provides flexibility to experiment and develop products before heavier compliance requirements arrive.
• Early-mover positioning. With a formal VASP registration regime on the horizon, operating now gives companies the advantage of establishing local presence before new rules tighten the market.

Now is the best time to consider registration in Costa Rica: the jurisdiction is reputable enough compared to its many counterparts, but, at the same time, is considerably less demanding towards applicants. 

Are There Any Tax Benefits or Incentives for Crypto Companies in Costa Rica?

Another major benefit of Costa Rica for offshore company incorporation is the tax incentives it offers. Like many offshore jurisdictions, Costa Rica allows blockchain companies to pay no corporate taxes, as long as they conduct their activities and offer services outside the country. Having a 0% tax imposed, company owners can instead redirect their finances to growing the business and expanding globally. 

How Do Costa Rican Laws Support Blockchain Innovation and Decentralized Finance?

While Costa Rica has no specific laws designed for decentralized finance (DeFi), its legal environment is generally supportive of blockchain use. Current frameworks allow private transactions in crypto, recognize digital assets as intangible property, and enforce contracts freely made between parties. 

The pending bill on VASP registration is designed around FATF standards, focusing on AML/CFT, which provides legitimacy without imposing banking-level requirements. This means startups can operate in a recognized legal space while preparing for eventual oversight. Although the country does not yet offer regulatory sandboxes or special blockchain programs, the open-ended structure of its laws leaves room for innovation. In effect, Costa Rica provides enough flexibility for DeFi projects to test products while staying compliant with basic financial safeguards.

What Challenges Should Crypto Projects Be Aware of When Choosing Costa Rica?

The biggest challenge is regulatory uncertainty, since the upcoming SUGEF framework could introduce new compliance obligations at any time. Companies may face requirements for registration, customer due diligence, and reporting similar to FATF’s Travel Rule, which could alter cost structures and operational design. 

Banking access is another hurdle: because crypto is not legal tender, traditional banks often apply strict due diligence or even deny services to crypto firms. Additionally, the lack of dedicated consumer protection measures means startups must self-regulate and establish trust with users to compete. Founders should be aware that while Costa Rica is generally more permissive than most onshore countries, the environment is not without hidden costs and risks.

Will Costa Rica Remain a Strategic Hub for Crypto Licensing in the Coming Years?

In the short term, Costa Rica remains attractive because companies can incorporate and operate without a formal license, which is faster and cheaper than in jurisdictions with strict frameworks. At the same time, the strategic value of Costa Rica depends largely on whether the government keeps regulations simple and focused on registration rather than licensing. If it does, Costa Rica is likely to stay a hub for crypto startups in Latin America for years to come.