How Costa Ricans Use Crypto Without Regulations

Costa Ricans don’t wait for permission to use crypto. While most countries scramble to write rules around digital money, Costa Rica has done something unusual: they’ve built a thriving crypto economy without any specific laws governing it. No licensing. No official crypto exchanges. No government-approved wallets. Just people, businesses, and startups using Bitcoin, Ethereum, and other tokens like they’re cash - because in practice, they often are.

They treat crypto like cash, not a financial product

In San José, you’ll find small shops, cafes, and even street vendors accepting Bitcoin through QR codes. A local artisan sells handmade jewelry on Instagram and gets paid in USDT. A freelance designer in Heredia invoices clients in Ethereum and converts it to colones via peer-to-peer apps. No bank approval needed. No paperwork. No waiting days for a wire transfer.

Why does this work? Because Costa Rica doesn’t treat crypto as a separate financial instrument. It’s not banned. It’s not regulated. It’s just… not mentioned. So people use it under existing laws that already cover barter, foreign exchange, and digital payments. If you trade something of value for something else of value - whether it’s a coffee or a Bitcoin - the law doesn’t stop you. The Central Bank says crypto isn’t legal tender. But it never said you can’t use it.

Businesses operate in the gray zone - and it works

Crypto businesses in Costa Rica don’t need a special license. That’s not because they’re breaking the law. It’s because there’s no law saying they need one. A company can set up a crypto exchange, offer wallet services, or even run an NFT marketplace without registering with any government body. All they need is a standard business registration, a local bank account (if they can get one), and basic anti-money laundering practices.

But here’s the catch: banks are nervous. Many still refuse to open accounts for crypto firms. So companies use fintechs, foreign banks, or even third-party payment processors to move money. Some use PayPal or Wise to receive fiat from customers, then buy crypto on peer-to-peer platforms like Paxful or LocalBitcoins. Others partner with international exchanges that allow Costa Rican users to deposit via bank transfer.

It’s messy. It’s inefficient. But it’s legal. And it’s growing.

ICOs, NFTs, and tokenized assets are all fair game

Costa Rica doesn’t have securities laws that clearly define what counts as a token. So if you launch a token that’s meant to be a utility - like access to a future app or service - you don’t need to register with the financial regulator, SUGEF. That’s why you’ve seen local startups issue tokens for gaming platforms, loyalty programs, and even community solar projects.

NFTs? Totally legal. Artists mint digital art on OpenSea. Gamers trade in-game items using Solana. Collectors buy pixelated monkeys and rare sneakers. No one asks for permission. No one files a report. The government doesn’t track it.

Even tokenized real estate is happening. A small group of investors recently pooled funds to buy a piece of land in the Nicoya Peninsula. They split ownership into 100 blockchain tokens. Each token represents 1% of the property. Owners can sell their tokens privately. No notary. No government registry. Just a smart contract and a WhatsApp group.

People use crypto to bypass banking limits

Many Costa Ricans don’t trust banks. High fees. Slow transfers. Low interest. And for those who send money abroad - like migrant workers sending remittances to family - traditional services like Western Union charge 8-12% in fees. Crypto cuts that to under 2%.

A worker in the U.S. buys $500 in USDC on Coinbase, sends it to their sister’s MetaMask wallet in Cartago, and she cashes out via a local P2P trader for colones. Done in 20 minutes. No ID required beyond a phone number. No paperwork. No approval.

Even tourists use it. A Canadian traveler buys Bitcoin at a kiosk in Tamarindo, uses it to pay for a surf lesson, and leaves with a souvenir T-shirt. No credit card. No currency exchange. Just crypto.

The new law is coming - but it’s not a ban

In July 2025, Costa Rica’s Legislative Assembly passed the first debate of Bill 22.837. This isn’t a crackdown. It’s a formalization. The bill defines Virtual Asset Service Providers (VASPs) - exchanges, custodians, wallet providers - and says they must register with SUGEF. They’ll need KYC, transaction logs, and risk assessments. But here’s the key: registration is not permission. It’s just a way to track who’s operating.

The government isn’t trying to shut down crypto. They’re trying to make sure it doesn’t become a tool for criminals. That’s why they’re copying global standards from the Financial Action Task Force (FATF). It’s not about control. It’s about compliance.

And here’s the twist: most local crypto users won’t be affected. If you’re buying Bitcoin for personal use, holding it in a non-custodial wallet, or trading with a friend - you’re still invisible to the system. Only businesses that offer services to others will need to register.

Why this works better than regulation

Costa Rica’s approach isn’t accidental. It’s cultural. The country has a long history of informal economies - from street markets to cash-based services. People value autonomy. They distrust bureaucracy. And they’ve learned to make systems work without waiting for permission.

Compare this to neighboring countries. Panama has strict crypto licensing. El Salvador made Bitcoin legal tender - and now struggles with adoption. Costa Rica didn’t choose either extreme. They let the market decide.

The result? A thriving, organic crypto ecosystem. No government subsidies. No national wallet app. No mandatory adoption. Just real people solving real problems: sending money faster, paying less in fees, building businesses without red tape.

The risks are real - but so are the rewards

There’s no safety net. If a crypto exchange disappears, you lose your funds. If a P2P trader scams you, there’s no chargeback. If you send crypto to the wrong address, it’s gone forever.

But people know this. They’ve learned to be careful. They use hardware wallets. They verify addresses. They trade only with trusted contacts. They don’t store large sums on exchanges. They’ve built their own culture of responsibility - without any laws telling them to.

And that’s the real lesson. Crypto isn’t about regulation. It’s about trust. Costa Ricans trust each other more than they trust banks. They trust code more than they trust politicians. And that’s why crypto works here - even without rules.

What’s next for Costa Rica’s crypto scene?

The next 12 months will be critical. As the VASP law moves toward final approval, we’ll see more businesses register. We’ll see more banks start accepting crypto firms. We’ll see international exchanges open local offices.

But the core behavior won’t change. People will still buy Bitcoin to send money home. Artists will still mint NFTs. Developers will still build tokenized projects. The rules might tighten, but the spirit won’t. Costa Ricans don’t need permission to innovate. They just need a connection to the internet.