Crypto Business Compliance Checker
Check Your Crypto Business Compliance
Determine if your business activities require registration with SUGEF under Costa Rica's new crypto regulations (Bill 22.837).
Costa Rica doesn’t have a law that says you can’t use Bitcoin. It also doesn’t have a law that says you can. That’s the core of the legal gray area for cryptocurrency in Costa Rica - and it’s exactly why so many crypto startups are setting up shop here.
What Does the Law Actually Say?
The Central Bank of Costa Rica made it clear back in 2017: Bitcoin and other cryptocurrencies are not legal tender. They’re not money in the eyes of the government. You can’t pay your taxes with them. You can’t use them to buy a house through a bank-financed mortgage. But here’s the twist - no one’s stopping you from using them in private deals. If you and a friend agree to trade Ethereum for a used car, that’s perfectly fine. The law doesn’t touch it. That’s not regulation. That’s silence. And in the world of crypto, silence can be louder than a ban.The 2025 Legislative Shift
On July 2, 2025, Costa Rica’s Legislative Assembly took its first real step toward closing that silence. Bill 22.837 passed its first debate. It’s not law yet - but it’s moving fast. The bill doesn’t legalize crypto. It doesn’t create a crypto license. Instead, it forces anyone offering crypto services - exchanges, wallets, custody platforms - to register with SUGEF, the country’s financial regulator. Under this new framework, a Virtual Asset Service Provider (VASP) is anyone who:- Exchanges crypto for colones or dollars
- Transfers crypto between users
- Stores crypto for others
- Issues or markets new tokens
Why This Isn’t a License
Here’s the catch: SUGEF says registration doesn’t mean approval. You’re not getting a green light. You’re just being added to a watchlist. The government isn’t saying, “You’re good to go.” It’s saying, “We’re watching you. Don’t mess up.” That’s why businesses still operate in a gray zone. Even if you’re registered, you have no legal protection if a client sues you. No clear rules on how to handle token sales. No guidance on whether NFTs count as securities. No court rulings to reference. You’re flying blind - but the radar is turning on.
Who’s Already Operating Here?
Costa Rica has become a magnet for crypto startups that want low cost and low friction. You won’t find a country with fewer barriers:- No minimum capital requirement to start a crypto business
- No need to have local directors or physical offices
- No licensing fees beyond standard corporate registration
The Hidden Risks
All this freedom comes with a price. The gray area means you’re always one step from trouble. If a transaction looks like money laundering - even if it’s not - your bank can freeze your account. SUGEF can demand records. The tax authority can question your income. And because there’s no clear law, courts have no precedent to follow. You could lose everything in a legal battle that takes years to resolve - and you won’t even know if you broke a rule. Banks in Costa Rica are nervous. Some won’t touch crypto companies at all. Others will work with you - but only if you jump through hoops: detailed business plans, personal guarantees from owners, proof of foreign revenue streams. It’s not impossible. It’s just expensive and slow. And then there’s the tax question. The government hasn’t said how crypto income is taxed. Is it capital gains? Business income? Foreign earnings? No guidance. Most companies treat it as business income and pay corporate taxes. But if the tax authority later decides it’s personal income, you could owe back taxes, penalties, and interest.
Why Costa Rica Still Wins
Despite the risks, Costa Rica keeps pulling in crypto businesses - and for good reason.- Political stability: Unlike neighbors with sudden policy flips, Costa Rica has had peaceful democratic transitions for decades.
- Infrastructure: Reliable internet, modern co-working spaces, and English-speaking talent make it easy to run a tech business.
- Tax advantages: No capital gains tax on foreign-sourced income. Low corporate tax rates. No wealth tax.
- Speed: Company registration takes 3-5 days. Bank account setup? That’s the bottleneck - but even that’s faster than in Panama or Uruguay.
What Should You Do?
If you’re thinking of launching a crypto business in Costa Rica:- Register your company with the National Registry. Get a legal address. Open a corporate bank account.
- Prepare for SUGEF registration. Build your AML/KYC system now - don’t wait for the law to pass.
- Consult a local lawyer who’s worked with crypto clients. Don’t rely on templates from other countries.
- Assume the gray area will shrink. Build compliance into your model from day one.
- Keep all records. Every transaction. Every client ID. Every communication. You’ll need them.
What’s Next?
Bill 22.837 still needs two more debates and presidential approval. That could take months - or even a year. But once it’s law, Costa Rica will no longer be a true gray zone. It’ll be a lightly regulated space - still open, still easy, but with clear rules you must follow. The future isn’t prohibition. It’s oversight. And the businesses that prepare now will be the ones that survive.Is cryptocurrency legal in Costa Rica?
Yes, but not as legal tender. You can use Bitcoin, Ethereum, and other cryptocurrencies for private transactions without breaking the law. However, the government doesn’t recognize them as money, and no official system supports them. Businesses can operate, but they do so without legal protection or clear guidelines.
Do I need a license to run a crypto exchange in Costa Rica?
Not yet - but you will soon. As of July 2025, a new bill requires all Virtual Asset Service Providers (VASPs) to register with SUGEF. Registration isn’t a license to operate - it’s a compliance requirement to prevent money laundering. If you’re running an exchange, wallet, or custody service, you must register once the law passes.
Can I open a bank account for my crypto business in Costa Rica?
It’s possible, but difficult. Many banks avoid crypto businesses due to regulatory uncertainty. Those that do work with them require extensive documentation: business plans, proof of foreign income, personal guarantees, and detailed AML procedures. Expect delays and higher scrutiny than for traditional businesses.
Are crypto profits taxed in Costa Rica?
There’s no official guidance, but most crypto businesses treat gains as business income and pay corporate taxes. Foreign-sourced income isn’t taxed. However, the tax authority hasn’t ruled on whether crypto trading is capital gains or business revenue. This uncertainty means you could face back taxes if the government changes its stance later.
Why are so many crypto startups choosing Costa Rica?
Because it’s one of the cheapest and fastest places in Latin America to set up. No minimum capital, no local director requirement, no special crypto license fees, and low corporate taxes. Combined with political stability and good internet infrastructure, it’s ideal for startups looking to launch quickly without heavy compliance costs - for now.
What happens if the new crypto law passes?
The gray area won’t disappear - but it will shrink. VASPs will have to register with SUGEF and follow strict AML/KYC rules. The government won’t endorse crypto, but it will demand accountability. Businesses that ignored compliance will face fines or shutdowns. Those that prepared early will keep operating with fewer surprises.
Is Costa Rica safer for crypto than Panama or Colombia?
For now, yes - but only if you’re a small startup. Panama has stricter banking rules and more enforcement. Colombia has formal licensing requirements. Costa Rica still offers lower barriers to entry. But Panama and Colombia have clearer laws. Costa Rica’s advantage is speed and cost - not legal certainty. As laws tighten, that gap will narrow.
Tatiana Rodriguez
29 11 25 / 21:27 PMOkay so imagine this: you’re sipping coconut water on a beach in Tamarindo, your laptop open to a crypto dashboard, and you just sent 5 ETH to a dude in Lisbon for a hand-carved wooden surfboard… and no one’s coming to arrest you. That’s Costa Rica. No law says you can’t. No law says you can. It’s like the government shrugged and said, ‘Do your thing, just don’t make it messy.’ And honestly? That’s the most beautiful form of libertarianism I’ve ever seen. People think regulation = safety. But sometimes silence is the ultimate freedom. Until it’s not. And it’s not gonna last forever.
But let’s be real - the second someone gets hacked, or a crypto casino gets flagged for money laundering, the whole house of cards comes down. And suddenly, the ‘gray area’ becomes a crime scene. The bill isn’t about control - it’s about damage control. SUGEF doesn’t want to ban crypto. They just don’t want to be blamed when it blows up in their faces.
I’ve talked to founders who moved here from Ukraine and Nigeria. They didn’t come for the beaches. They came because in their home countries, the banks wouldn’t even return their emails. Here? You get a company registered in 72 hours. No background checks. No ‘prove you’re not a terrorist’ forms. Just paperwork and a prayer. And that’s the magic. Not the tech. Not the blockchain. The sheer, unadulterated *speed*.
But here’s the twist - the people who thrive here aren’t the ones trying to ‘disrupt finance.’ They’re the ones who treat this like a summer rental. Rent the infrastructure, run the business, cash out before the law catches up. It’s not a home. It’s a launchpad. And that’s why the tax question is so terrifying. No one knows if your crypto profits are business income or personal gains. So you pay taxes like a corporation… but if the IRS or the Costa Rican tax authority decides later it’s personal? You owe back taxes, penalties, interest, and maybe a new passport.
And don’t get me started on banks. Some will work with you if you bring them a business plan thicker than War and Peace. Personal guarantees? Check. Proof of foreign revenue? Check. Notarized letters from your grandma saying you’re not laundering drugs? Not yet… but it’s coming. The banks are terrified. And they’re making it expensive to be brave.
But still. I’d rather be in this gray zone than in a country where you need a license to breathe. At least here, you can move. You can build. You can experiment. And if you’re smart? You build your exit strategy before the cameras turn on.
ashi chopra
30 11 25 / 01:57 AMThis is so beautifully written. I’m from India and honestly, I’ve been watching this with awe. The fact that Costa Rica lets people operate without drowning them in red tape… it’s rare. I wish we had even a fraction of this openness. Not everyone here is a criminal. Not every crypto business is a scam. Sometimes, silence is just space - space to grow, to learn, to fail safely. I hope they keep it that way a little longer.
Darlene Johnson
30 11 25 / 04:34 AMOf course they’re not regulating it. The government is in on it. This is a front for the CIA’s crypto laundering ops. You think they let startups set up shop here for ‘low cost’? Nah. They’re using these ‘GameFi platforms’ to move black money through NFTs and ‘token sales’ while pretending to be ‘innovative.’ The ‘registration’? That’s just so they can track everyone. They’re building a digital surveillance state under the guise of ‘anti-money laundering.’ Wake up. This isn’t freedom. It’s control with a smile.
Ivanna Faith
1 12 25 / 07:20 AMSo… no license? But you gotta register? So it’s like… a registration license? 🤔 I’m confused. Also why are people so shocked? Of course they’re gonna regulate it. Everything becomes regulated eventually. Even love. 💔
Akash Kumar Yadav
2 12 25 / 06:30 AMCosta Rica? Pfft. India has 1.4 billion people and we don’t need some tiny country to show us how to do crypto. We have our own blockchain initiatives. We have our own tech. Why are we even talking about this? It’s just another Western fantasy. You think your ‘gray area’ is genius? We’ve been running crypto exchanges in Mumbai since 2017 with zero regulation - and no one’s crying. We don’t need your SUGEF. We don’t need your ‘AML.’ We have discipline. You have chaos.
alex bolduin
2 12 25 / 21:37 PMThere’s something poetic about a country that doesn’t try to own your money. The law doesn’t say you can’t use Bitcoin - so you do. It’s not rebellion. It’s just… living. Like breathing. No permit needed. The government isn’t stopping you. It’s just watching. And maybe that’s the most honest form of governance. Not control. Not permission. Just presence. Letting things happen. Letting people figure it out. The problem isn’t the gray area. The problem is we’re scared of gray. We want black and white. But life? Life is gray. And crypto? It’s the most human thing we’ve built yet - messy, unregulated, alive.
Vidyut Arcot
4 12 25 / 15:20 PMFor anyone thinking of starting here - don’t wait for the law to pass. Start building your compliance stack today. KYC? Do it. Transaction logs? Keep them. Lawyer? Hire one who’s actually worked with crypto, not just corporate law. This isn’t a gamble. It’s a marathon. The gray area is shrinking, but the window is still open. Walk through it now - not when it’s a door slamming shut. You’ve got time. Use it wisely.