Costa Rica is positioned at 92nd place in Chainalysis’ Global Cryptocurrency Adoption Index 2023. The report emphasizes the widespread acceptance of cryptocurrencies, with numerous businesses embracing them as legitimate payment options. Costa Rica stands out with 6 Bitcoin ATMs catering to a population of only 5 million, reflecting a scenario where workers can opt to receive a portion of their wages in digital currency.

The rapid uptake of cryptocurrencies in Costa Rica has been notable, showcasing a favorable adjustment to blockchain technology. The country has emerged as a hotspot for cryptocurrencies, fostering a dynamic crypto ecosystem. Companies like Asos Blockchain play a pivotal role by uniting the nation’s top web3 developers. Events such as The Tico Blockchain Conference and the community-driven Crypto Cantina further underscore Costa Rica’s growing presence in the crypto sphere.

In terms of regulatory efforts, Costa Rica aims to position itself as a crypto-friendly destination with notably low tax rates. Congresswoman Johana Obando has introduced the Crypto Assets Market Law (MECA) with a primary focus on regulating the cryptocurrency market. The proposed legislation aims to provide clarity and protection to individuals and businesses engaged in crypto investments while creating an environment conducive to attracting capital.

Lawmakers advocate for the recognition of cryptocurrencies by the Costa Rican government, promoting the unrestricted ownership and usage of digital assets. The overarching objective is to allure foreign investors, fintech enterprises, tourists, and bolster job creation in the technology and tourism sectors for Costa Ricans.

Presently, the Central Bank of Costa Rica does not regulate cryptocurrencies, but they are deemed legal and accepted as valid payment instruments.

U.S. Government officials Anne Neuberger and Nathaniel Fick have raised concerns regarding the country’s approach to cryptocurrencies. Instances of ransom payments for kidnappings, extortion, and illicit transactions conducted through digital currencies have garnered attention. The anonymity and lack of traceability inherent in crypto transactions pose challenges, particularly in combating narcotics trafficking, human exploitation, cybercrime, and circumventing international sanctions.

While acknowledging the advantages of cryptocurrencies, Deputy Homeland Security Advisor Anne Neuberger stressed the importance of addressing the potential misuse of digital assets for unlawful activities. The officials underscore the need for proactive measures to mitigate risks associated with crypto transactions and uphold regulatory standards.