Regulation of Cryptocurrencies in Costa Rica

Some analysts call Costa Rica a “crypto paradise.” This is due to the following reasons.

Why Costa Rica Is a Crypto Paradise

The first reason

Costa Rica is one of the few countries in the world where companies are allowed to pay their employees in cryptocurrency. However, the volatility of cryptocurrencies causes certain difficulties both with the payment of taxes associated with digital assets, and social contributions from wages if they are paid in cryptocurrency. 

It should also be noted that the legal minimum wage must be paid in fiat. Anything above the minimum set by the state can be paid in any products and goods, which include cryptocurrencies. 

And only an employee can make a decision about the possibility of receiving payment in digital assets.

The second reason

The second reason why Costa Rica is considered to be a crypto-haven is that its citizens widely use cryptocurrencies in the country. 

Although cryptocurrency is not a means of payment, but refers to goods, digital assets are accepted in many stores even though transactions with cryptocurrency cannot be carried out through the National System of Electronic Payment (SINPE).

Despite the fact that the central bank of the country has repeatedly warned citizens about the risks associated with digital assets, there is a high demand for businesses to include cryptocurrencies in their payment systems and accept them as payment.

The third reason

Costa Rica offers technology companies a number of competitive advantages that neighboring Latin American countries cannot offer. 

The country has formed one of the best online infrastructures in Latin America. A fiber optic network connects the entire country, providing optimal internet connectivity for technology companies. 

Costa Rica offers cryptocurrency miners competitive advantages and excellent working conditions, as the country has one of the highest rates of renewable energy production in the world. The abundance of electricity in Costa Rica is important for miners.

The fourth reason

The policy pursued by the government and the central bank of Costa Rica regarding cryptocurrencies is to refrain from hindering the growth of technology. 

This contributes to the creation of a favorable legal environment for cryptocurrency enterprises. The state authorities see the potential in blockchain technology and do not hinder the development of the technology.

This policy has allowed cryptocurrency firms to flourish in Costa Rica, thereby turning it into a “crypto paradise".Thanks to the loyal attitude to cryptocurrencies, residents of Costa Rica are increasingly using cryptocurrency, and thanks to  OWNR Wallet, you can now buy cryptocurrency with your credit/debit card.