Centralized exchange in Costa Rica

Virtual asset service providers in Costa Rica are not yet explicitly classified as 'obligated subjects' under Law 7786; the proposed amendment (Expediente 22.837) that would explicitly include them remains pending and has faced procedural setbacks.

Registration: With SUGEF as an "obligated subject" (if the activity falls under their scope) or potentially with the Financial Intelligence Unit (Unidad de Inteligencia Financiera - UIF) depending on the exact classification.

Full AML/KYC Program: Implementation of robust Know Your Customer (KYC), Customer Due Diligence (CDD), Enhanced Due Diligence (EDD), and Transaction Monitoring policies and procedures.

AML Officer: Appointment of a designated AML Compliance Officer.

Reporting: Obligation to report suspicious transactions (SARs/STRs) to the UIF.

Maintenance of transaction and client records for a specified period is now predominantly governed by electronic invoicing systems and specific monthly reporting obligations to the General Directorate of Taxation, fundamentally altering the methods and specific requirements for record-keeping in Costa Rica.

Conduct a comprehensive money laundering risk assessment.

Capital Requirements: There are no specific capital requirements for crypto-specific licenses as such licenses don't exist. However:

If an entity's operations are interpreted as falling under the scope of existing financial institution activities (e.g., holding client funds, providing certain payment services in fiat), then the capital requirements applicable to traditional financial institutions or payment service providers regulated by SUGEF would apply. These can vary significantly depending on the type of financial service.

Local Presence: Generally, any company operating and generating income in Costa Rica needs to be incorporated locally and have a local registered office and local representation (e.g., a local legal representative). This is standard corporate law, not crypto-specific. For AML purposes, having a local AML officer is also typical.

Law No. 10.363, "Law on the Regulation of Virtual Asset Service Providers" (Ley de Regulación de Proveedores de Servicios de Activos Virtuales). This law established the legal framework for VASPs, bringing them under Law 7786's AML/CFT scope. However, the operational AML/CFT obligations and registration mandate became enforceable only after SUGEF's implementing regulation (SUGEF 2-2024) came into effect on November 16, 2024.

Regulations issued by SUGEF: While Law 10.363 sets the legal framework, the Superintendent General of Financial Entities (SUGEF) is responsible for developing specific regulations. The key implementing regulation, SUGEF 2-2024 ("Reglamento para la Inscripción y Supervisión de los Proveedores de Servicios de Activos Virtuales"), was issued and became effective on November 16, 2024. It details registration, CDD, transaction monitoring, STR, and record-keeping requirements for VASPs.

Identification and Verification of Customer Identity:

Ongoing Due Diligence:

Risk-Based Approach (RBA): VASPs must apply CDD measures on a risk-sensitive basis. This means applying enhanced due diligence (EDD) for higher-risk customers, transactions, or business relationships (e.g., Politically Exposed Persons (PEPs), cross-border correspondent relationships, complex/unusual transactions). Simplified due diligence (SDD) may be applied in specific lower-risk scenarios.

Trigger: Any transaction, attempted transaction, or activity where the VASP suspects or has reasonable grounds to suspect that the funds or assets are proceeds of criminal activity (including money laundering) or are related to terrorist financing.

Reporting Body: The report must be submitted to the Unidad de Inteligencia Financiera del Instituto Costarricense sobre Drogas (UIAD), which is Costa Rica's FIU.

No Tipping Off: VASPs and their employees are prohibited from disclosing to the customer or any third party that an STR has been, or will be, filed.

SUGEF Circular 001-2022 "Reglamento para la Inscripción y Supervisión de los Proveedores de Servicios de Activos Virtuales" (Regulation for the Registration and Supervision of Virtual Asset Service Providers). This circular directly addresses the registration and AML/CFT obligations of VASPs, including requirements for information sharing consistent with the Travel Rule. It was published in La Gaceta, the official Costa Rican government gazette.

Collection of Information (Art. 24): VASPs must obtain and maintain information on the originator and beneficiary for all virtual asset transfers equal to or greater than USD $1,000 (or its equivalent in other currencies or virtual assets), regardless of whether the other party is another VASP or an unhosted wallet. For transfers below this amount, only basic information (e.g., name of the client) is typically required.

Transmission of Information (Art. 25): For virtual asset transfers equal to or greater than USD $1,000 (or its equivalent in other currencies or virtual assets) to another regulated VASP, the sending VASP must securely transmit the required originator and beneficiary information to the receiving VASP.

For transfers to or from unhosted wallets, the VASP is responsible for collecting and retaining the information from its own customer, but cannot transmit information to an unhosted wallet directly.

Monetary fines: Proportional to the severity of the infringement and the VASP's size and revenue.

Suspension of operations: Temporary halt of activities.

Revocation of registration: Permanent loss of authorization to operate as a PSAV.

Regulator Name: Superintendencia General de Entidades Financieras (SUGEF)

September 2021: SUGEF Circular SGF-0036-2021 reiterates that virtual assets are not legal tender and are not regulated by SUGEF unless they fall under existing regulated activities.

January 2022: SUGEF continues to issue warnings regarding the risks of virtual assets.

Outcome: SUGEF maintains that virtual assets are not regulated financial products or services under its supervision. Financial institutions are advised to exercise extreme caution when dealing with virtual assets and to ensure compliance with existing AML/CFT regulations if handling any related transactions. This means that if a bank facilitates transactions involving crypto, it must still comply with its existing AML obligations.

Regulator Name: Banco Central de Costa Rica (BCCR)

November 2021: BCCR reiterates that cryptocurrencies are not legal tender in Costa Rica and highlights risks associated with their use.

Example (illustrative, not specific to last 3 years due to public data scarcity): News reports over the years have documented OIJ investigations into cybercrime and fraud where victims sent crypto to scammers, or where crypto was used to move illicit funds.

Outcome: Arrests, ongoing investigations, legal proceedings, and potential convictions for individuals involved in criminal activities. Assets, including cryptocurrencies, may be seized.