Self-custodial wallet / non-custodial software in Costa Rica
Publisher of software where users hold their own private keys. The publisher never holds, controls, or has access to user funds.
Self-custodial wallet is permitted in Costa Rica with no licensing burden.
Verdict Details
- Permitted
- yes
- Local entity required
- No
- Licensing burden
- None
- Last updated
- 2026-07-13
AML Obligations
- No AML obligations attach because a pure non-custodial wallet publisher does not hold, control, or access user private keys or funds — it is not an 'obligated subject' under Law 7786.
- The proposed VASP law (Expediente 22.837 / Law 10.363) targets providers that custody or exchange virtual assets, not software publishers that merely provide self-custodial tools.
- If the publisher also processes fiat payments as part of the wallet service, AML obligations would potentially attach under existing payment-service regulations.
Key Restrictions
- The publisher must not hold, control, or access users' private keys or funds — doing so would trigger classification as an obligated subject under Law 7786 (consistent with cr.licensing.status-if-the-custody-provider).
- If the wallet integrates fiat on-ramps/off-ramps where the publisher processes fiat payments, that activity may trigger AML obligations under existing payment-service regulations.
- No specific crypto license exists in Costa Rica; the activity is permissible by default as it does not fall within any regulated category.
Key Risks
- Regulatory evolution risk: Expediente 22.837/Law 10.363 could be amended or implemented by SUGEF regulation to expand the definition of VASP to include software publishers — this is a live legislative risk.
- Enforcement risk from SUGEF or criminal authorities if the wallet is used in illicit schemes and the publisher is perceived as facilitating value transfer (e.g., in-built swapping features could blur the line).
- Consumer-protection exposure: Costa Rican regulators have issued consistent warnings that virtual assets are unregulated and carry consumer risk — any consumer losses linked to the software could attract PR/regulatory scrutiny even if no legal violation exists.
- Tax ambiguity: Generating income in Costa Rica (e.g., through premium features or swap fees) may require local incorporation and tax registration; operating entirely offshore reduces but does not eliminate this risk.
Evidence
This verdict synthesizes the following facts. Each fact links to its primary source(s).
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.
Status: If the custody provider holds virtual assets on behalf of clients and/or provides services that enable the transfer or exchange of these assets, they would likely also fall under the "obligated subject" category, especially if they control the private keys for clients.
Law No. 7786, "Law on Narcotics, Psychotropic Substances, Drugs of Unauthorized Use, Related Activities, Money Laundering and Financing of Terrorism" (Ley sobre Estupefacientes, Sustancias Psicotrópicas, Drogas de Uso No Autorizado, Actividades Conexas, Legitimación de Capitales y Financiamiento al Terrorismo), as amended. This is Costa Rica's foundational AML/CFT law.
Evidence fact cr.amendments.expediente-22837-proposed-law-on not found (may have been renamed).
If purely crypto-to-crypto transactions (e.g., facilitating payments in crypto without fiat conversion): This remains a grey area in many jurisdictions without specific VASP licensing. However, the global trend is to bring such services under AML/CFT scrutiny if they involve value transfer and could be used for illicit purposes. SUGEF's interpretation would be key.
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.
November 2021: BCCR reiterates that cryptocurrencies are not legal tender in Costa Rica and highlights risks associated with their use.
Verdict Attribution
- Source:
- AI-Generated · Unreviewed
- AI synthesized:
- 2026-07-13 (deepseek-chat)
- Last updated:
- 2026-07-13
- Confidence:
- high
This verdict was produced by an AI model from the underlying facts. Confirm with counsel before relying on it for material decisions.
Yes — a publisher of self-custodial wallet software can operate in Costa Rica without triggering VASP classification or AML obligations, provided it never holds, controls, or accesses user private keys or funds, and does not process fiat payments on its own account.
Questions this verdict aims to answer
- Does software publishing trigger VASP / MSB classification?
- Do AML obligations attach when no custody exists?
- What disclosure or consumer-protection rules apply?