About the regulation of crypto companies in Costa Rica
Costa Rica has adopted a laissez-faire approach to cryptocurrency businesses. Still, there are national institutions potentially involved in the lifespan of a crypto business in Costa Rica:

The National Registry (Registro Nacional) who keeps information about legal entities;
The SUGEF (financial regulator) for companies issuing financial instruments such as security tokens;
The Central Bank of Costa Rica (Banco Central de Costa Rica).
The Costa Rica crypto permit requires that the company operates lawfully, in compliance with the regulations and laws, set by the institutions listed above.

In the past years, as the crypto industry grew and most crypto licenses hardened their conditions, Costa Rica gained traction as one of the very best jurisdictions to start from scratch. Startups looking for the cheapest crypto license and the simplest environment for an effective start have massively chosen Costa Rica for their operations.

Especially, the popular framework of the Costa Rica gaming license can synergize with its VASP license for GameFi and crypto casinos willing to operate fast and efficiently.

The requirements to get a cryptocurrency license in Costa Rica are very low, with no deposited share capital and no obligation of having a local office and director. It is advised to follow the FATF Recommendations on AML-CFT and KYC to avoid potentially serious consequences. Rengang can assist in ensuring the legal protection of your crypto company in Costa Rica by providing you with a dedicated set of documents, policies, guidelines and forms for your business.

What is the process to get the Costa Rica crypto license?
The incorporation of a Costa Rica crypto company is the fastest way to form a legal entity for a VASP in 2024. The whole process’ duration can range from one business week, to about six weeks in the case of a full set-up including a corporate account and a complete bundle of legal policies and documents.

The complete process is easily broken down into three separate steps: the legal preparation for the good conduct of the crypto activity, the actual company formation and corporate structuring, and finally the opening of corporate accounts (if relevant).

Costa Rica doesn’t enforce economic substance requirements for crypto companies. Though a legal address is necessary (Rengang provides its own to its clients), there is no need for a local director, local compliance officer and local office space.

The proper formation of a crypto licensed Costa Rica company necessitates the drafting of proper legal documents, such as company policies, compliance guidelines, legal disclaimers to the general public, etc. Though not mandatory, such documentation provides vital guidelines for the lawful operation of a crypto business and protects all parties involved from wrongdoings and from serious breaches of the law.

Most notably, this helps in demonstrating a serious conduct of the company’s operations, which is necessary for projects willing to open a corporate bank account for their Costa Rican crypto licensed company.

How to get a crypto gambling license in Costa Rica?
The most popular business model in Costa Rica, tightly linked to the gambling license in Costa Rica, is GameFi projects, web3 games and crypto casinos. Costa Rica provides the perfect environment for such innovative ideas to flourish and gain traction with minimal hassle.

ICO, IEO, ITO, INO and the likes are also effectively conducted from Costa Rica, thanks to the permissive regulation. One shall however ensure that the issued cryptocurrency absolutely does not qualify as a security token, else it would be subject to registration and licensing to the SUGEF, the financial authority of Costa Rica.

Types of activities performed by a crypto company in Costa Rica
Costa Rica crypto license allows for all the widespread business models and activities, such as:

Crypto-to-crypto exchanges;
Crypto-to-fiat exchanges;
OTC Crypto exchange;
Custodial services;
Crypto mining;
ICO/ITO (when the token is not classified as a security).
In addition, decentralized projects such as DeFi protocols, decentralized exchange platforms void of on-ramping services, decentralized autonomous organizations (DAOs), and NFT issuers are increasingly choosing Costa Rica to base their operations.

Taxation of cryptocurrencies in Costa Rica
Costa Rica has a rather lenient taxation regime when it comes to crypto companies. However, in order to benefit from the available incentives, a company must conduct its operations strictly outside the country. If that’s the case, the corporate income tax on blockchain activities is 0%.

At the same time, if the activities are conducted within Costa Rica, the corporate income tax will be as high as 30%. The capital gains tax for companies is also at 30%.

If you hold cryptocurrencies as an investment and realize a profit from selling them, this gain is generally subject to the capital gains tax.