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FinTechs belonging to this category offer financial services using crypto currencies. This category also includes FinTechs utilising blockchain and distributed ledger technologies (DLT) upon which Bitcoin and Ethereum are based, among others. FinTechs develop and do research in this field in order to create new services – e.g. crypto currency exchange markets, wallet providers, NFTs-related services, new payment services, 'smart contracts' or new clearing and settling services.
Introduction
Attitude of the country towards financial services using crypto currencies
The Central Bank of Costa Rica (BCCR) established that the use of crypto assets in Costa Rica is not prohibited by law, therefore it is allowed. However, the BCCR warned that they do not represent legal tender money so they should not be accepted as a form of payment. This has generated throughout the country the use of these payment methods. There are even records of real estate transactions in the country with the use of crypto assets.
Legal affairs
Obligations and requirements to provide financial services using crypto currencies described above
In Costa Rica, the circulation and exchange of crypto assets (as long as they are used for lawful purposes) are permitted activities, as they have not been expressly prohibited by law. Investment in crypto assets would be protected by the principle of freedom (articles 28, 45 and 46 of the Political Constitution), as long as the law does not provide otherwise for reasons of public order. On the other hand, as in other countries (with the recent exception of El Salvador), in Costa Rica crypto assets do not represent legal tender; subsequently, the BCCR does not recommend these to be accepted as a form of payment by citizens.
Thus, although its use is allowed in Costa Rica, whoever wishes to acquire these assets does so at their own risk. Therefore, it is important that those who decide to acquire this type of digital assets are well informed about their characteristics and the risks they entail. A consumer who voluntarily decides to invest his money in them can do so, but the person must be clear that he or she does not have legal instances to seek compensation for an eventual loss of capital caused by the high volatility of these assets.
On the other hand, recently the Ministry of Finance indicated, that under the current legal system, the use of crypto currencies for the payment of tax obligations is not viable. However, the General Directorate of Taxation (DGT) issued Office N° MH-DGT-OF-0460-2023, which considers that cryptocurrencies, not being authorized as legal tender by the Central Bank of Costa Rica, must be conceptualized as virtual assets (intangible assets). These assets are subject to the Income Tax (ISU) or the Tax on Capital Income and Capital Gains and Losses (IRCGPC), depending on the activity carried out by the taxpayer or the transactions they perform.