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Costa Rica’s Bitcoin Future: Legal Clampdown on the Horizon

2 mins
Updated by Bary Rahma
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In Brief

  • Costa Rica is considering a new law that may restrict its citizens' use of Bitcoin for everyday transactions, according to Jan3.
  • Concerns about effective Know Your Customer (KYC) and Anti-Money Laundering (AML) practices persist about the emerging industry.
  • However, there is optimism about the potential for robust crypto regulations in the future, with advocates pushing for Bitcoin's potential.
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Costa Rica is currently deliberating a proposed crypto law that may restrict its citizens’ ability to use Bitcoin for everyday transactions.

Jan3, a prominent Bitcoin technology firm, disclosed this development regarding the Latin American nation.

Jan3 stated that the absence of comprehensive legislation governing the country’s crypto ownership, trading, and investment impacts the ongoing debate. The firm noted that the key concerns revolved around effective Know Your Customer (KYC) and Anti-Money Laundering (AML) practices in the emerging industry.

However, amidst these debates, there is a sense of optimism regarding the potential for robust crypto regulations in the future. Francis Pouliot, CEO of BitcoinBulls, echoes this sentiment by showcasing the widespread use of Bitcoin in everyday transactions through a documentary video.

Pouliot illustrated the ease of using BTC to purchase goods in rural areas where merchants may not directly accept Bitcoin.

“This afternoon I’m going to purchase a gym membership with Bitcoin directly. I’m also going to buy a surfboard with Bitcoin, will try to orange pill the shop but if they don’t want I’ll still pay with Bitcoin and have the fiat sent to them via instant SMS-based bank transfer,” Pouliot added.

Meanwhile, Congresswoman Johanna Obando is a leading advocate for Bitcoin within Costa Rica. The lawmaker is pushing the flagship digital asset’s transformative potential and is actively “steering these debates to the right side of the conversation.”

JAN3 also highlighted the considerable opportunities for Bitcoin mining in Costa Rica. It argued that this venture could position the nation as a renewable energy leader in Latin America.

Read more: Crypto Regulation: What Are the Benefits and Drawbacks?

Costa Rica Crypto adoption
Top Latin American Countries by Crypto Received. Source: Chainalysis

Moreover, the tourism sector, a significant contributor to Costa Rica’s GDP, is expected to be crucial in driving Bitcoin adoption. Ventures like Bitcoin Jungle could be potential models for future businesses embracing cryptocurrency by facilitating Bitcoin payments for tourism-related services within the country.

Costa Rica’s engagement with Bitcoin mirrors broader trends in Latin America, where cryptocurrency adoption has steadily increased. The region’s economic instability, failed monetary policies, and rampant inflation have fueled this growth.

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Oluwapelumi Adejumo
Oluwapelumi Adejumo is a journalist at BeInCrypto, where he reports on a broad range of topics including Bitcoin, crypto exchange-traded funds (ETFs), market trends, regulatory shifts, technological advancements in digital assets, decentralized finance (DeFi), blockchain scalability, and the tokenomics of emerging altcoins. With over three years of experience in the industry, his works have been featured in major crypto media outlets such as CryptoSlate, Coinspeaker, FXEmpire, and Bitcoin...
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