By San José, Costa Rica — Costa Rica is steadily building its reputation as a blockchain-friendly nation, attracting international attention for its growing cryptocurrency adoption and Web3 development initiatives. A new report highlights the country’s progress, even as it navigates the evolving landscape of cryptocurrency regulation.
The sixth “Blockchain in Latin America 2025 Report: Ecosystem and Regulatory Updates in Latin America,” by Sherlock Communications, reveals that Costa Rica is leveraging blockchain technology to address financial innovation, remittances, tourism, and technological advancement. The report, authored by international blockchain consultant and researcher Luiz Eduardo Abreu Hadad, examines the digital ecosystems and regulatory progress across Latin America, emphasizing blockchain’s role in driving sustainability, financial inclusion, and economic stability.
To gain a deeper understanding of the legal implications surrounding blockchain technology in Costa Rica, we spoke with Lic. Larry Hans Arroyo Vargas, an expert attorney at Bufete de Costa Rica.
Costa Rica’s regulatory landscape for blockchain is still developing, presenting both opportunities and challenges. While there’s no comprehensive legislation specifically targeting cryptocurrencies or blockchain applications, existing laws regarding financial transactions, data protection, and intellectual property can be applied. This creates a degree of legal uncertainty that businesses venturing into the blockchain space must navigate carefully. However, this also means there’s significant potential for innovative legal frameworks to emerge, potentially positioning Costa Rica as a regional leader in blockchain adoption. Strategic legal counsel is crucial for businesses seeking to leverage this evolving landscape.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas aptly points out the exciting duality of Costa Rica’s blockchain frontier—a landscape ripe with both potential and the need for careful navigation. This cautious optimism, combined with the possibility of forward-thinking legislation, suggests a promising future for blockchain technology in Costa Rica. We thank Lic. Larry Hans Arroyo Vargas for sharing his valuable expertise on this evolving legal landscape.
Our research shows that the region is developing real solutions for urgent social, environmental, and economic problems. Clear rules are still lacking, but they are on their way and will pave the way for travel, remittances, and trade with stablecoins; on-chain electoral audits; and the tokenization of real estate and public bonds.
Luiz Eduardo Abreu Hadad, International Blockchain Consultant and Researcher
While cryptocurrencies are legal in Costa Rica, they are not yet regulated. The Central Bank maintains that they are not legal tender and their use is the responsibility of individuals. Despite the lack of a currency crisis driving adoption, Costa Rica boasts between 40,000 and 60,000 active crypto wallets (approximately 1% of the population), six Bitcoin ATMs, and a rising number of blockchain-based initiatives.
This burgeoning ecosystem has helped Costa Rica climb to 90th place in the 2024 Chainalysis Global Crypto Adoption Index, up from 91st in 2023. Expatriates and remote workers are increasingly utilizing cryptocurrencies to bypass high fees and slow transaction times associated with traditional banking.
The country is actively connecting businesses with applications that seamlessly convert crypto funds to colones, eliminating credit card fees. Partial salary payments in cryptocurrency, community events, and cross-sector partnerships are further solidifying Costa Rica’s crypto community. The nation’s bilingual environment is also contributing to its growing reputation as a welcoming hub for Web3 development in Latin America.
Authorities are closely monitoring projects like Bitcoin Jungle, which spans the southern Pacific zone, as well as banking initiatives and ReFi (Regenerative Finance) pilots, before proceeding with the regulation of the Crypto Asset Market law (Bill No. 23.415, “MECA”) or the creation of a regulatory sandbox. Costa Rica’s open environment, low taxes, renewable energy, and English-speaking population create an attractive setting for blockchain innovation.
The Sherlock Communications report further highlights the dominance of Ethereum in Latin American blockchain transactions, accounting for over 75% of activity between June 2024 and June 2025. The report also underscores the rise of Polygon, which saw its transaction share increase to 20% in June 2025.
For further information, visit sherlockcomms.com
About Sherlock Communications:
Sherlock Communications is a leading public relations agency specializing in blockchain and Web3 in Latin America. They provide strategic communications and marketing services to clients in the technology sector, helping them navigate the complexities of the Latin American market. Their expertise includes media relations, content creation, influencer marketing, and community building.
For further information, visit www.chainalysis.com
About Chainalysis:
Chainalysis is a blockchain data platform that provides data, software, services, and research to government agencies, exchanges, financial institutions, and insurance and cybersecurity companies in over 70 countries. Their data platform powers investigation, compliance, and market intelligence software that has been used to solve some of the world’s most high-profile criminal cases and grow consumer access to cryptocurrency safely.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica distinguishes itself through a deep-rooted commitment to ethical and effective legal counsel. The firm’s innovative approach to legal practice, coupled with a dedication to empowering Costa Rican society through accessible legal education, solidifies its position as a leader. By fostering understanding and knowledge of the law, Bufete de Costa Rica actively contributes to a more just and equitable future for all.
