The recent publication in the Official Gazette (La Gaceta) of Legislative Decree No. 10961, amending Law No. 7786, Costa Rica’s anti-money laundering and counter-terrorist financing framework, marks a turning point in the regulatory treatment of virtual assets in Costa Rica. While public attention initially focused on the legislative approval of the reform, it is the official publication that triggers its entry into force timeline and clarifies the practical scope of the new framework.
For the first time, Costa Rica introduces a specific regulatory regime applicable to Virtual Asset Service Providers (VASPs), primarily focused on anti-money laundering (AML), counter-terrorist financing (CFT), and counter-proliferation financing (CPF) obligations. Importantly, the reform also signals the regulatory path chosen by Costa Rica: a compliance-driven model based on supervision and registration, rather than a comprehensive licensing or authorization regime for crypto-related activities.
I- Scope of the Reform: Bringing VASPs into the AML/CFT scope
Through the addition of Article 15 quater to Law No. 7786, VASPs are now formally incorporated into Costa Rica’s AML/CFT framework, subject to obligations aligned with international standards.
Key requirements include:
- Identification of customers and beneficial owners;
- Implementation of know-your-customer (KYC) and due diligence measures;
- Maintenance and availability of transaction records;
- Controls related to politically exposed persons (PEPs);
- Monitoring and management of risks arising from new products, services and technologies;
- Controls over virtual asset transfers; and
- Reporting suspicious transactions, including attempted transactions, to the Financial Intelligence Unit (FIU).
The law also introduces formal definitions of “virtual asset” and “virtual asset service provider,” covering activities such as exchange, transfer, custody, and financial services related to the issuance, offering, or commercialization of virtual assets.
II- Registration with SUGEF: supervision without licensing
One of the most relevant elements of the new regime is the obligation for VASPs to register with the Costa Rican Superintendence of Financial Entities (SUGEF).
However, the law is explicit on a critical point: registration does not constitute, and should not be interpreted as, an authorization to operate or a licensing regime.
This distinction is particularly relevant from an international perspective. Unlike jurisdictions that have introduced full licensing frameworks for crypto operators, Costa Rica has opted for a first-stage regulatory approach focused on AML/CFT supervision. At the same time, the reform introduces an important practical consequence: regulated financial institutions and other supervised entities are restricted from engaging with VASPs that, when required, are not registered with SUGEF.
As a result, while registration is not a license, it may effectively become a key gatekeeper for access to the formal financial system. In our view, in practice this means that registration will be critical for AML/CFT supervision purposes, because, although it does not, by itself, validate or approve the underlying business model from a broader regulatory standpoint, it may directly impact a VASP’s ability to establish or maintain banking relationships.
III- What has changed (and what has not)
The reform represents a significant step forward in regulatory clarity. However, its scope and limitations must be carefully understood.
Key developments include:
- VASPs are now formally subject to Costa Rica’s AML/CFT framework;
- Specific compliance and reporting obligations are introduced;
- A registration regime with SUGEF is established; and
- Sanctions for non-compliance are expressly incorporated.
However, the reform does not:
- Recognize virtual assets as legal tender;
- Create a licensing regime for crypto-related activities;
- Establish comprehensive market, conduct, or prudential regulation for VASPs.
This confirms that the legislative intent has been to close compliance gaps, rather than to fully regulate the virtual asset ecosystem. In this context, strengthening controls, monitoring and traceability mechanisms is particularly relevant, especially in light of growing concerns, both locally and globally, regarding the potential misuse of digital assets for money laundering and illicit activities. Bringing VASPs within the formal supervisory perimeter is a direct response to these risks.
IV- Practical implications for local and international operators
The new framework raises important considerations for both local and cross-border operators.
First, businesses must determine whether their specific activities fall within the (broad) legal definition of a VASP. This analysis becomes particularly relevant for complex structures involving multiple entities, outsourced functions, or operations distributed across jurisdictions.
Second, companies should assess whether they are required to register with SUGEF, the scope of their AML/CFT obligations, and the adjustments needed in internal compliance programs, onboarding processes, transaction monitoring, and risk management frameworks.
For international operators, the reform also raises questions around territorial scope, cross-border service provision, and the use of Costa Rican entities within global structures.
From a practical standpoint, SUGEF registration should not be viewed solely as a formal requirement, but as a key element in enabling operational viability, particularly in terms of access to banking services, relationships with regulated counterparties, and overall market credibility and sustainability. For operators with regional or international ambitions, this may become a decisive factor in structuring their entry into, or presence in, Costa Rica.
V- Pending regulation and transition period
The reform establishes a deferred entry into force period of three months from its publication. It also provides that the operational detail will be developed through a regulation to be issued by the National Council for the Supervision of the Financial System (CONASSIF) within three months after the entry into force of the legal reform. These deadlines open a critical window for market participants to review their regulatory exposure, define whether they qualify as obligated entities, evaluate their compliance strategy, and prepare the necessary documentation and structures for the new environment.
VI- Conclusion
The amendment to Law No. 7786 marks the beginning of a new phase in Costa Rica’s approach to virtual asset regulation. The country moves toward greater clarity and alignment with international AML/CFT standards, while deliberately adopting a gradual approach: compliance and supervision first, comprehensive regulation later, if at all.
For businesses and investors, this creates a more structured environment, but one that still requires careful legal and strategic analysis, particularly for cross-border operations and business models involving multiple jurisdictions.
Disclaimer
This publication is provided by Consortium Legal for general informational purposes only. It does not constitute legal advice and should not be relied upon as such.