Costa Rica proposes crypto projects for legal use

TL;DR Breakdown

• Secretary of the country asks for its crypto project review before the end of March.
• Leaders in Costa Rica believe that decentralized commerce should pay VAT for operations

A few days before the end of March 2022, the Treasury Secretariat in Costa Rica has outlined its plan, which is intended to promote crypto purchase. The country in Central America follows the steps towards crypto trading that El Salvador has been promoting since last year. The secretariat has given until the end of the month for the project to be reviewed.

The treasury department in the country confesses that it has been researching the crypto trade for a long time and is looking for a way to integrate it into its national economy. However, Costa Rica remained impartial about using tokens like BTC inside the country because they did not have a complete scheme for their adoption.

Costa Rica Treasury dabbles into the crypto market

The Minister of Finance, Villegas Elián, believes that cryptos offer a brilliant system for exchanging funds, even giving profits to all the people who use it. Under these thoughts, Villegas believes that decentralized commerce should be attached to VAT; income taxes should also be charged.

General Director of Taxation, Vargas Carlos, said that his team is defining the fiscal scheme to which the decentralized market will be subject. According to Vargas, the central banking entity in Costa Rica does not indicate that cryptos are currencies but rather as a virtual asset class.

The Treasury Secretariat complies with the OECD’s suggestions in previous months regarding the study, research, and development of a good tax scheme for the crypto market. The national department has complied with each guideline above.

Crypto taxes in Costa Rica

During the secretariat’s proposal in Costa Rica on cryptos, the taxes applied to the asset are discussed. According to reports, the treasury agency seeks to approve crypto transactions but is subject to taxation for legal and national citizens who want to trade with them. But the control will be applied to the profits with the crypto funds.

In previous months, the central banking entity in Costa Rica said that his objectives were to monitor crypto funds to have good circulation in the country. This way, it will be possible to move towards new technologies and develop new Fintech services.

So far, Bitcoin in the country is not illegal, but no official law supports its use. After the review days of the crypto project promoted by the Treasury Secretariat, the country is likely to change its position on tokens. Costa Rica could be the following country in Central America to approve trading in Bitcoin or other popular tokens legally.