When people talk about a crypto business Costa Rica, a jurisdiction in Central America attracting crypto startups due to its lax financial oversight and growing tech scene. Also known as crypto-friendly Costa Rica, it’s become a magnet for exchanges, DeFi projects, and remote crypto teams looking to avoid strict KYC rules. But here’s the catch: just because a country doesn’t ban crypto doesn’t mean it’s safe to operate there.
Many crypto businesses in Costa Rica fly under the radar because they don’t register with local authorities. That’s fine until someone gets hacked, or worse—until a foreign regulator steps in. Look at what happened to TradeOgre, a crypto exchange that shut down after Canada seized $40 million in crypto for operating without KYC. Or how Upbit, South Korea’s biggest exchange, faced $34 billion in fines for failing to verify users. These aren’t distant stories. They’re warnings. If your crypto business avoids KYC and AML rules, you’re not being clever—you’re being a target. Costa Rica doesn’t have its own crypto licensing system, so many operators think they’re invisible. But global agencies like the FATF and the U.S. Treasury track cross-border flows. If your exchange handles U.S. or EU users, you’re already in their scope.
Then there’s the other side: the legit players. Some crypto businesses in Costa Rica are quietly building real products—wallets for remittances, blockchain-based land titles, or payment gateways for tourism. These aren’t flashy airdrops or meme coins. They’re solving actual problems. But even they struggle with banking. Most local banks won’t touch crypto-related accounts. So many rely on offshore banking or crypto-native payment processors, which come with their own risks. And if you’re thinking of starting a crypto exchange there? Good luck finding a payment processor that won’t freeze your funds. The market is full of fake exchanges like LongBit, a scam site pretending to be a real trading platform with zero legitimacy—and they make it harder for real businesses to get trusted.
What you’ll find in the posts below isn’t a list of "best crypto hubs" or "how to start a crypto company in Costa Rica." It’s the truth behind the headlines. You’ll see how crackdowns in South Korea and Canada are reshaping global compliance. You’ll learn why fake airdrops and unregulated exchanges are the biggest threats—not government bans. And you’ll get real examples of what happens when crypto businesses ignore KYC, skip audits, or pretend they’re untouchable. If you’re thinking about launching, investing, or just avoiding scams in the crypto space, this isn’t just background. It’s your first line of defense.
Costa Rica doesn't recognize crypto as legal tender, but it's not banned either. Learn how businesses operate in this gray zone, why banks refuse to work with crypto firms, and what the new regulations really mean for users and entrepreneurs.