Costa Rican lawmakers are working to make the Central American country a Bitcoin-friendly nation with significantly lower taxes on cryptocurrencies.
Last week, lawmaker Johana Obando introduced a bill to Congress to regulate the cryptocurrency market in the country. Johana stated that the Crypto Assets Market Law (MECA) would “give protection to individual virtual private property, cryptocurrency self-custody and decentralization” without interference from the country’s central bank.
Costa Rican lawmakers want a law that recognizes what digital assets are and allows for the purchase, sale, payment and storage without interference from the Costa Rican government. The bill would not allow the government to tax cryptocurrencies when used to buy goods. It would also not allow the government to tax cryptocurrencies stored in cold storage, as well as cryptocurrencies from mining activity. However, profits raised through cryptocurrency trading would be subject to income tax.
In short, lawmakers want the Costa Rican government to recognize what a cryptocurrency is and allow people to hold and spend it largely freely, attracting foreign investors, fintech companies, and creating jobs for Costa Ricans.
“MECA introduces cryptocurrencies as a private virtual currency, with free access and circulation, and does not oblige the State to acquire or replace them.”