Costa Rica’s Crypto Adventure: A Comedy of Errors and Bitcoin

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What to know:

  • Costa Rica’s largest commercial bank is launching a bitcoin ETF. 🎉
  • It’s the first crypto investment vehicle from Costa Rica’s banking sector. 🏦
  • The country doesn’t have any formal crypto legislation. 🤷‍♂️

In a move that could only be described as both audacious and slightly bewildering, the state-owned Banco Nacional (BN), the largest commercial bank in Costa Rica, is launching a spot bitcoin exchange-traded fund through its investment management arm, BN Fondos. One might wonder if they’ve consulted a fortune teller or simply flipped a coin. 🪙

This marks the first time that Costa Ricans will have access to any type of crypto investment product through the country’s banking system. Yes, you heard it right! The land of pura vida is finally dipping its toes into the murky waters of cryptocurrency. 🌊

Alongside the bitcoin vehicle, the firm is also launching an S&P 500 ETF. Because why not diversify your confusion? The minimum investment amount for each fund is a mere $100, and investments will be taken in U.S. dollars instead of Costa Rican colones. Apparently, colones are not cool enough for this venture. 💵

“[Costa Rican] regulation doesn’t permit investments in things that aren’t investment vehicles, and bitcoin isn’t considered an investment vehicle from a regulatory perspective, but the ETF is,” said Pablo Montes de Oca, general manager at BN Fondos. Ah, the sweet taste of regulatory loopholes! 🍷

Banco Nacional serves over 2.1 million customers in Costa Rica — more than 40% of the country’s population. That’s a lot of people who might soon be asking, “What is a bitcoin, and why is it so hard to catch?”

Costa Rica doesn’t have any formal crypto laws, but under the country’s constitution and civil code, as far as private parties are concerned, any activity that is not explicitly forbidden by the law is permitted. So, technically, Costa Ricans can trade and own cryptocurrencies, as long as they don’t ask too many questions. 🤔

A comprehensive crypto regulation bill called the Crypto Asset Market Law was introduced at the Legislative Assembly in 2022, but it got stuck at the commission level. The bill aimed to codify the use of cryptocurrencies for the payment of goods and services in Costa Rica, but without making any of them — not even bitcoin — legal tender. A classic case of “let’s talk about it later.” 💤

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2025-02-21 19:17