Costa Rican Lawmaker Proposes to Regulate Crypto Market

Johana Obando, a congresswoman from the Central American country of Costa Rica, has introduced a bill to Congress requesting the government to regulate the crypto market and cut taxes on cryptocurrencies, making Costa Rica a cryptocurrency-friendly country.

The bill proposes that Costa Rica’s government recognize cryptocurrency and allows people to trade, hold and spend them.

Johana Obando mentioned on his official Twitter that Cryptoassets Market Law (MECA) will “protect individual virtual private property, self-custody, and decentralization of crypto assets” from the country’s central bank – but in “perfect harmony” with it “.

Johana Obando and members of Congress Luis Diego Vargas, Jorge Dengo and Jorge Dengo proposed that Costa Rican citizens not be taxed for goods bought using cryptocurrency and that the government not tax cryptocurrencies created from it. MiningHowever, any profits made from trading cryptocurrencies will be subject to income taxes

Obando claimed that the move would attract foreign investment and fintech companies, and create jobs in Costa Rica.

As cryptocurrency continues to gain popularity, many countries are placing great importance on them.

Costa Rica is also ranked among the countries that have the highest acceptance rate for cryptocurrencies.

In 2018, according to the country’s law, in Costa Rica, part of an employee’s salary can be paid in cryptocurrencies, and wages can be paid not only in fiat currency but also in commodities. Some experts consider cryptocurrencies suitable for this group.

Costa Rican law allows the use of generally acceptable assets as a payment method.

The country’s work code allows workers to receive part of their wages in cryptocurrency. Employers may also allow workers to negotiate the amount of cryptocurrency they wish to receive.

The bill, unlike El Salvador which uses bitcoin for legal tender, proposes to introduce cryptocurrencies as private virtual currencies that are freely convertible but not as national legal currency.

Source: Shutterstock

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