The “Cryptoassets Market Law (MECA)” bill, put up by Costa Rican congresswoman Johana Obando, seeks to regulate and legalize cryptocurrencies in the Central American nation.
Congressmen Luis Diego Vargas and Jorge Dengo seconded her and stressed the need for the government to tax bitcoin trading income rather than mining profits when they submitted the bill.
Expanding the Costa Rican Digital Economy
Obando explained on Twitter that the measure aims to provide legal clarity to fintech businesses, promoting the expansion of the digital economy and the uptake of crypto assets. She said that she thought the bill will give Costa Ricans more employment prospects and make it more attractive to foreign investors and fintech firms.
The measure also aims to protect individual virtual assets, decentralization, and self-custody of cryptocurrency holdings without interference from banks or the Costa Rican government. Obando declared that she wanted to invite cryptocurrency investors to Costa Rica. The goal of the proposed bill, she continued, is to provide a legal security framework for the sector so it can keep up with the use of cryptocurrencies, which has already begun in some regions of the nation.
Businesses Will Not Be Obligated to Accept Crypto
In contrast to El Salvador, MECA presents cryptocurrencies as private virtual currencies that can be used and moved about freely. Additionally, MECA does not compel companies to accept cryptocurrencies as a form of payment. Businesses are obligated by law to accept Bitcoin as payment because it is legal tender in El Salvador. The viability of that In Costa Rica with a sluggish internet connection was disputed by Obando.
Paraguay, a neighboring country in Latin America to Costa Rica, is also working to create regulations to enact governmental control over the Bitcoin mining industry, including enabling mining energy supply, monitoring mining investments by cryptocurrency companies, and regulating how mining companies manage digital assets generated from mining activities.
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