This week, Costa Rican lawmaker Johana OBANDO presented a bill to the Congress to regulate the crypto market in the Central American country. Obando, who now has a laser-eyed meme on her Twitter page, said the Crypto Asset Market Act (MECA) “will provide protection for individual virtual private property, self-custody of crypto assets, and decentralization” without interference from the country’s central bank, but in “full harmony” with it.
The proposed bill will prevent the government from taxing cryptocurrencies used to purchase goods. It will also prevent the government from taxing cryptocurrencies in cold storage, crypto mining will not be taxed on profits. However, profits from cryptocurrency trading will be subject to income tax under the bill.
Legislators want the Costa Rican government to recognize what cryptocurrency is and allow people to hold it and spend it freely. This, according to Obando, will eventually attract foreign investors, fintech companies and create jobs for Costa Ricans.