Costa Rica would limit the use of bitcoin with a law

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Debates for the creation of a law that regulates the use of bitcoin (BTC) and other cryptocurrencies were recently resumed in Costa Rica. Although it is feared that Congress is about to debate a regulatory proposal that limits the use of digital currencies in the Central American country. Such as reported the company JAN3 in a message on could compromise the ability to freely use bitcoin as money for daily transactions. According to the company run by bitcoiner Samson Mow, fears linked to the cryptocurrency ecosystem “have played their part in these debates,” with KYC and AML (know your customer and anti-money laundering) practices the center of the measures that legislators want to propose. In that sense, JAN3 highlights the work of Costa Rican representative Johana Obando, who “has become a staunch defender of bitcoin, promising to take these debates to the right side of the conversation.” Obando was the one who, at the end of 2022, presented a bill to the Costa Rican Congress with the idea of ​​approving a legal framework for the bitcoin market in her country. As BitcoinDynamic reported, the proposal included a series of measures that sought to protect individual virtual private property, self-custody and decentralization. “Transactions in cryptoassets, that is, the purchase and sale using digital assets, must continue to be carried out in Costa Rica in an open manner. In this context, we have also proposed that a legal security framework be created, which prevents money laundering, but which allows the growth of this industry,» commented the deputy remembering the project presented more than a year ago. The objective is facilitate the use of cryptocurrencies to acquire goods and services in Costa Rica, “without fear of sanctions from the country's financial authorities.” An idea that he reiterated in last week's session of Congress, where he expressed that the approval of a restrictive law Doesn't mean people stop using bitcoin. “On the contrary, the proposed motions would limit the cryptocurrency market, which could generate a clandestine market,” said Obando, referring to the proposals made within Congress. In that sense, the legislator considers it crucial that the regulation approved now, contemplate the continued growth of cryptoasset technology in the country. “It is a reality that many people carry out transactions in cryptocurrencies, and restricting these operations will have negative consequences on the legal market for these assets,” he said. Although the representative did not mention it in her speech, it is worth remembering that Costa Rica is the headquarters of Bitcoin Jungle, a citadel made up of a group of communities that live in the west of Costa Rica and that promote the use of digital currency as a means of payment. The well-known citadel is inspired by Bitcoin Beach, El Salvador's pioneering circular economy. Thanks to the activities of Bitcoin Jungle, a growing number of businesses and people in the coastal area of ​​the Bahía Ballena district use Satoshi Nakamoto's invention on a daily basis. The beach towns are filled with tourists attracted for the landscapes and the possibility of making payments with bitcoin. «It is a reality that many people carry out transactions in crypto assets, and restricting these operations will have negative consequences on the legal market for these assets,» said Obando, who believes it is necessary to ensure that the new regulation does not affect the adoption of bitcoin and other cryptocurrencies in Costa Rica.