New Bill in Panama Proposes Allowing Cryptocurrency Use in Transactions, Establishing VASP Regulations and Integrating Blockchain into State Operations.
An ambitious bill has been submitted to the Panama Congress to establish a comprehensive legal framework for the use of cryptocurrency and blockchain technology. Introduced by substitute representative Gabriel Solis, the bill titled "Establishing a Legal Framework for the Use of Cryptocurrency and Blockchain, Promoting the Digital Economy in Panama" aims to create a clear legal environment for the digital asset industry in the country.
The legal text proposes several important points, including defining basic concepts related to cryptocurrency, establishing licensing requirements and minimum capital for virtual asset service providers (VASP), and proposing the creation of a dedicated supervisory agency to manage VASP activities. Additionally, the bill addresses providing tax incentives for businesses operating in the crypto field.
Panama Moves Towards a Digital Economy
A highlight of the bill is allowing businesses to voluntarily use cryptocurrency in commercial transactions, paving the way for building a comprehensive digital economy in Panama. Meanwhile, blockchain is proposed to be applied in various government management areas such as real estate registry management, official document verification, tax payments, digital identity development, and official document issuance.
When presenting the bill to Congress, Representative Solis emphasized: "We are not talking about the future – but the present. With this bill, we hope to establish a legal framework to support the development of new technologies. We are aiming for transparency and legal certainty."
This is not Panama's first effort to regulate the cryptocurrency market. Previously, in 2022, the Panama Congress passed a bill related to cryptocurrency, but former President Laurentino Cortizo partially vetoed it due to potential money laundering risks and constitutional violations. This led to a conflict between Congress and the President, with Cortizo sending the bill to the Supreme Court for constitutional review.
If passed, this new bill would bring Panama into the group of leading countries in regulating digital assets, alongside countries like El Salvador and Brazil, which have already established clear legal frameworks for this type of asset.
