Panama approves bill regulating cryptocurrencies

The National Assembly of Panama approved a bill regulating the circulation of crypto assets in the country. Reuters reports.

The regulatory document “regulates the trading and use of crypto assets, the issuance of digital value, the tokenisation of precious metals and other assets, payment systems and other areas”.

Congressman Gabriel Silva stressed that legalising cryptocurrencies will help Panama become “a hub of innovation and technology in Latin America”.

Aprobada la Ley de Crypto de Panamá! Esto ayudará a que Panamá se vaya consolidando como hub de innovación y tecnología de America Latina!

Crypto Law approved in third debate! This will help Panama become a hub of innovation and technology in Latin America!

— Gabriel Silva (@gabrielsilva8_7) April 28, 2022

“Now I can go and pay for something to a seller. And if he wants to accept cryptocurrency — that is allowed, that is legal. Until now in Panama there was nothing like this,” — Silva stated.

He added that more than half of the country’s residents are not covered by the banking system, but the “crypto law” is intended to help them.

According to the document, cryptocurrencies in Panama are an acceptable form of payment “for any legal civil or commercial transaction”, including the payment of taxes, duties and other charges payable to the state.

“Crypto law” also officially recognises decentralised autonomous organisations (DAOs) as legal entities. In addition, the issuance of tokenised securities and commodities is regulated through STO.

Silva completed work on the bill in September 2021. He said the initiative would create “thousands of jobs”, attract investment and “make the government transparent”.

As reported, El Salvador became the first country to recognise Bitcoin as legal tender. However, a recent study showed low adoption rates of the first cryptocurrency in the country.

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