Panamanian authorities to consider bill to regulate cryptocurrencies and blockchain

Panama’s National Assembly is preparing to consider a bill that could significantly change the country’s approach to digital assets. The bill would allow the government to invest in cryptocurrencies, recognize them as legal tender, and integrate blockchain technology into public administration.

Regulatory Bill Sponsors

A group of legislators led by MP Gabriel Silva has come forward with a new bill to regulate cryptocurrencies and blockchain. The approval process is expected to take until the end of 2025, given the need for amendments. If passed, the law would change the rules for crypto exchanges and digital asset transactions in Panama.

Main Provisions of the Bill

The bill will require all virtual service operators, such as crypto exchanges and crypto wallet providers, to register and strictly adhere to international anti-money laundering (AML) and Know Your Customer (KYC) standards. Violations of these requirements will be subject to fines and criminal penalties, which should improve the security and accountability of the crypto sector in the country.

Potential Benefits for the Economy

The initiators of the bill are confident that it will not only streamline the cryptocurrency market, but will also bring significant benefits to the Panamanian economy. The law is expected to improve digital identification systems, increase the transparency of public registries, and legalize smart contracts. This, in turn, will simplify business processes and attract innovative companies to the country, strengthening Panama's position in the fintech sector.

Previous attempts at regulation

This is the second attempt by Panamanian lawmakers to enshrine provisions on the circulation of digital assets in national legislation. In 2022, a similar bill, No. 697, was partially adopted, but its implementation was suspended by the country's president due to insufficient measures to combat money laundering.

In conclusion

Thus, the new bill represents an important step towards the formation of a legal framework for cryptocurrencies in Panama and may become the basis for the further development of the digital economy in the country.