The bill establishes a regulatory framework for digital asset service providers, including custody platforms and exchanges.
Panama has introduced a bill to regulate cryptocurrencies, aiming to create a clear legal framework for the use of digital assets in financial transactions. The proposed regulation includes licensing requirements for crypto service providers and compliance measures in line with international financial standards.
The bill will now be discussed in the committees of the National Assembly, where it may undergo changes before the final vote. If approved, Panama would position itself as one of the most advanced countries in Latin America in terms of cryptocurrency regulation.
Cryptocurrencies become legal payment method
One of the central points of the regulation is the legal recognition of digital assets as a payment tool. This means that citizens and businesses can freely agree to use Bitcoin, Ether, and stablecoins in their commercial transactions and civil contracts.
The use of cryptocurrencies will be allowed for purchasing goods and services, paying debts, and other financial operations, as long as both parties agree.
A regulatory framework for crypto service providers
The bill introduces specific regulations for Virtual Asset Service Providers (VASPs), including custody platforms, exchanges, and cryptocurrency wallets. Operators will need to register in a national database managed by the Financial Analysis Unit (UAF) and obtain official authorization to operate in the country.
Moreover, they will need to comply with Know-Your-Customer (KYC) and Anti-Money Laundering (AML) regulations, following the guidelines of the Financial Action Task Force (FATF). Those who fail to adhere to the rules will face administrative or criminal penalties.
Blockchain for governance and digital identity
In addition to cryptocurrency regulation in Panama, the bill also proposes the use of blockchain technology in public administration. The goal would be to improve bureaucratic efficiency and ensure greater transparency through digital identity systems and the tokenization of financial instruments. Legal validity is also granted to smart contracts.
