Panama is making strides to become a leader in the fintech sector with a new bill aimed at regulating cryptocurrencies and encouraging blockchain innovation.
Panama is moving full steam ahead in its journey to become a hub for fintech with a new bill focused on cryptocurrency regulation and fostering blockchain innovation.
The proposed legislation would introduce broad legal status for cryptocurrencies, permitting their use in payments, contracts, and debt settlement with mutual consent.
The bill sets out clear rules for digital asset service providers, such as exchanges and wallet platforms, requiring them to register and comply with international anti-money laundering and financial crime regulations.
This includes implementing Know-Your-Customer (KYC) procedures, which are used by banks and other financial institutions to verify the identity of their clients.
Non-compliant businesses could face administrative penalties or even criminal charges.
Beyond financial transactions, the law aims to use blockchain technology for streamlining public administration, improving digital identity systems and promoting transparency. It would also give legal standing to smart contracts.
This initiative follows a previous attempt by Panama to introduce crypto legislation in 2022, which encountered difficulties and was partially vetoed.
The new draft aims to address the earlier issues and clarify the roles of the country’s regulatory bodies. The bill is now set for review by the National Assembly, with potential amendments before it is finalized.
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