Panama Prepares Legislative Framework for Implementation of Cryptocurrencies and Blockchain

The National Assembly of Panama is considering an ambitious bill that could significantly change the country’s financial landscape. The document envisages the recognition of cryptocurrencies as legal tender, allows public investment in digital assets, and introduces blockchain technology into public administration. The initiator was a group of legislators led by MP Gabriel Silva, who emphasizes the importance of the project for the future of the Panamanian economy.

According to the plan, the discussion and approval of the bill, taking into account the necessary amendments, may last until the end of 2025. If the law is adopted, it will radically change the regulation of the cryptocurrency market in the country. In particular, all virtual asset operators, including crypto exchanges and crypto wallet providers, will be required to register and comply with international standards for combating money laundering (AML) and the Know Your Customer (KYC) procedure. Violation of these requirements will entail fines or criminal liability, which should increase the transparency and security of the sector.

Focus on security and transparency

The authors of the initiative are confident that the new law will not only help to streamline the digital asset market, but will also become a driver of economic growth. Thanks to the introduction of blockchain technologies, it is planned to improve the digital identification system, increase the openness of state registries and give legal force to smart contracts. This will simplify business processes and make Panama more attractive to international fintech companies and investors.

Second attempt at digital reform

It is noteworthy that this is already the second attempt by Panama to integrate cryptocurrencies into national legislation. In 2022, bill No. 697 was partially approved, but its implementation was frozen by decision of the country’s president due to insufficiently strict AML measures. The new document takes into account previous comments and is focused on compliance with international requirements, which increases its chances of successful adoption.

Thus, Panama is taking a confident step towards creating a modern digital economy, striving to take one of the leading places in the global fintech ecosystem.