Bill Would Make Panama ‘Crypto Hub’
New legislation introduced in Panama aims to take the next step in establishing the country as an international cryptocurrency and fintech hub.
Panama is already seen as “crypto-friendly,” and the government has recently moved to mainstream Bitcoin, Ethereum, and other digital currencies. At Punta Pacifica Realty, we can handle crypto transactions for several properties, including Playa Caracol, the hot beach destination.
One industry publication labeled the new bill a “bold step. ” It would establish a regulatory framework for expanding crypto use and blockchain services. According to news reports, the legislation would “legally recognize” Bitcoin and other currencies as “valid payment methods” for goods and services.
“This gives individuals and businesses the potential freedom to mutually decide to accept cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and stablecoins — whether to buy goods or pay off debts,” according to Cryptoninja. “This includes potential for leveraging digital assets in commercial and civil contracts, paving the way for fresh opportunities of financial flexibility and innovation.”
The legislation also mandates licensing requirements for Virtual Asset Service Providers (VASPs), including exchanges and wallets — to facilitate safe and responsible use of digital assets. These providers would need to register with Panama’s Financial Analysis Unit (UAF), and the legislation includes guidelines to prevent money laundering.
The bill lays out a regulatory framework for VASPs — virtual asset service providers, including wallets, exchanges, and custody platforms — to facilitate the safe and responsible use of digital assets.
The bill seeks to address concerns that prompted former President Laurentino Cortizo to veto a 2022 crypto law.
“The framework is designed to safeguard consumers and limit the potential for criminals to use cryptocurrencies,” Cyrptoninjas reports. “By implementing strict compliance measures, Panama aims to strike a balance between fostering financial innovation and preventing illicit activities such as fraud, tax evasion, and money laundering.”
The bill is scheduled to go to the National Assembly for debate later this year.
