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The Panamanian government continues its efforts to make the country crypto-friendly. In the latest move, Panama has signed a multilateral agreement to participate in the international exchange of tax information on cryptocurrency assets.

Essentially, Panama has agreed to work within the growing network of countries seeking to curb tax evasion and money laundering. It is also part of the mainstreaming of cryptocurrency, bringing it into the established regulatory structures.

The reporting standards should also improve the ability to use cryptocurrency for international transactions, a move that will boost the property market. At PPR, we’re seeing more and more clients asking about crypto, and many of our clients are set up to handle crypto transactions.

Panama actually signed two agreements with the aim of “strengthening fiscal transparency and combating evasion,” according to coverage in El Capital Financiero. The agreements cover the automatic exchange of tax information within the framework of the 18th Plenary Meeting of the Global Forum on Transparency and Exchange of Tax Information, the paper reports.

Cutting through the bureaucratic language, the agreements mean Panama will share information about crypto assets with multiple jurisdictions. By cooperating, Panama is showing the international financial community that it is strengthening its infrastructure to avoid being seen as “a weak link in the fight against tax evasion,” the paper speculates.

The Vice Minister of Economy, Eida Gabriela Sáiz, participated in the signing ceremony before the Organization for Economic Cooperation and Development (OECD). She said the agreements reaffirm the country’s commitment to modernizing its fiscal transparency framework and to fully incorporating the new global standards on crypto assets and the common reporting standard. 

The agreements send a “positive signal to investors, international organizations, and trading partners regarding the country’s commitment to fulfilling its obligations and continuing to modernize its financial and tax regulatory framework,” according to El Capital Financero.