Panama Passes Legislation Governing Cryptocurrency

The National Assembly of Panama has passed legislation to regulate Bitcoin and the cryptocurrency market. Officials in the country anticipate that the law would foster innovation and strengthen the economy.

The announcement comes just one day after the Central African Republic became the second country to legalize bitcoin as a legal tender. Cryptocurrency adoption is rapidly increasing around the world. El Salvador, Lugano, and Honduras Prospera are among the Central American countries that have followed Panama’s lead.

The passed law will regulate cryptocurrencies, according to the legislative body’s official Twitter account, which was published on April 28. The legislation governs the marketing and usage of cryptocurrencies, as well as the tokenization of precious metals and other goods, payment systems, and other aspects.

The law is fairly comprehensive, and it regulates a wide range of aspects of the cryptocurrency sector. The country’s president, Nito Cortizo, has yet to sign it, but that is likely. According to Gabriel Silva, a legislator and one of the law’s proponents, it is critical for Panama since it intends to bring legal stability to crypto-assets.

Officials appear to be focusing on building a climate conducive to creativity, with some predicting that this will help Panama become a Latin American center for innovation and technology. They also anticipate that it will benefit citizens by assisting in the creation of jobs and the promotion of financial inclusion.

Panama is the latest country to enact legislation to regulate cryptocurrency. Although not all of these initiatives are in the same direction, the majority of them are willing to accept cryptocurrency as long as it conforms with AML and KYC standards, as well as investor protection measures.

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