Panama’s Bill Moves Forward

Panama is making significant strides in crypto regulation with a new bill that aims to establish the country as a leader in fintech in Latin America.

The bill provides a comprehensive legal framework for digital assets, recognizing them as a valid form of payment for transactions, including business and civil agreements.

It allows the use of cryptos like Bitcoin, Ethereum, and stablecoins for purchasing goods, paying for services, etc.

The bill requires Virtual Asset Service Providers (VASPs), such as wallets, exchanges, and custody services, to register with Panama’s Financial Analysis Unit (UAF) and comply with Know-Your-Customer (KYC) and Anti-Money Laundering (AML) regulations.

The bill promotes the integration of blockchain technology in governance to enhance transparency and efficiency. It supports the development of digital identity systems and the issuance of tokenized securities.

Smart contracts are granted legal validity, enabling automation and innovative financial solutions.

The updated bill seeks to address concerns about regulatory clarity and constitutional issues that led to the partial veto of Panama’s 2022 crypto law.

The regulations are aligned with international financial standards, ensuring compliance with FATF guidelines.

If passed, the legislation will position Panama as a major fintech hub in Latin America, potentially driving Bitcoin adoption and influencing its price.

Despite optimism, regulatory challenges and public acceptance remain hurdles to be overcome.

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