PANAMA

This week the Trade and Economic Affairs Committee of the National Assembly agreed to discuss two bills on cryptocurrencies. The first bill, introduced by Congresswoman Cenobia Vargas (PRD – ruling party) seeks to regulate the use of cryptocurrencies as a payment method. The second bill, called “Crypto Law”, introduced by Congressman Gabriel Silva (Independent), seeks to make Panama compatible with the digital economy, blockchain, and cryptoassets. Both texts are now enabled for their debates in committee.

The first bill aims to establish the optional acceptance of cryptocurrencies and authorized tokens as a method of payment for transactions and operations of civil and commercial nature.  Also, it defines these currencies as an electronic representation of value that may be used as a means of commercial exchange, as a unit of account or value deposit, and indicates that the value of cryptocurrencies authorized in Blockchain technology platforms will be equivalent to the country’s legal tender fiduciary currencies which are the balboa and the dollar.

The second bill proposes to provide legal, regulatory and tax certainty to the use, holding and issuance of cryptoassets in Panama, and to create a regulatory framework to promote banking interoperability to boost financial inclusion. Thus, it establishes that natural or legal persons may use cryptoassets, including without limitation Bitcoin and Ethereum, as a means of payment for any civil or commercial transaction not prohibited by the country’s legal system.