Panama’s National Assembly Moves Crypto Law Project Discussion Forward

Key Takeaways:

  • The Panama National Assembly has approved a cryptocurrency legislative initiative that aims to regulate cryptocurrency activities to bring better clarity to the country’s sector. 
  • The plan, which was accepted during the first discussion, was composed of two different initiatives brought before the Assembly’s economic affairs committee.

The Panamanian National Assembly has passed a cryptocurrency legislative effort aimed at regulating cryptocurrency activities in order to improve transparency in the country’s sector. The idea, which was approved during the first discussion, was made up of two separate initiatives presented to the Assembly’s economic affairs committee.

Panama intends to seize control of bitcoin assets as well as firms in the country that use them. The Panamanian National Assembly, the country’s highest legislative body, has taken the first step toward regulating cryptocurrency use. 

During the first session, the institution adopted a cryptocurrency law proposal titled “Law that oversees the commercialization and use of crypto assets, the problem of digital value, and the tokenization of precious metals.”

The proposed legislation defines and discusses cryptocurrencies, blockchain technology, and the use of these decentralized tools to expedite government operations. According to a social media post from the organization, this authorized project is a combination of two different recommendations filed as legislation projects 696 and 697.

Gabriel Silva, one of the law’s proponents who initially submitted it in September, remarked that the authorized project underwent several changes during the initial discussion and, in his opinion, can be improved.

One of the most essential recommendations in the legislation project is the inclusion of a blockchain-based identification project that aims to digitize the Panamanian state’s obligation. The following is how the legislation defines this goal:

” Expand the digitalization of the State by promoting the use of distributed ledger technology and blockchain in the digitalization of the identity of natural and legal persons in or from the Republic of Panama and as a means to make the public function transparent.”

The offered project has also defined the use of blockchain technologies to improve the transparency of state functions as a target. This is comparable to past Latam projects that used distributed ledger technology to enhance government functions such as payments and tax collection. One of these projects is the Brazilian Blockchain Network, which is also serving as a basis for the country’s official institutions.

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Baisakhi Mishra

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