Lawmaker Presents Bill to Regulate Cryptocurrencies in Panama

A Panamanian lawmaker has introduced a bill to regulate cryptocurrencies in the National Assembly. Among the proposals in the bill is the legalization of cryptocurrencies, like bitcoin and ethereum, as a means of payment, including for paying taxes.

Proposed Crypto Law Will ‘Give Legal Certainty and Safety to Crypto Assets in Panama’

As the Bitcoin Law went into effect in El Salvador making BTC legal tender, Panamanian legislator Gabriel Silva tweeted on Sept. 7, “Today we proposed the Crypto Law.” He elaborated:

We want Panama to be compatible with blockchain, cryptoassets, and the internet. This has the potential to create jobs, attract investment and bring transparency.

The draft law he presented in the National Assembly is titled “Crypto law: Making Panama compatible with the digital economy, blockchain, cryptoassets, and the internet.”

Silva explained that the law “seeks to revolutionize public administration, making it transparent, innovative and also promoting a digital economy that reaches most of the citizens.”

Illustration of the proposed Crypto Law. Source: Gabriel Silva

The lawmaker proceeded to outline three key objectives of the bill. The first is “to give legal certainty and safety to crypto assets in Panama, for example, cryptocurrencies,” he described.

The second is to “attract companies and investment and encourage entrepreneurship in Panama that are focused in digital economy,” he added, noting that this will help create jobs.

The third is to “broaden the amount of financial services that are offered in Panama, ensuring better prices for everyone.”

Illustration of the proposed Crypto Law. Source: Gabriel Silva

The proposed law also addresses the use of crypto assets in Panama. Article 8 of the bill states: “Natural persons located in the Republic of Panama or legal entities organized in the Republic of Panama may freely agree to use cryptoassets, including without limitation bitcoin and ethereum, as means of payment for any civil or commercial operation not prohibited by the legal system of the Republic of Panama.”

Furthermore, Article 9 addresses the “Possibility of payment of taxes, fees and other tax obligations with cryptoassets.” It reads:

The bodies and entities of the Republic of Panama may receive payments, directly or through payment processors or agents contracted for this purpose, for taxes, fees and other tax obligations in cryptoassets, including without limitation bitcoin and ethereum.

Silva emphasized that “Panama cannot be left behind in technological innovations.” The proposed crypto law can be found here.

What do you think about this proposed crypto law in Panama? Let us know in the comments section below.