Panama is making strides to become a leader in the fintech sector with a new bill aimed at regulating cryptocurrencies and encouraging blockchain innovation.
The proposed legislation would set the stage for widespread legal use of digital assets, allowing them to be used for payments, contracts, and debt settlements, provided there is mutual consent.
The bill introduces clear guidelines for digital asset service providers, such as exchanges and wallet platforms, requiring them to register and adhere to international anti-money laundering and compliance standards.
This includes implementing Know-Your-Customer (KYC) procedures, ensuring greater accountability in the sector. Non-compliant businesses could face penalties or criminal charges.
Beyond financial transactions, the law envisions using blockchain technology to streamline public administration, enhance digital identity systems, and promote transparency. It would also give legal status to smart contracts, opening the door for more efficient business automation and innovation.
This initiative comes after Panama’s previous attempt to introduce crypto legislation in 2022, which faced challenges and was partially vetoed.
The new draft aims to resolve the earlier issues and clarify the roles of the country’s regulatory bodies. The bill is now set for review by the National Assembly, with potential amendments before being finalized.
Editorial Team
Reporter at Coindoo
Source: https://coindoo.com/panama-proposes-new-bill-to-regulate-cryptocurrencies-and-boost-blockchain-innovation/