Panama Parliament Approves Crypto Regulation Bill

Various states have been working on staying abreast with the developments in the tech sector, especially blockchain and cryptocurrency. The latest developments include legislation in the Central African Republic and Panama. The latter is the latest addition to countries that have joined the crypto club.

This bill aims to make Panama a crypto hub in Latin America. As the investors get the investment opportunities, Panama will be able to gain in the form of taxes and transactions. Here is a brief overview of how the Panama parliament went for the crypto bill and what impacts it will have.  

Panama’s Crypto Move

The bold steps from El Salvador have helped open up new opportunities for investments in cryptocurrency. Many countries have considered similar moves to attract investors from across the globe. They are weighing their options and the possible consequences of what these changes will bring to their economy. The Central African Republic took a calculated step and legalized Bitcoin as a legal tender, with lesser repercussions for its economy.

Panama has followed the wave of change, and it has been more careful. Panama’s parliament considered a bill regarding crypto and its use to purchase goods and commodities. The bill was approved unanimously in the assembly on Thursday. The said bill aims at regulating crypto in the Republic of Panama.

It is aimed at public and private access to digital assets, thus building a safe framework for Panama’s citizens in the rapidly changing digital world. The news regarding approval of the bill from the parliament was announced by the official Twitter handle of Panama’s parliament.

Gabriel Silva, a parliamentarian, told the media that this bill would help Panama become the hub of technological innovations. According to the mentioned legislator, this bill will also help make the processes of transactions transparent using the distinctive features of ledger technology.

The Completion of Legislation

The bill hasn’t turned into law yet. The legislative system of the Republic of Panama requires the president to sign the bill to complete the legislation process. Thus, once the President of Panama, Laurentino Cortizo, signs the bill, it will become a law.

As it becomes a law, the citizens of Panama will be able to benefit from cryptocurrency’s use for various purposes. These include the purchase of goods, payment of taxes, tokenization of precious assets, entrepreneurship, etc. It will also bring investments to Panama from crypto and blockchain companies looking for growth opportunities.

The main aim behind this bill was the mobilization of the economy. Like other countries in the world, Panama is facing problems due to rising inflation and other related issues. If the foreign investments follow the bill, it will help revitalize the economy. The legislation ensures that there would be no capital gain tax on crypto assets.

It will also help with the financial representation of Panama’s large part of the population who don’t own a bank account. It will help in their inclusion in the system without any major costs. The parliamentarians now await the president’s approval, who has the authority to accept or reject it.  

Conclusion

The Republic of Panama has added its name to the list of those countries which have made efforts regarding crypto legislation. It took a step forward, approving a bill for the recognition of crypto and facilitating its use. The bill now awaits approval from the president of the republic, who is expected to sign it to make it a law. Once approved, it will help with financial representation, ease regarding crypto, and many other benefits.