The Supreme Court of Panama Will Rule on the Crypto Legislation

• This law has been the subject of a dispute between the government and the Panamanian congress.
•  Private and public usage of crypto assets approved by the Panamanian National Assembly  2022.

The disagreement over Panama’s crypto legislation has allowed the Supreme Court of that nation to rule on the future of the nation’s crypto market. The so-called “crypto bill” submitted to the high court for review on January 26 by Panamanian President Laurentino Cortizo. He said it violated the fundamental values of the constitution and was therefore unenforceable. 

A clear statement from the president’s office argues that because the bill’s articles 34 and 36 create administrative structures within the government. And violate the state’s separation of powers, they are not effective. Following his partial disapproval of the legislation in June, President Cortizo additionally asserted that the bill’s approval subjected to an insufficient process. 

The Bill Allowed Private & Public Usage of Crypto Assets

At the time, the president stated further revisions were necessary to the legislation for it to comply with the new regulations. It proposed by the Financial Action Task Force that designed to increase financial transparency and stop money laundering. The legislation allowing the private and public usage of cryptocurrency assets. This approved by the Panamanian National Assembly on April 28, 2022. There were 38 in favor and 0 against it in the assembly. Panama may soon place third in the world for handling cryptocurrencies equally to fiat currency. 

The President approved the legislation but would not sign it until more severe Anti-Money Laundering (AML) regulations were included.  For Panamanian citizens, the Crypto Asset Law created to make transactions simpler. The act doesn’t just apply to Bitcoin, even though it’s the most widely used cryptocurrency. Rather, it supports a variety of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Stellar, XRP, XDC Network, IOTA, Algorand, and Elrond.