Panama, the country which was once considered a tax haven for the ultra-rich of the world, is making waves in the crypto world. Recently, its crypto bill reached a phase where the nation’s Supreme Court will decide the future of the local crypto industry.
Panamanian President Lauretino Cortizo sent the crypto legislation, passed last year, to the high court for review. Arguing that the crypto bill is unenforceable and violates the core principles of the constitution.
The fate of the “crypto bill” will now be decided by the Supreme Court; they can either declare Bill No. 697 unenforceable or approve it with modifications.
As per the official statement from the President’s office, article 34 and 36 violates the state’s separation of powers while establishing administrative structures within the government, which are unenforceable.
President Cortizo previously argued that the said bill was approved using inadequate procedures following his partial veto of the legislation in June. During the presentation also, the President proclaimed that the bill still requires more work if it wants to comply with the new regulations recommended by the Financial Action Task Force. These pointers were aimed at improving fiscal transparency along with curbing money laundering.
The bill became the center of the dispute between Panama’s National Assembly and the government. Panama’s lawmakers came together and passed a legislative proposal that was aimed at regulating cryptocurrencies. Still, President Cortizo refused to sign on the dotted line unless additional Anti-Money Laundering (AML) rules are not applied.
The bill was introduced in September 2021 to make the country “compatible with the digital economy, blockchain, crypto assets, and the internet.” It exited the Economic Affairs Committee on April 21, 2022, and was approved a few days later.
According to the country’s legislation, Panamians “may freely agree on the use of crypto assets, including without limitation Bitcoin and Ethereum,” this could be an alternative payment for either civil or commercial operations.
The bill also aims at regulating the tokenization of precious metals and issuing their digital value. The government’s innovation authority could also explore digitizing the citizens’ identity using the benefits and security of blockchain and distributed ledger technology.
Keeping the recent events of the crypto industry in mind now is the best time for crypto regulations. All the bad instances clarified one thing, the technology cannot be blamed, but the bad actor handling the technology needs to be kept in check. Hence, the requirement for strict regulations.
Such regulation must be thought of deeply and must be flexible and robust simultaneously, allowing the best to come out of the technology and eliminating the bad. As technology offers great benefits, the rules and regulations can benefit the whole world if applied properly.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/01/30/supreme-court-of-panama-to-rule-on-cryptocurrency-legislation/