Panama Passes a Law to Regulate Crypto Use

Crypto Regulation
Panama Passes a Law to Regulate Crypto Use

The Panamanian legislative assembly approved a bill on Thursday that would regulate the use of cryptocurrencies in the country. The bill, which Congressman Gabriel Silva introduced, aims to establish a framework for the country’s innovation and technology industry. It will also help amplify financial inclusion in the country and create jobs.

What Does the Approval Mean for Pamana?

The new law provides for regulating the various aspects of the crypto-assets market. It also includes establishing payment systems and the exchange of digital value. The bill was approved by the country’s legislative assembly last week. After it receives final approval, the president of Panama can veto it.

According to the bill’s author, the legislation’s goal is to create a stable and secure environment for the development of the crypto-assets industry in Panama. He noted that the bill also aims to have the government adopt blockchain technology to improve the efficiency and transparency of its procedures.

Silva’s bill stipulates that crypto usage will be “optional,” with merchants free to reject crypto payments. He stated: 

“Here in Panama, we are making this optional. That means that if I have cryptocurrency in Panama and I want to pay with it and [a vendor] does not want to accept it, the [vendor] is not obliged to accept it. In addition, the El Salvador law speaks only of bitcoin. However, the plan approved in the first debate establishes the possibility of using any cryptocurrency. We cannot and do not want to close the door to the use of more than one [type of ] cryptocurrency.”

Identification and Transparency

One of the most significant proposals in the law project is the inclusion of a blockchain technology-based identification system that aims to transform the state’s duty to provide identity services.

This initiative aims to promote the use of blockchain and distributed ledger technology in the digital identity of citizens and legal entities in the Republic of Panama. Another one is to use blockchain technology to improve the transparency of the state’s functions. This move is similar to other initiatives in Latam that use distributed ledger technology.

Bitcoin is Back Over $40K With More Positive Adoption News

Bitcoin (BTC) rose above $40,000 today as investors accumulated the digital currency. The rise in prices coincided with signs of increased adoption in various countries from Africa, to South America, to Central.

According to analyst Jason Deane of Quantum Economics, despite several positive developments in the cryptocurrency space, such as Cuba’s decision to allow licensed exchanges, Bitcoin is still in a tight range.

The Central African Republic became the second country to accept bitcoin as legal tender. The country’s central bank also plans to issue virtual asset service provider licenses. On Wednesday, Brazil also passed a law that aims to regulate the cryptocurrency industry in the country. According to Business Today, the bill seeks to establish a framework for the industry.

According to Marcus Sotiriou, an analyst at GlobalBlock, Bitcoin’s on-chain fundamentals are still positive. He noted that the number of whales has risen to its highest level since last year. According to a report by IntoTheBlock, retail is now buying bitcoins. 

The firm noted that the balance of addresses with less than ten bitcoins has increased to 2.08 million. It’s important to note that the number of addresses with less than ten bitcoins has increased over the past 30 days.

According to Sotitiou, the short-term outlook for bitcoin is positive due to the confirmation of the rising trend line in the daily time frame. He also noted that retail investors are starting to accumulate digital currency.

Wayne Jones

Wayne is an all-rounded cryptocurrency writer who has written for several publications in the fintech industry. Having graduated from the University of Essex Colchester, he developed a passion for blockchain technology and has been curious about how the blockchain can modify the traditional financial industry.