Panama puts forward bill which proposes regulation of crypto

A crypto enthusiast Panamanian congressman announced the news on Twitter

Flag of Panama and bitcoin symbol on coins                                 
Bitcoin in Panamanian flag colours - Photo:Shutterstock
                                

The Republic of Panama has introduced a bill that proposes to regulate cryptocurrencies and make the country more “compatible” with blockchain and digital assets.

The bill was announced on 6 September by Gabriel Silva, a congressman in the National Assembly of Panama, on Twitter.

Silva has also added red laser eyes to his Twitter profile picture, which is a trend among bitcoin bulls who believe the lead crypto will continue to soar in price.

The congressman believes the new legal initiative could create thousands of jobs, create new investment sources and make the Panamanian Government “more transparent”. 

Recognise bitcoin as an alternative global payment method

Silva shared the draft bill document, which states the new legislation aims to recognise cryptos like bitcoin as an alternative global payment method for “any civil or commercial operation not prohibited by the legal system of the Republic of Panama”.

The draft bill states that cryptos enable fast and low-cost payments, which lets them finalise transactions “regardless of the distance between parties and the transaction volume”.

Different move to El Salvador

The other big crypto news of the day is El Salvador becoming the first nation to make bitcoin legal tender from 7 September. The ‘Bitcoin Law’ means the lead crypto will be recognised as “unrestricted legal tender with liberating power, unlimited in any transaction, and to any title that public or private natural or legal personals require carrying out”.

While Panama’s bill does not make it compulsory to accept bitcoin, it merely gives organisations the freedom to do so if they wish, local businesses in El Salvador are now required to accept bitcoin in exchange for goods and services, as well as the US dollar.

Silva also noted that the draft bill was prepared alongside Panamanian citizens and a multidisciplinary team, which included industry and technology experts. The congressman explained that the legislation was produced with the Financial Action Task Force (FATF) guidelines taken into consideration. The FATF was founded in 1989 on the initiative of the G7 to develop policies to combat money laundering.

Further reading: Cryptocurrency countries: In which countries is crypto legal?

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