National Assembly of Panama Advances Discussion of Cryptocurrency Law Project

The National Assembly of Panama advanced a draft law on cryptocurrencies, which aims to regulate cryptocurrency activities to give more clarity to this sector in the country. The proposal, which was approved during the first debate, consisted of two different drafts presented to the Assembly’s Economic Affairs Commission.

Panama moves to regulate crypto-assets

Panama is taking steps to regulate crypto-assets and the businesses that use them in the country. The country’s National Assembly, which is Panama’s highest legislative body, has taken the first step toward regulating the use of cryptocurrencies. The institution approved, in its first debate, a draft cryptocurrency law entitled “An Act to regulate the commercialization and use of crypto-assets, the issuance of digital value, the tokenization of precious metals and other goods, payment systems and other provisions.”

The proposed law includes definitions and concepts about cryptocurrencies, blockchain technology and the implementation of these decentralized tools to facilitate public affairs. This approved bill is a merger of two different proposals introduced as Bills 696 and 697, according to the agency’s social media post

One of the initiators of this bill, Gabriel Silva, who first introduced it in September, said that this approved bill underwent some changes during the first debate and that he believes it can be improved.

Blockchain for identity and transparency

One of the most important proposals of the draft law has to do with the inclusion of a blockchain-based identification project that seeks to digitize this obligation of the Panamanian state. This goal is defined in the law as follows:

To expand the digitalization of the state by promoting the use of distributed ledger technology and blockchain in digitizing the identity of individuals and entities in or from the Republic of Panama, and as a means to make the public function transparent.

The submitted project also identified as a goal the use of blockchain technology to increase transparency in government functions. This is similar to other projects in Latam that use distributed ledger technology to develop state functions such as payments and tax collection. One such project is the Brazilian Blockchain Network, which is also being developed as a base for the country’s government organizations.

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