Panama passes legislation to legalize use of crypto

On April 28, Central American country Panama unanimously passed a bill (40-0) to legalize the use of crypto assets in the country. The crypto regulation bill will come into force after Panama’s President Laurentino Cortizo signs the bill.

The decision came a week after the bill passed its second round of deliberations by the Panamanian Legislative Assembly’s economic affairs committee on April 22.

A tweet by the country’s National Assembly stated that the citizens will also be able to pay taxes using digital currencies. Crypto assets payments will be available for both public and private use, allowing citizens to pay taxes and municipal clearance via Bitcoin (BTC), Ethereum (ETH), XRP, Litecoin (LTC), Stellar (XLM), and other cryptocurrencies.

The Crypto Law, as introduced by the lawmakers, states that it “regulates the trading and use of crypto-assets, the issuance of digital value, tokenization of precious metals and other assets, payment systems and other provisions.”

In South America, El Salvador became the first country to adopt Bitcoin as its legal tender. However, unlike El Salvador, Panama has given businesses the right to accept or reject cryptocurrency payments.

In an unprecedented move, the Panamanian crypto law will also officially recognize DAOs as legal corporations. DAOs or Decentralized Autonomous Organizations are an organizational structures composed of flat management without a central authority.

Gabriel Silva, a member of the National Assembly and one of the lawmakers promoting the bill, said in an interview with local media that the bill will “give legal stability to crypto assets in Panama [and] develop the crypto industry in the country to attract more investments and generate more employment.”

Aprobada la Ley de Crypto de Panamá! Esto ayudará a que Panamá se vaya consolidando como hub de innovación y tecnología de America Latina!

Crypto Law approved in third debate! This will help Panama become a hub of innovation and technology in Latin America!

— Gabriel Silva (@gabrielsilva8_7) April 28, 2022

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