Panama introduces draft bill to regulate cryptocurrency, with digital assets recognized as a legitimate means of payment

According to Cryptoslate, Panama has released a comprehensive draft bill aimed at regulating cryptocurrencies and promoting the development of blockchain services. According to the bill, digital assets are recognized as legitimate means of payment, allowing individuals and businesses to freely agree on their use in commercial and civil contracts. Explicitly authorize the use of cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and stablecoins to purchase goods, pay for services, and settle debts, provided that both parties agree. The draft also creates a regulatory framework for virtual asset service providers (VASP), including wallets, exchanges, and custody platforms. Every company must register in a national database managed by the Department of Financial Analysis (UAF) and obtain appropriate authorization before providing services in Panama. The bill stipulates that compliance with KYC and anti money laundering (AML) guidelines must be enforced in accordance with the recommendations of the Financial Action Task Force (FATF). In addition, the bill also stipulates that any unregistered or non compliant entity may face administrative sanctions or criminal penalties.