Panama introduces legislation for legalization of voluntary paying crypto, regulate the industry

Panama has discovered the momentum law draft The goal is to regulate the cryptocurries and encourage the development of blockade-based services, signaling renewable effort to place the country as a Fintech Leader in Latin America.

The proposed law establishes a legal framework for the use of digital assets in financial transactions, establishes licensing requirements for service providers and includes strict compliance measures in accordance with international financial standards.

Legal recognition of digital assets

According to the account, digital assets are recognized as legal means of payment, enabling individuals and companies to agree freely about their use and in commercial and civil contracts.

Legislation explicitly authorizes the use of cryptocurren like Bitcoin (Btc), Etherum (El) and stablecoins for the purchase of goods, pay for services and settle debts, provided both sides agree.

The draft also creates a regulatory framework for virtual assets service providers (VASPS), including staff, exchange and platforms. Each should be needed to register in the national database managed by the financial analysis unit (UAF) and obtain the appropriate authorization before providing services in Panama.

The bill provides compulsory compliance with guidelines with knowledge with knowledge (KIC) and AML) in accordance with the recommendations of the Financial Action Working Group (FATF).

In addition, the bill provides for any unregistered or non-united entities could face administrative sanctions or criminal penalties.

BlockCain to manage and digital identity

In addition to financial regulation, the draft law encourages the use of blockoin in public administration. It describes the provisions for digital personal systems and the issuance of tokenized securities, aimed at reducing bureaucratic inefficiency and promote transparency both in public and private sectors.

Legislation also authorizes smart contracts, recognizing their legal execution in Panama law. The deputies see this as an opportunity to enable innovative financial products and automate business processes through programmable agreements.

If adopted, the draft law will mark a significant change in policies after the previous cryislation in 2022. years – partially Vetoo is the then president Laurentino Cortiso, which initiated concerns about regulatory shortcomings and constitutional inconsistencies.

The new draft processes these problems by defining the role of regulatory bodies, including UAF and superiority of Panama banks.

The Draft Law is expected to move to discussions on the Board in the National Assembly in the coming weeks, where it can submit amendments before it brings vote.

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