A bill was introduced by a Panamanian lawmaker in the National Assembly for regulating cryptocurrencies. There were several proposals in the bill, which included legalizing different cryptocurrencies as a means of payment, such as bitcoin and ethereum, which includes payment of taxes. While the Bitcoin Law was put into effect in El Salvador that was aimed at making bitcoin legal tender, Gabriel Silva, the legislator in Panama tweeted that they were going to propose the Crypto Law. He went on to say that they wanted the country to be compatible with crypto assets, blockchain and the internet. The lawmaker said that it had the potential of attracting investment, creating jobs and bringing transparency.
He presented the draft law in the National Assembly and it was titled ‘Crypto Law: Making Panama compatible with the digital economy, blockchain, cryptoassets, and the internet’. Silva elaborated that the purpose of the law was to revolutionize the public administration in order to make it innovative, transparent and also to promote a digital economy that could reach most of the citizens of the country. The bill had three key objects that were highlighted by the lawmaker. The first objective is to provide safety and legal certainty to crypto assets in the country, which includes cryptocurrencies.
The second objective, as per the lawmaker, was to attract investment and companies in Panama for encouraging entrepreneurship that’s focused on the digital economy. He noted that doing so would help in creating jobs in Panama. The third objective was to broaden the number of financial services that are offered in the country, which can ensure better prices for all. The proposed law also focuses on the use of cryptocurrencies in the country. As per the bill’s Article 8, legal entities or people located in the Republic of Panama would be free to use cryptoassets.
This would include bitcoin and ethereum without any limits and they can be used as a means of payment for any commercial or civil operation that’s not prohibited under the legal system of the country. Furthermore, there is also an Article 9 that focuses on the possibility of using crypto assets to pay for fees, taxes and any other tax obligations. The Article dictates that entities and bodies in the Republic of Panama can receive payments via agents or payment processors specifically used for this purpose or directly for taxes and so on. There would be no limits placed on bitcoin or ethereum.
Silva also emphasized that when it comes to technological innovations, the country cannot be left behind. Panama is certainly not the only country that’s moving towards greater crypto adoption. It is just another in the ever expanding list, as cryptocurrencies seem to be taking over the world. As mentioned earlier, El Salvador has already introduced bitcoin as legal tender in the country. Likewise, Cuba and Ukraine are other regions where laws have been introduced for recognizing and regulating assets like cryptocurrencies, indicating that digital innovation is spreading its wings everywhere.