Panama Drafts Comprehensive Crypto Bill Recognizing Bitcoin and Ethereum as Legal Payment Methods

Panama has introduced a comprehensive draft bill to regulate cryptocurrencies and promote blockchain development, aiming to establish itself as a fintech hub in Latin America. The bill, unveiled recently, recognizes digital assets as legal payment methods, allowing Bitcoin (BTC), Ethereum (ETH), and stablecoins to be used for transactions with mutual consent. It also establishes licensing for Virtual Asset Service Providers (VASPs), requiring registration with the Financial Analysis Unit (UAF) and compliance with KYC and AML guidelines. Unregistered entities may face penalties. The bill encourages blockchain use in public administration, authorizes smart contracts, and addresses previous regulatory concerns, potentially marking a significant policy shift after a partially vetoed crypto law in 2022. Discussions in the National Assembly are expected in the coming weeks. (Source: CryptoSlate)