Panama: New Law on Cryptocurrencies and Digitalization of the Economy

Situated at the strategic crossroads of North and South America, Panama has long established itself as a key international offshore center. The opening of the Panama Canal in 1914 attracted numerous businesses due to favorable tax regimes and a favorable legislative environment. The country has become attractive for company registration, bank accounts and various financial services, which has made it an important player on the global stage.

New Bill: Vector for Digitalization

Today, in the context of rapid technological development and the growing popularity of cryptocurrencies, Panama is preparing to take another step forward in its financial development. The country's National Assembly is considering a new bill that could change the rules of the game in the financial sector. The document proposes the recognition of cryptocurrencies as legal tender, as well as the introduction of blockchain technologies in public administration.

The initiator of this bill was a group of legislators led by MP Gabriel Silva. According to him, the new law will not only streamline the digital asset market, but will also become a powerful driver of economic growth by attracting fintech companies and investors. If the law is adopted, all virtual asset operators, such as crypto exchanges and wallet providers, will have to register and comply with international anti-money laundering (AML) and Know Your Customer (KYC) standards.

Chances of Successful Adoption

This is Panama’s second attempt to integrate cryptocurrencies into its legislation. In 2022, Bill 697 was proposed, which was partially approved, but its implementation was suspended due to insufficiently strict anti-money laundering measures. The new bill takes into account previous comments and aims to comply with international requirements, which significantly increases its chances of successful adoption.

Panama is making a confident step towards creating a modern digital economy and aims to take one of the leading places in the global fintech ecosystem. The IT-OFFSHORE company is ready to offer offshore registration services, helping clients to make the most of the advantages that this country offers.