Panama has passed a legislation enjoying cryptocurrencies

Panama has passed a legislation enjoying cryptocurrencies ...

Panama''s central American country adopted a broad-resolution bill on crypto assets on Thursday. The bill will encourage cryptocurrency use for both public and private use.

The bill was approved with 38 supporting votes and two abstentions. There were no votes against it, which now has to be signed by President Laurentino Cortizo.

According to the bill''s text, the law regulates the trading and use of crypto-assets, the emitting of digital value, the tokenization of precious metals, and other assets, as well as payment methods.

Decentralized autonomous organizations are also recognized in the bill.

Panama is currently dependent on the US dollar as its primary currency.

Panama must be positioned as the hub of technology innovation in Latin America, according to Gabriel Silva, a member of the National Assembly, who promoted the measure. "This will help create employment and financial inclusion."

Panamanians will be able to utilize cryptocurrency to pay their taxes, as well as other benefits.

The Panama-wide reputation as a hub for tax fraud and offshore capital flight has pushed the country''s reputation to the Panama papers. Experts argue that the crypto regulation legislation might further increase the lack of financial transparency in the country.

"Panama was already in a bad situation, and these payment methods are failing to meet the required due diligence procedures, according to Romain Dromard, the CEO of K&B Family Office.

Despite not making Bitcoin legal tender as it was in El Salvador last year, the regulation is considered more "robust" by some Panamanian politicians. "We cannot only establish Bitcoin because that will be unconstitutional and if it is unconstitutional, then the project will not happen," Silva said on Twitter places.

There will be no capital gains taxes on crypto assets, which will be classified as foreign income.

It is also noteworthy to try to increase the transparency of the state by using blockchain technology to make the state''s functions more public and easier to track. It remains to be seen how this will be implemented.

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