Panama approves the use of cryptoassets, but Bitcoin is flat below $40,000
By Noemi Jansana / Alejandra Zamora
Date: Friday 29 Apr 2022
(Sharecast News) - Lawmakers in Panama's National Assembly approved a bill to regulate the use and trading of cryptoassets in the Central American country, known for being a hub for offshore financial services, on Thursday. This is a new regulatory validation for the queen of cryptocurrencies after becoming official in the Central African Republic. However, despite this, Bitcoin is still flat below $40,000.
The digital currencies market leaves mixed signs on Friday, with soft rises for tokens such as Bitcoin itself or Ethereum, although neither is able to recover the important control zones, the aforementioned $40,000 for Bitcoin and $3,000 for Ethereum. The total capitalization sits at $1.8 trillion.
The Panamanian bill opens the door to private and public use of cryptoassets, and will make it possible for individuals to pay their taxes with cryptocurrencies. Experts warned, however, that it could increase Panama's reputation as a place lacking in financial transparency.
The legislation is broader in scope than measures passed by El Salvador, which made bitcoin legal tender last year, stated independent lawmaker and bill sponsor, Gabriel Silva. "We are seeing the emergence of many types of cryptoassets, such as works of art," he commented. "That's why we didn't want to limit ourselves to just cryptocurrencies."
The bill covers the trading and use of cryptoassets, the issuance of digital securities, new payment systems and the tokenization of precious metals. Tokenization is when the rights to an asset are converted into digital formats.
This regulation, which now goes to President Laurentino Cortizo for his signature, was approved in the assembly with 38 votes in favor, two abstentions and no votes against. Belisario Castillo Saenz, CEO of tokenization company Feänor Corp, argued that cryptoassets could help the unbanked, given that internet penetration is high in Panama but only one in four people have a bank account.
Under the new legislation, Panamanians will be able to use cryptoassets as a means of payment for any civil or commercial transaction that is not prohibited by law in the country.
Panama is on the European Union's list of tax havens, and Romain Dromard, chief executive of financial investment advisory firm K&B Family Office, warned that the cryptoassets bill would not help it appear more transparent.
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