Panama introduces draft bills to regulate cryptocurrencies, digital assets are recognized as legal means of payment

PANews March 29th news, according to Cryptoslate, Panama has announced a comprehensive draft bill aimed at regulating cryptocurrencies and promoting the development of blockchain services. Under the Act, digital assets are recognized as legal means of payment, allowing individuals and businesses to freely agree on their use in commercial and civil contracts. It is explicitly authorized to use cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH) and stablecoins to purchase goods, pay for services and repay debts, provided that both parties agree.

The draft also creates a regulatory framework for Virtual Asset Service Providers (VASPs), including wallets, exchanges and custodial platforms. Each company must be registered in a national database managed by the Financial Analysis Department (UAF) and be properly authorized before Panama provides services. The bill stipulates that compliance with KYC and anti-money laundering (AML) guidelines must be mandatory in accordance with the recommendations of the Financial Action Task Force (FATF).

In addition, the bill provides that any unregistered or non-compliant entity may face administrative sanctions or criminal penalties.