The National Assembly of Panama has passed a law to regulate bitcoin and the cryptocurrency market. Officials in the country anticipate that the law would foster innovation and strengthen the economy.
The National Assembly of Panama has passed a law regulating cryptocurrencies, according to the legislative body’s official Twitter account, which was published on April 28. The legislation governs the marketing and usage of cryptocurrencies, as well as the tokenization of precious metals and other goods, payment systems, and other aspects.
The law is fairly comprehensive, and it regulates a wide range of aspects of the cryptocurrency sector. The country’s president, Nito Cortizo, has yet to sign and that is expected.
Officials appear to be focusing on building an environment conducive to creativity, with some predicting that this will help Panama become a Latin American centre for innovation and technology. They also anticipate that it will benefit citizens by assisting in the creation of jobs and fostering financial inclusion.
Panama is the latest country to enact legislation to regulate cryptocurrency. Although not all of these initiatives are in the same direction, the majority of them are willing to accept cryptocurrency as long as it conforms with AML and KYC standards, as well as investor protection measures.
Developing countries are the most enthusiastic about allowing cryptocurrency since they stand to benefit the most. The economies of the world’s largest countries are significantly more conservative. The US has only recently launched attempts to regulate cryptocurrency, China has outright outlawed cryptocurrency, and India claims that global cooperation is needed to combat illicit behaviour.
