The new legislation regulates the trading and use of cryptocurrencies, the issuance of digital value, tokenization of precious metals and other assets, payment systems, and dictates other provisions.
The bill seeks to provide regulatory clarity for the optional usage of cryptocurrencies as payment in Panama. Moreover, the goal is to incentivize foreign companies to open offices in the Central American country as well as to foster local entrepreneurship in the cryptocurrency services business. The country's territorial tax system will also apply to Bitcoin, meaning there will be no capital gains tax on investments in the peer-to-peer currency.
The bill now heads to Panamanian President Laurentino Cortizo’s desk, where he’ll have the option to veto the proposal or sign it into law.
Despite creating a framework for the usage of Bitcoin and cryptocurrencies as payment methods in the Panamanian economy, the country is not making Bitcoin a legal tender to the likes of El Salvador or the Central African Republic.
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