Panama Introduces Cryptocurrency Regulation Bill, Recognizes Digital Assets as Legal Tender

BlockBeats News, March 29th, according to Cryptoslate, Panama has unveiled a comprehensive draft bill that will regulate cryptocurrency oversight and promote the development of blockchain services. Under this bill, digital assets are recognized as a legal form of payment, allowing individuals and businesses to freely agree on their use in commercial and civil contracts. It explicitly authorizes the use of cryptocurrencies such as Bitcoin, Ethereum, and stablecoins to purchase goods, pay for services, and settle debts, provided both parties agree.

The draft bill also establishes a regulatory framework for Virtual Asset Service Providers (VASPs), including wallets, exchanges, and custody platforms. Each company must register in a national database managed by the Financial Analysis Unit (UAF) and obtain the necessary authorization before providing services in Panama. The bill mandates compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) guidelines based on the Financial Action Task Force (FATF) recommendations, and any unregistered or non-compliant entity may face administrative sanctions or criminal penalties.