Republic of Panama introduces regulation law for cryptocurrencies

With Bitcoin (BTC) turning into authorized tender in El Salvador, one other Central American nation is making strides in direction of enabling free use of cryptocurrencies like BTC and Ether (ETH).

On September sixth, the Republic of Panama offered a invoice on crypto regulation, which goals to make the nation “compatible with blockchain, crypto assets and the internet”.

Notify On Twitter, crypto-friendly Panamanian Congressman Gabriel Silva confused that the brand new regulatory initiative has the potential to create hundreds of jobs, create new sources of funding and make the federal government “more transparent”.

According to the draft law shared by Silva, the brand new law envisages recognizing crypto-assets like Bitcoin as a substitute international cost technique for “any commercial or civil activity that is not subject to interference,” prohibited by the authorized system of the Republic of Panama “. The authors of the bill emphasize that cryptocurrencies enable quick and inexpensive payments and enable them to complete financial transactions “regardless of the gap between the events and the amount of transactions”.

Unlike the government of El Salvador, which has obliged local companies to accept Bitcoin in exchange for goods or services along with US dollars, Panama’s new law on cryptocurrencies is not supposed to require its acceptance. Instead, legislation calls for the introduction of freedom to use cryptocurrencies such as Bitcoin and Ethereum in Panama, local television network Telemetro reported.

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Silva said the new bill was drawn up in collaboration with Panamanian citizens and a multidisciplinary team made up of industry and technology experts. He noted that the legislation was based on key guidance from international organizations such as the Financial Action Task Force.

Amid El Salvador’s decision to accept Bitcoin as its official currency, many countries in Central America have turned to the cryptocurrency industry. In late August, a company in Honduras reportedly installed the country’s first Bitcoin ATM that allows users to buy BTC and ETH using the local fiat currency, Lempira.