- Panama introduces a draft bill, legalizing cryptocurrency for payments and addressing blockchain regulation.
- Gabriel Silva leads efforts with a focus on creating a balanced regulatory framework.
- The initiative aims to establish Panama as a regional blockchain innovation hub.
Panama published a draft bill on March 28, 2025, aimed at regulating cryptocurrencies and fostering blockchain services development within its borders.
Gabriel Silva announced via Twitter efforts for improved legislation to position Panama as a blockchain innovation leader. The proposal, if enacted, would authorize digital currencies such as Bitcoin (BTC) and Ethereum (ETH) as legal payment forms.
Panama Recognizes Cryptocurrencies for Legal Payments
Panama’s draft bill introduces digital assets as recognized legal means of payment, applicable in commercial and civil contracts, as long as parties consent. The bill also enforces a regulatory framework, requiring virtual asset service providers to register within the national database and to comply with FATF’s KYC and AML policies. Not complying could lead to administrative or criminal penalties.
With this legislation, the country looks to transform into a central blockchain hub. President José Raúl Mulino emphasized this goal, highlighting the upcoming Panama Blockchain Week as a pivotal moment. Congressman Gabriel Silva, a driving force behind this legislation, ensures balanced regulation. The revised bill seeks to address past obstacles, such as those with the 2022 proposal, which faced legal hurdles after being declared unconstitutional in 2023.
Community reactions have been optimistic with sector stakeholders praising the move. Marta Ambor, from Panama Blockchain Week, stated that Panama is set to become a regional blockchain hub, facilitating this vision through global collaboration and engagement.
Current Market Trends and Regulatory Challenges
Did you know? Panama’s drive towards cryptocurrency regulation faced significant setbacks earlier when its Supreme Court ruled against a previous crypto law in 2023, marking a significant legal challenge in the country’s pursuit of blockchain innovation.
Bitcoin (BTC) currently trades at $84,152.58, with a market cap of $1.67 trillion, representing a 61.08% market dominance. The 24-hour trading volume stands at $33.54 billion, with a recent 24-hour price decline of 3.01%. The data is sourced from CoinMarketCap as of March 29, 2025.
Coincu research highlights Panama’s commitment to bridging gaps between innovation and regulatory frameworks. The legislative efforts aim to foster a secure environment for digital transactions while reducing financial crime risks, ultimately benefiting both local and foreign investors.
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