Panama redefines its strategy with Bitcoin and cryptocurrency, Congressional advisers explain

Within the framework of the Crypto Latin Fest event in Colombia, Cryptonoticias had the opportunity to speak with Yeheskel Clough Master, the legal counsel of Panama’s public policy who provided details on changes to the country’s regulatory strategy for Bitcoin (BTC) and Cryptocurrencies.

Legal experts recalled that the Parliament promoted Bill 697 to give a legal framework to the use of Panama’s cryptocurrency. It was approved after a fierce debate between 2021 and 2022 more than three years ago, but the executor refused, It was considered unconstitutional.

«The Executive Bodies, who are responsible for challenging the law, opposed because they had constitutional specialities that did not allow Bill 697 to be a Republic’s law. This is because it cannot be used to forcefully use the Republic of Panama cryptocurrency, and the Constitution is not permitted under Article 262, so it cannot be used as an essential environment.

Master Yeheskel Clough, legal counsel for Panama’s agency.

In addition, This norm was questioned in terms of technical neutrality.pretends to explicitly recognize networks such as Bitcoin and Ethereum. On this, Clough argued:

«You cannot establish a cryptocurrency of your own technology within the scope of laws that are as important as the use of digital assets within a virtual property or territory characterized by public policies aimed at strengthening the economy of the country. what do you mean? We cannot directly recognize technology as Bitcoin, Ethereum, Tron… we must be very neutral with technology. That’s why we’ve focused on talking about virtual assets and what’s generally crypto-active».

Master Yeheskel Clough, a member of the National Bar Association of Panama.

Given these limitations, Panama’s legislative efforts to boost the sector have decided to rethink its strategy. As the Master explained, the new approach is trying to provide legal certainty for both users and businesses operating in the country. Two complementary invoices.

Clough recognized the voluntary use of virtual assets, and indicated that it would propose a regulatory framework for service providers (PSAVs).

The latter is based on GAFI Guide 15 and focuses on money laundering, terrorist financing and other illegal activities. This initiative will be facilitated by Deputy Deputy Gabriel Solis. See this year’s approval.

According to Solis, in addition to such projects, Panama should invest in Bitcoin and be aware of the Salvador experience.

Faced with the future, close He was optimistic about the regulatory framework not only for Panama but for all cryptoactive sectors in Latin America.. “Every country is finding precise regulatory pathways as ecosystems have grown so much,” he said.

He emphasized that Panama has unique competitive advantages thanks to its financial system and its role as a regional hub. On that line, he pointed out that the state is aware that it will not be left behind:

“We cannot ignore what other countries are legislating and how they are going, but we must find ways to explore economic growth, employment and new technologies in Panama in our digital hub.”