Panama Proposes Comprehensive Legislation for Cryptocurrency Regulation and Blockchain Development

According to Odaily, Panama has introduced a comprehensive draft aimed at regulating cryptocurrencies and advancing blockchain services. The new legislation recognizes digital assets as legal payment methods, allowing voluntary use of Bitcoin, Ethereum, and stablecoins in commercial and civil contracts. It establishes a regulatory framework for Virtual Asset Service Providers (VASPs), requiring them to register with the Financial Analysis Unit (UAF) and comply with KYC and AML regulations, with penalties for non-compliance. Additionally, the bill promotes the use of blockchain in public governance, supporting digital identity systems and tokenized securities to enhance transparency and efficiency. The draft will be discussed in Congress in the coming weeks.