In Breif:
- Republic of Panama introduced a bill to regulate cryptocurrencies.
- Panamanian Congressman Gabriel Silva shared a bill in his tweet.
- The new bill plans to make cryptocurrencies an alternative payment method in the country.
- The bill plans to impose capital gain tax on cryptocurrencies
The Republic of Panama introduced a new bill to regulate crypto, focusing on making the country “compatible with the blockchain, crypto assets and the internet.”
Panamanian Congressman Gabriel Silva announced the news on Twitter, saying that the new crypto law has “the potential to create thousands of jobs, attract investment and make the government transparent.”
Silva also shared a drafted bill along with the tweet. According to the documents, the new bill plans to make bitcoin and Ethereum as an alternative, global payment method for “any civil or commercial operation not prohibited by the judicial system of the Republic of Panama.”
The draft bill makes note of crypto advantages such as fast mode of payment and cheaper transaction cost. Some of the important points of the crypto bill include:
- Give valid certainty to crypto-asset transactions in Panama
- Inspire the use of blockchain technology in the public sector
- Attract foreign investments in Panama
- Creation of licenses to promote ventures related to digital technology and blockchain.
Followed El Salvador’s Bitcoin Approval
The development comes as El Salvador became the first country in the world to accept Bitcoin as legal tender. On Sept 7 El Salvador added 400 BTC worth of $21 million at current market prices. El Salvador made it mandatory for businesses within its jurisdiction to accept Bitcoin and USD as 2 forms of payments.
Panama’s new bill only looks at the freedom to use Bitcoin and other cryptocurrencies. It does not force obligatory bitcoin acceptance. The bill also imposed a capital gain tax on cryptocurrencies.
The bill was prepared in collaboration with citizens, industry and technology experts. The new law takes into account guidelines
