Supreme Court of Panama decides the future of the local crypto industry

The Supreme Court of Panama is deciding the future of the local cryptocurrency industry after President Laurentino Cortizo sent Bill No. 697 for review and approval

The Supreme Court of Panama is in the eye of the hurricane, as it is tasked with deciding the future of the local crypto industry. The President of Panama, Laurentino Cortizo, sent Bill No. 697, known as the “crypto bill”, to the Supreme Court for review and approval. However, the government considers inapplicable articles 34 and 36 of the bill, which violate the separation of powers and establish administrative structures within the government.

President Cortizo also argued that the legislation had been approved through an inadequate procedure and had been subject to a partial veto in June 2021, considering that it needed more work to comply with new rules on fiscal transparency and the prevention of money laundering.

The dispute over the regulation of cryptocurrencies in Panama has been a hot topic between Congress and the government. In April 2022, Panamanian legislators approved a proposal to regulate cryptocurrencies, including Bitcoin, but President Cortizo warned that he would not sign it unless it included additional rules against money laundering.

The bill was introduced in September 2021 with the goal of making the country fit for the digital economy and would regulate the use of crypto assets as a payment alternative, the tokenization of precious metals, and the issuance of digital securities. In addition, it would explore the digitization of identity through blockchain.

The decision of the Supreme Court will be crucial for the future of the crypto industry in Panama and will determine if the legislation is applied or declared inapplicable.


Source: Decrypt

(Reference image source: SOS Empresas Panama)

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