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Right now the Panama Congress works on two initiatives on cryptoactive.
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Master Clough explained the reasons why a key bill failed in the past.
Within the framework of the Crypto Latin Fest event in Colombia, Cryptonoticias had the opportunity to talk with Master Yeheskel Clough, legal advisor in public policies of the Chamber of Deputies of Panama, who offered details about the changes that the regulatory strategy of the country against Bitcoin (BTC) and cryptocurrencies.
The law specialist recalled that the National Assembly promoted bill 697 to give a legal framework to the use of cryptocurrencies in Panama. Although it was approved after intense debates more than three years ago, between 2021 and 2022, the Executive vetoed it and It was considered unconstitutional.
«The Executive Body, who is the one who is responsible for objecting the laws, objected because the bill 697 had a constitutional particularity that did not allow it, at that time, to be the law of the Republic. Precisely because cryptocurrencies in the Republic of Panama cannot be used for forced use, nor can they be used as a mandatory environment, since the Constitution, in article 262, does not allow it ».
Master Yeheskel Clough, Legal Advisor of the Chamber of Deputies of Panama.
In addition, The norm was questioned in terms of technological neutralitypretending to explicitly recognize networks such as Bitcoin or Ethereum. On this, Clough argued:
«Within a law as important as the use of a virtual asset or a digital asset within a territory, marked by public policies that are aimed at strengthening the country’s economy, you cannot establish cryptocurrencies of own technologies. What do I mean? We cannot as a country to recognize technologies directly as Bitcoin, Ethereum, Tron … we have to be very neutral with technologies. That is why we have focused on talking about virtual assets and what are cryptoactive in general ».
Master Yeheskel Clough, member of the National Bar Association of Panama.
Given these limitations, the Panamanian legislative effort to boost the sector decided to rethink its strategy. As explained by the Master, the new approach seeks to give legal certainty to both users and companies operating in the country, through Two complementary bills.
Clough indicated that one recognizes the voluntary use of virtual assets, while the other proposes a regulatory framework for their service providers (PSAV).
The latter, based on guide 15 of the GAFI, focuses on preventing money laundering, terrorist financing and other illicit activities. The initiative is promoted by deputy Gabriel Solís, who also talked with cryptootics and said that See your approval this year possible.
In addition to such projects, according to Solís, Panama should invest in Bitcoin, taking note of the experience of El Salvador, something that believes it would be sensible to establish it through a law.
Facing the future, Clough He was optimistic about the regulatory framework in the cryptoactive sector not only in Panama, but all of Latin America. «All countries are finding regulatory pathways precisely because the ecosystem has grown a lot,» he said.
He stressed that Panama has unique competitive advantages thanks to its financial system and its role as regional HUB. In that line, he pointed out that the State is aware that it cannot be left behind:
«We cannot ignore what other countries have been legislating and how they have been advancing, but we have to find the way and legislate in these matters that will bring economic growth, employment and new technologies venturing in Panama with a digital hub.»