Crypto Regulation: Supreme Court of Panama to Decide the Fate

• The Panamanian National Assembly approved the crypto bill in 2022, allowing private and public usage of cryptocurrencies.
• President Cortizo argued that the bill violated the fundamental values of the constitution and was therefore unenforceable.
• The legislation supports a variety of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Stellar, XRP, XDC Network, IOTA, Algorand, and Elrond.

Panama’s Crypto Legislation

The Panamanian National Assembly recently approved a crypto bill in 2022 which allows private and public usage of cryptocurrency assets. This law has been subject to dispute between the government and the Panamanian congress as President Laurentino Cortizo argued that it violated some fundamental values of the constitution and was therefore unenforceable. The Supreme Court is now ruling on this issue to determine the future of Panama’s crypto market.

The Bill Allowed Private & Public Usage of Crypto Assets

The bill proposed by President Cortizo created administrative structures within the government which violates state’s separation of powers according to him. Following his partial disapproval in June 2020 he stated further revisions were necessary for it to comply with new regulations proposed by Financial Action Task Force meant for increasing financial transparency and stopping money laundering activities. This legislation allowed private and public usage of cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Stellar (XLM), Ripple (XRP), XDC Network (XDCN), IOTA (MIOTA), Algorand (ALGO) and Elrond (ERD).

Benefits Of The Law For Citizens

The Crypto Asset Law created for making transactions simpler for citizens of Panama. It not only applies to Bitcoin but also various other cryptocurrencies mentioned above. Compliance with this law may place Panama third in line globally when it comes to handling cryptocurrencies equally to fiat currency. President Cortizo approved this legislation however would not sign it until Anti-Money Laundering (AML) regulations are included as well.

Issues With The Legislation

While president appreciates importance of this law however there are some issues associated with its implementation too due to lack sufficient process or incomplete information given while approving it initially by national assembly members or problems faced while abiding by AML regulations set forth by FATF etc which needs be addressed before taking them into effect completely so that all stakeholders involved have peace mind about security their funds/assets etc .

Conclusion

Crypto Asset Law is monumental step taken towards making use digital currencies easier mainstream Panama but concerns regarding its enforcement remain still needs discussed properly before its full implementation . As Supreme Court is ruling on this matter hopefully decision reached will beneficial all parties involved establishing safer environment digital transactions .