Using and adopting Bitcoin and eight other crypto without limits is on the approach of being legal in Panama, according to the latest news
Lawmakers in Panama, a Latin American country known for its tax havens, have adopted a law that will regulate the use and adoption of Bitcoin and eight other cryptocurrencies, as well as allow them to be used for tax payments and private transactions.
Gabriel Silva, a Panamanian legislator who championed the initiative, said Thursday on Twitter that the legislation had been approved by the country’s National Assembly. The law will now be presented to Panamanian President Laurentino Cortizo for signing.
“This will help Panama become a hub of innovation and technology in Latin America,” Silva said, arguing that the legislation “will help create jobs and financial inclusion.”
Silva noted that the law aims to offer legislative certainty for the voluntary use of cryptocurrency as payment in Panama. Furthermore, the idea is to encourage global corporations to create offices in the Central American country while also encouraging local entrepreneurship in the Bitcoin services industry. Bitcoin will be subject to the country’s territorial tax system, which means there will be no capital gains tax on holdings in the peer-to-peer currency.
According to a translated version of the project, the legislation intends to encourage “the use of distributed ledger technology and blockchain in the digitization of the identification of natural and legal individuals in or from the Republic of Panama and as a way to make the public function visible.”
According to a draft bill released on social media by Silva, residents, banks, and legal companies in Panama would be able to utilize various cryptocurrencies as a form of payment “without limits.” Bitcoin, Ethereum, XRP, Litecoin, XDC Network, Elrond, Stellar, IOTA, and Algorand were among them.
The law also explicitly recognizes DAOs (decentralized autonomous organizations) as legal entities and establishes a framework for the government to release tokenized securities and commodities such as gold and silver through security token offerings (STO). DAOs are a common method for firms to function in the crypto world, wherein control is distributed rather than hierarchical.
