Is Panama Poised to Emerge as LATAM’s Next Crypto Republic? Key Insights on the Crypto Crypto law Bill
The crypto legislation in Panama seeks to legalize optional cryptocurrency payments and draw in blockchain companies, potentially offering additional tax advantages. Could this position Panama as a crypto center in LATAM?
While intense discussions are taking place regarding the Panama Canal’s oversight and fears of Chinese involvement threatening U.S. safety, significant changes are also occurring within Panama. Current update from the country underscores renewed initiatives to manage and promote crypto asset alongside blockchain, solidifying its status as a financial hub in Latin America (LATAM).
Panama Crypto Legislation 2025: Key Information
A proposed compliance bill aiming to establish a legal framework for crypto assets was submitted on March 27, 2025.
Despite the positive outlook of this initiative, its effectiveness is yet to be seen, given the history of regulatory challenges.
The 2022 Bill No. 697 was enacted to incorporate cryptocurrencies into the economy. It was designed to allow prominent altcoins like BTC, ETH, and other digital currencies for transactions, while also encouraging the tokenization of real-world assets and integrating blockchain into governance.
Despite robust backing from legislators, the bill faced a veto amid worries regarding anti-money laundering (AML) measures and constitutional concerns. In 2023, the Supreme Court also ruled it unconstitutional, halting any further progress.
The bill from March 27 represents another effort to counter previous critiques. It also aims to create a framework to attract crypto investments and stimulate innovation.
For example, it permits businesses and individuals to voluntarily accept digital currency. All virtual asset service providers—including wallets and exchanges—must register and obtain licenses to combat money laundering and illicit activities.
Panama was once a haven for unregulated crypto businesses—minimal oversight, maximal freedom.
That may be changing.
Fresh legislation has just been introduced:
The wild west is becoming more structured
Creators:…— Dave Burrells (@dburrells) March 28, 2025
The proposal includes utilizing blockchain for governance, establishing digital identity systems, and tokenization to foster integration. Panama is set to provide incentives to stimulate activity, explaining its potential as one of the top destinations for digital currency enterprises.
Already a favorable tax location, the country may introduce added benefits for crypto businesses looking to set up operations, although specific information is yet to be revealed.
Currently, the bill is under evaluation by the National Assembly. Modifications may occur prior to the final vote, after which it must receive presidential approval to become law. This could lead to a surge in activity and redirect capital towards some of the top cryptocurrencies to consider.
The Importance of the Panama Crypto Bill
Panama already serves as a financial center and a tax haven for businesses. If this bill is enacted and receives presidential endorsement, it could transform Panama into a preferred location for digital currency firms across Latin America, enabling citizens to launch some of the most popular meme coins on platforms like Solana.
With crypto payments being optional, Panama’s success could serve as a model for other countries in the region, potentially positioning it at the forefront of LATAM’s crypto regulatory advancements.
Nevertheless, Panama is proceeding cautiously. Up until recently, the nation was on the European Union’s blacklist and was under scrutiny by the Financial Action Task Force (FATF) regarding money laundering concerns. Even with approval, its openness to crypto could be compromised. This may be amplified if enforcement becomes excessively rigorous, as the country aims to avoid external pressures.
Additionally, critics point out that a voluntary framework is less assertive. The lack of a state-led initiative, such as a Bitcoin or crypto reserve as proposed in the U.S., restricts Panama’s pro-crypto stance.
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2025 Panama Crypto Regulation Bill: A Step Towards a LATAM Crypto Republic?
- The Panama crypto bill legitimizes optional cryptocurrency transactions and encourages distributed ledger utilization
- Tax-attractive Panama may provide benefits for crypto asset enterprises, but strict AML regulations could limit its attractiveness
- Will the president endorse the bill and motivate other Latin American nations despite pressures from the EU and FATF?
The post Is Panama About to Become LATAM’s New Crypto Republic? Everything to Know About the Crypto Regulation Bill appeared first on 99Bitcoins.
