Panama passes law to regulate Bitcoin, legally recognizes DAOs and eliminates taxes

English Apr 29, 2022

Panama's legislature has just passed a bill that would regulate the use of cryptocurrencies in the country. The "Crypto Law" only needs to be signed by the president of the country before it goes into effect.

The bill states that it regulates the trading and use of cryptocurrencies, the issuance of digital value, tokenization of precious metals and other assets, payment systems and other provisions.

Local politicians believe that the new project will help the country become a hub of innovation and technology in Latin America and that the technological boost comes from small actions such as being able to buy everyday goods with cryptocurrency.

The law stipulates that cryptocurrencies will now be a valid form of payment "for any legal civil or commercial operation", including the payment of taxes, fees and duties to the government.

Finally, the law also gives the government more power to use blockchain technology, with the “digitization of the identity of individuals and legal entities” to create more transparency and recognizes DAOs, decentralized autonomous organizations, as legal entities with the capacity to issue bonds and Tokenized commodities such as gold and silver through tokens (STOs).

Tags

Morel Hernandes

Writer passionate about politics, economics, blockchain and crypto-currencies.