Panama and Cryptocurrency

Panama  Cryptocurrency Laws
Regulation of Digital Currencies: Cryptocurrency, Bitcoins, Blockchain Technology

Cryptocurrency is currently legal in Panama; however, the country lacks strict regulations and currently operates under a more passive approach. The government appears facially receptive towards the use and establishment of blockchain technology and cryptocurrencies.[1] Local deputy (MP) Rolando Rodríguez has presented a bill addressing the subject to the Commerce Commission of Panama’s National Assembly in January of 2021.[2] The bill, if passed, would establish a legal framework for Panamanian companies that want to do business with digital assets, such as bitcoin. The MP clarified that the crypto bill aims to bring “financial freedom” to all the Panamanians who do not have access to the traditional banking system.[3]

P.S. Insights on Cryptocurrency Legal Issues

Most jurisdictions and authorities have yet to enact laws governing cryptocurrencies, meaning that, for most countries, the legality of crypto mining remains unclear.

Under the Financial Crimes Enforcement Network (FinCEN), crypto miners are considered money transmitters, so they may be subject to the laws that govern that activity. In Israel, for instance, crypto mining is treated as a business and is subject to corporate income tax. In India and elsewhere, regulatory uncertainty persists, although Canada and the United States are relatively friendly to crypto mining.

However, apart from jurisdictions that have specifically banned cryptocurrency-related activities, very few countries prohibit crypto mining.

Our Freeman Law Cryptocurrency Law Resource page provides a summary of the legal status of cryptocurrency for each country across the globe with statutory or regulatory provisions governing cryptocurrency.  The globe below provides links to country-by-country summaries:

Podcast:

The Freeman Law Project – Cryptocurrency Regulation and Taxation: A Brief Primer

Is cryptocurrency legal in Panama?

Do you have questions about cryptocurrency, digital currencies, or blockchain technology?
Freeman Law can help with digital currencies, tax planning, and tax compliance. Contact us now to schedule a consultation or call (214) 984-3410 to discuss your cryptocurrency and blockchain technology concerns.


[1] La Estralla De Panama, “Diputado presenta ante la Asamblea Nacional anteproyecto para regular en Panamá las monedas virtuales”, 01/17/2021, https://www.laestrella.com.pa/nacional/210117/210118-diputado-presenta-asamblea-anteproyecto-regular-panama-monedas-virtuales

[2] Id.

[3] Id.

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