The high court is now determining if they should render the "crypto bill" invalid or allow it withrevisions.Panama's story with the crypto bill has taken on a new turn, and the Supreme Court of thecountry will ultimately decide what is to become of the digital currency sector.On January 26th, President Laurentino Cortizo of Panama presented the crypto legislationthat had been passed the year prior to the High Court for evaluation, expressing concernsthat the "crypto bill" was in conflict with the fundament values of the constitution and thus,was unable to be carried out.The Supreme Court must now come to a conclusion as to whether Bill No. 697 is invalid or ifthey should allow it with certain changes.The president's office has declared articles 34 and 36 of the bill to be void due to theircontradiction of the constitution's stipulations regarding the separation of state powers andtheir introduction of bureaucratic measures into governmental processes.President Cortizo expressed his objection to the process in which the bill had been ratified,subsequent to his partial veto of the bill in June. He further pointed out that the bill neededamendment in order to satisfy fresh guidelines issued by the Financial Action Task Force,working towards greater fiscal clarity and avoiding money laundering.In April, Panama's National Assembly passed a bill that proposed regulating cryptocurrenciesin the country, such as Bitcoin. President Cortizo later voiced his disapproval of the bill,declaring it would not be signed unless it included provisions for preventing moneylaundering. This sparked a dispute between the government and the Assembly.On September 2021, the bill was presented with the aim of helping the nation transition intothe digital economy, blockchain, crypto assets and the internet. The Economic AffairsCommittee cleared the bill of April 21, and it was approved shortly afterwards.According to the law, Panamanians are allowed to use cryptocurrencies, such as Bitcoin andEthereum, as payment for any type of transaction – either civil or commercial.Additionally, the proposed legislation would control the transformation of precious metals intotokens and the production of digital value. The innovation arm of the government would alsoinvestigate the application of blockchain or distributed ledger technology for digitalizingidentity.



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