Cryptocurrency Compliance Issues Plague Panama, Experts Warn

Panama’s lack of strict regulations on cryptocurrency has raised concerns among financial experts and officials. While the country has not banned digital currencies such as bitcoin, a legal framework for their use remains elusive.

The Uncertain Regulatory Landscape

A bill presented to the National Assembly in January 2021 aims to address this issue, but its passage is uncertain. The bill, sponsored by local deputy Rolando Rodríguez, seeks to establish a regulatory framework for companies operating with digital assets. According to Rodríguez, the legislation would bring “financial freedom” to those who lack access to traditional banking systems.

Expert Concerns

However, experts warn that Panama’s passive approach to cryptocurrency regulation leaves the country vulnerable to financial crimes and money laundering. In a global context, most jurisdictions are still grappling with the legal status of cryptocurrencies.

Global Comparison

• The United States considers crypto miners to be money transmitters subject to specific laws.
• Israel treats crypto mining as a business and subjects it to corporate income tax.
• India and other countries continue to face regulatory uncertainty.

The Importance of Clear Guidelines

Despite the lack of clear guidelines, very few countries have outright banned cryptocurrency-related activities. Freeman Law’s Cryptocurrency Law Resource page provides a summary of the legal status of cryptocurrencies for each country worldwide. The platform offers insights on statutory or regulatory provisions governing digital currencies.

Seeking Guidance

For those with questions about cryptocurrency, digital currencies, or blockchain technology, Freeman Law is available to provide guidance on tax planning and compliance. Contact us now to schedule a consultation or call (214) 984-3410 to discuss your concerns.