Panama Moves to Regulate Cryptocurrency Amid Rising Criminal Activity

New Law Brings Digital Currency Market Under Control

Panama’s National Assembly has passed a bill regulating cryptocurrency, aiming to bring the country’s booming digital currency market under control. The new law is expected to provide a framework for the use of cryptocurrencies such as Bitcoin and Ethereum, but it also raises concerns about the potential for increased financial crime.

A Hub for Cryptocurrency Activity

According to experts, Panama has become a hub for cryptocurrency activity in recent years, with many individuals and businesses using the country’s lax regulations to launder money and engage in other illicit activities. The new bill is seen as an attempt by the Panamanian government to crack down on these practices and bring the country into line with international standards.

Key Provisions of the New Law

• Requires cryptocurrency exchanges and related businesses to register with the government and undergo regular audits
• Imposes strict requirements for anti-money laundering (AML) and know-your-customer (KYC) procedures

Experts Warn That More Action is Needed

While the new bill is a step in the right direction, some experts warn that it may not be enough to stem the tide of financial crime in Panama. “This law is a good start, but it’s just the beginning,” said one expert. “We need to see more action from the government to address the root causes of these problems and prevent them from happening in the first place.”

International Attention

As Panama continues to grapple with the challenges of cryptocurrency regulation, other countries are taking note. Some have already implemented similar laws and regulations, while others are considering following suit.

FATF Report Highlights Continued Struggles

A recent report by the Financial Action Task Force (FATF) highlighted Panama’s continued struggles with money laundering and terrorist financing. The country was placed on the FATF’s “gray list” in 2019 due to concerns about its lack of progress in addressing these issues.

Government Vows to Do More

The Panamanian government has vowed to do more to address these problems, but it remains to be seen whether the new cryptocurrency law will be enough to make a significant impact. As one official noted, “We recognize that we have a long way to go in terms of regulating cryptocurrencies and preventing financial crime, but we’re committed to doing what it takes to get there.”