Panama has introduced a comprehensive draft bill designed to regulate cryptocurrencies and boost blockchain services establishing itself as a fintech hub in Latin America. The bill provides a robust legal framework for digital assets in financial transactions setting licensing standards for providers and aligning with global financial protocols.

Digital currencies such as Bitcoin and Ethereum gain legal status as acceptable payment forms for goods and services with full consent between parties. The initiative includes a registration mandate for Virtual Asset Service Providers ensuring adherence to stringent Know-Your-Customer and anti-money laundering norms under the Financial Action Task Force guidance.

Beyond the financial scope the legislation promotes blockchain in public sectors through digital identities and tokenized securities which could revolutionize governance and enhance transparency. Smart contracts receive legal backing encouraging innovative and efficient business practices. The bill now heads to the National Assembly for further deliberation and potential enactment marking a pivotal step in Panama’s digital finance journey.

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