Panama Supreme Court to Rule on Cryptocurrency Bill

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The Supreme Court of Panama must resolve the legal conflict that has arisen between the National Assembly and the country's presidential administration over the adoption of a bill on cryptocurrency.

Panama's Economic Committee presentedCryptocurrency Bill No. 697 for consideration by the National Assembly in September 2021. The bill regulates the tokenization of precious metals, the issuance and circulation of crypto-assets, and will also allow the government innovation body to begin testing digital identification using the blockchain. In October, the bill was approved and sent to the president of the country for signature.

However, the presidential administration announced thatSome of the provisions of the bill do not comply with the constitution, citing the fact that they violate the principle of separation of branches of government and the creation of administrative structures within the government.

The Supreme Court of Panama must decidewhether Bill 697 should be enacted or declared unconstitutional. If approved, the bill will allow Panamanians to use cryptocurrencies for any commercial or civil transactions.

Formerly President of Panama Laurentino Cortizo(Laurentino Cortizo) supported the objections of his administration and refused to sign the proposed version of the document. He drew the attention of legislators to the lack of anti-money laundering and fiscal transparency measures in the draft.