Panama Supreme Court to Rule on Cryptocurrency Bill

The Supreme Court of Panama must resolve the legal conflict that arose between the National Assembly and the presidential administration of the country regarding the adoption of the cryptocurrency bill.

The Panamanian Economy Committee submitted Cryptocurrency Bill No. 697 to the National Assembly in September 2021. The bill regulates the tokenization of precious metals, the issuance and circulation of cryptoassets, and will also allow the state agency for innovation to start testing digital identity using the blockchain. In October, the bill was approved and sent for signature to the President of the country.

However, the presidential administration announced that some of the provisions of the bill are not in accordance with the constitution, citing the fact that they violate the principle of separation of powers and the creation of administrative structures within the government.

Panama's Supreme Court is to decide whether Bill 697 should be enacted or declared unconstitutional. If approved, the bill would allow Panamanians to use cryptocurrencies for any commercial or civil transactions.

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