Panama Crypto Bill a Step in the Right Direction

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Panama is a known tax haven with laws encouraging financial privacy protection while being a jurisdiction with one of the globe’s lowest tax regimes. Unlike the approach taken earlier by El Salvador, which legalized Bitcoin in September 2021, making the proof-of-work private cryptocurrency legal tender, Panama’s regulation will be broader. For instance, the country’s policymakers know that cryptocurrencies are cross-cutting and rapidly evolving, including creations like NFTs.

Pay Taxes using Cryptocurrencies

A significant development with the new law is that businesses would be free to set up shop in the country and settle their tax obligations using their choice of cryptocurrencies. Although there was no express mention that Panama had made cryptocurrencies legal tender, holders can use them to pay all legal civil and commercial operations within its borders. Analysts observe that cryptocurrencies will promote financial inclusion in the country. Even though Panama is a known tax haven, only 25 percent of its population has a banking account.

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Source: DALMAS | BLOCKMAGNATES.COM

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