Is Panama About to Become LATAM’s New Crypto Republic? Everything to Know About the Crypto Regulation Bill

The Panama crypto bill aims to legalize voluntary crypto payments and attract blockchain firms, possibly with more tax incentives. Could this make Panama a LATAM crypto hub?

Amid heated debates over the control of the Panama Canal and whether Chinese operators threaten U.S. national security, other key developments are unfolding in Panama. Top Panama news highlights fresh efforts to regulate and promote crypto and blockchain, cementing its position as a financial hub in Latin America (LATAM).

Panama Crypto Bill 2025: What You Should Know

A draft crypto regulation bill seeking to create a legal framework for crypto assets was submitted on March 27, 2025.

While this move is bullish, its success remains uncertain, given previous regulatory setbacks.

2022 Bill No. 697 was passed to integrate crypto into the economy. It aimed to allow the use of top altcoins like Bitcoin, Ethereum, and other digital assets for payments while encouraging real-world asset tokenization and blockchain integration into governance.

Despite strong legislative support, the bill was vetoed due to concerns over anti-money laundering (AML) measures and constitutional issues. In 2023, the Supreme Court also declared it unconstitutional, halting progress.

The March 27 bill is another attempt to address past criticisms. They also seek to establish a framework that attracts crypto investment and fosters innovation.

For instance, it allows businesses and individuals to accept crypto voluntarily. All virtual asset service providers—including wallets and exchanges—must register and obtain licenses to counter money laundering and illicit activities.

Panama used to be a playground for unregulated crypto biz—low oversight, high freedom.

That era might be over.

🇵🇦 New legislation just dropped:
⚖️ Voluntary crypto payments = legalized
📜 But… the regulatory net is tightening

The wild west is civilizing 🤠➡️🏛️
Builders:…

— Dave Burrells (@dburrells) March 28, 2025

The bill proposes using blockchain in governance, digital identity systems, and tokenization to promote integration. Panama offers incentives to encourage activity, explaining why it may be one of the best countries for crypto businesses.

Already tax-friendly, the country may roll out additional perks for crypto businesses seeking to establish a base, though specific details remain undisclosed.

The bill is currently under review in the National Assembly. Amendments may be made before the final vote, after which the president must sign it into law. This could potentially create a boom and force capital to some of the best cryptos to buy .

Panama Crypto Hub: Why This Bill Matters

Panama is already a financial hub and a tax haven for companies. If this bill becomes law and is endorsed by the president, Panama could emerge as a go-to destination for crypto firms in Latin America, even allowing citizens to launch some of the best meme coins on platforms like Solana.

Since crypto use for payments is optional, Panama’s success could serve as a blueprint for other countries in the region. Accordingly, Panama may even top LATAM crypto regulation trends.

However, Panama is playing safe. Until recently, Panama was on the European Union blacklist and scrutinized by the Financial Action Task Force (FATF) for money laundering. Even if approved, its crypto-friendliness could be diluted. This will be especially true if enforcement becomes overly strict, as they don’t want to come under external pressures .

Moreover, critics argue that the voluntary approach is less aggressive. The absence of a state-driven push, such as a Bitcoin or crypto reserve like that proposed in the United States, limits Panama’s “pro-crypto” boldness.

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