A couple of months ago, Panama made a significant announcement regarding an important law project, and the mayor of Panama District, Mayer Mizrachi, made an appearance at the Bitcoin Conference in Las Vegas. However, after the hype, we wanted to revisit the project, as the Panama crypto law could unlock an essential hub for bitcoin and crypto adoption, with established and well-known bank connections.
“Panama’s experience with Bill No. 697 was key. It showed us that regulating crypto requires more than good intentions: it demands alignment with international standards, tax clarity, consumer protection, and institutional coordination”, Alternate Deputy and crypto law’s champion, Gabriel Solis, explained to me in an interview.
Panama Crypto Law And Its Context
Solis referred to a previous law project, Bill No. 697. This was Panama’s first significant attempt to regulate cryptocurrencies, introduced in 2021 and approved by the National Assembly in April 2022. President Laurentino Cortizo partially vetoed the proposal in June 2022 due to concerns over anti-money laundering compliance, regulatory oversight gaps, and constitutional conflicts. In 2023, the Supreme Court declared the bill inapplicable.
Solis used this as an example and as part of the lawmaking learning process. “Bill No. 247 addresses this: it creates the National Council for Digital Assets, explicitly aligns with the 40 FATF recommendations, defines a special tax regime, and establishes clear implementation phases. It’s not just an adoption bill—it’s a bill about trust and institutional maturity,” Solis detailed.
The crypto law, known in the chambers as Bill No. 247, is a renewed and more robust legislative effort to regulate cryptoassets in Panama, introduced in 2025 by Alternate Deputy Solís. It establishes a clear legal framework that recognizes Bitcoin, Ethereum, and stablecoins as valid payment methods under mutual agreement, requires licensing of Virtual Asset Service Providers registered with the Financial Analysis Unit, and mandates compliance with KYC and AML standards aligned with FATF recommendations.
The draft also envisions broader applications of blockchain in public administration, such as digital identities, tokenized securities, and legally enforceable smart contracts. Central to the bill is the creation of the National Council of Digital Assets to oversee coordination and governance, as Solis explained to local newspaper La Estrella in a recent interview.
One notable difference between 2021 and the present is the level of local awareness and interest. “We’ve seen increased interest from the banking sector toward the crypto ecosystem: Towerbank, Canal Bank, Credicorp Bank, and recently Caja de Ahorros have taken concrete steps to engage with this digital economy,” the Panamanian politician explained. “As the National Assembly, it’s our responsibility to provide legal certainty to the industry, protect users, and position Panama as a regional leader with a modern, solid, and forward-looking regulatory framework,” Solis underscored.
Compared to what is happening in the region, this law is trying to replicate the success of El Salvador’s Bitcoin Law. Yet, this path will begin with learning about the adoption process and be oriented towards the strengths Panama has to offer. As an international logistical and financial hub, Panama’s adoption of bitcoin and cryptocurrencies could boost interest in the country and make it an appealing destination for investors and companies.
The law contemplates the voluntary acceptance of BTC and cryptocurrencies. “Unlike mandatory legal tender models, ours ensures contractual freedom and legal certainty, allowing fintech companies to operate in a regulated yet flexible environment. This positions Panama as a “safe harbor” for digital innovation: with clear rules, an open market, and respect for the decisions of citizens and businesses,” Solis explained.
We asked about the blockchain implementations. In general, broader use cases of distributed ledger technologies are an evolving area. For Solis, the most evident use case is the property registry and the inscription of public deeds.
“Currently, there are delays, costs, and documentation insecurity. Blockchain can create a verifiable, immutable, and real-time accessible system that saves time for both the state and citizens. We also propose using blockchain for digital identity and tax payments, marking a new era of trust and efficiency”, Solis concluded.
The Panama crypto law could transform the country. This idea is among its goals, and is based on the capital that can be possibly unlocked. Tax exemptions for up to five years for blockchain startups and preferential capital gains treatment if assets are held for more than three years are among the incentives.
