Bill 247.

Summary.

The bill regulates cryptoasset activities conducted by individuals and legal entities in the Republic of Panama. It defines cryptocurrencies, tokens, exchanges, virtual asset service providers and related technologies and services. It sets principles of legal certainty, transparency, financial inclusion, consumer protection and technological neutrality. It creates the National Digital Assets Council (Consejo Nacional de Activos Digitales, CONAD), with representatives from the Superintendency of Banks of Panama (Superintendencia de Bancos de Panamá), Securities Market Superintendency (Superintendencia del Mercado de Valores), National Authority for Government Innovation (Autoridad Nacional para la Innovación Gubernamental), Ministry of Commerce and Industries (Ministerio de Comercio e Industrias), Directorate General of Revenue (Dirección General de Ingresos), Ministry of Economy and Finance (Ministerio de Economía y Finanzas), National Bank of Panama (Banco Nacional de Panamá) and Banking Association of Panama (Asociacion bancaria de Panamá). The council would formulate policies, issue supervisory guidelines, coordinate institutions and report periodically to the National Assembly (Asamblea Nacional).

Entities providing cryptocurrency services would have to register and meet transparency and financial security requirements set by CONAD. The bill assigns supervisory responsibilities for financial and investment activities and requires controls against money laundering and terrorist financing in line with Financial Action Task Force (Grupo de Acción Financiera Internacional) recommendations. Providers would have to apply know your customer policies, report suspicious transactions to the Financial Analysis Unit (Unidad de Análisis Financiero) and undergo audits. The bill also provides for education, cooperation and digitalization strategies. Exchanges and providers would have to demonstrate minimum operating capital of $500,000 USD or its equivalent in liquid cryptoassets, undergo annual audits and segregate customer funds. Initial coin offerings and security token offerings would require registration, approval and a white paper; CONAD could suspend noncompliant offerings. Platforms would have to disclose risks, fees and complaint procedures, with digital arbitration provided for disputes. A fund financed by 0.5% of each transaction on regulated exchanges and annual company contributions would cover losses from bankruptcy or proven fraud. Further controls apply to transactions exceeding $5,000 USD monthly, alongside real time transaction monitoring.

The Government of Panama (Gobierno de Panamá) would promote blockchain for property records, tax payments, identity and official documents; the National Authority for Government Innovation would have six months to submit an implementation plan. The bill provides tax benefits of up to five years for certain companies, digital economic zones and a blockchain development fund. It subjects cryptoasset transactions to a special tax regime to be regulated by the Directorate General of Revenue. Commercial use of cryptocurrencies would be voluntary, without mandatory legal tender status, and financial institutions could convert them into dollars or balboas under banking supervision. The bill provides incentives for digital payments and a five year income tax exemption for blockchain startups meeting employment and government technology conditions. It sets capital gains tax rates of 0% for holdings of more than three years and 10% for sales before one year.

The designated authorities would have to prepare regulations, supervisory criteria, integration protocols and reports within six (6) months. Implementation would proceed through a first, second and third year. The bill also creates the Interinstitutional Committee for the Supervision of Digital Assets (Comité Interinstitucional para la Supervisión de Activos Digitales, CISAD) to coordinate and assess oversight. It requires an annual report to the National Assembly and the Executive Branch. Operating without a license would carry fines between $100,000 and $1,000,000 USD. Failure to comply with anti-money laundering and counter terrorist financing rules could lead to closure, asset blocking and fines of 10% of annual company revenue, alongside administrative and criminal penalties. The Executive Branch would issue implementing regulations within twelve months, and the proposed law would take effect 90 days after publication in the Official Gazette. Its provisions concern the named financial, tax and technology authorities, as well as cryptoasset providers, investors, consumers, technology companies, tourism, exports and digital services.