The draft law introduced by Congresswoman Cenobia Vargas includes using a token accused of being fraudulent. The bill by Senator Gabriel focuses on attracting investors and entrepreneurs who focus on the digital economy.
The Panamanian National Assembly has been the epicenter of debates about the regulation of Bitcoin (BTC) and other crypto assets since 2021.
There have been several discussions about two bills to legalize cryptocurrencies in the Central American country. The Trade and Economic Affairs Committee of Parliament recently resumed studies on combining those legislative proposals. They previously transferred the debate to the plenary session of the National Assembly for them to decide on the matter.
The Panamanian National Assembly reported that it created a subcommission to unify the criteria of Bills 696 and 697. The first regulates the use of cryptocurrencies and everything related to blockchain as payment methods in Panama. The second, Crypto Law, allows Panama to be compatible with the digital economy.
Both Draft Laws Have Different Approaches
Although both legislative proposals address the regulation of Bitcoin and other cryptocurrencies, their approaches are different.
Congresswoman Cenobia Vargas proposed Bill 696 in August 2021. In addition to Bitcoin, that law recommends regulating Ether (ETH) and the stablecoin Tether (USDT). They also include other types of tokens, such as non-fungible tokens (NFT) and the controversial 7even Utility Token (7UT).
Vargas said that she recommended using 7UT as a means of payment in businesses in Panama. However, that caused alarm in the Digital Camera and Blockchain of the Central American country. The organization warned of a potential risk of fraud with 7UT, as they identified its links with former promoters of the OneCoin Ponzi scheme.
As for Bill 697, independent congressman Gabriel Silva introduced it in September 2021. The 33-page document establishes that only Bitcoin and Ether cryptocurrencies should receive legal status.
However, the text also proposes to attract investors and entrepreneurs who focus on the digital economy.
Steps to Follow for the Approval or Rejection of the Draft Laws
Members of the Trade and Economic Affairs Committee are currently discussing two options. They must decide between combining both laws or choosing one of them for debate by the National Assembly.
Each parliamentarian defends their respective bills and answers questions from members of the Committee. After that, the latter will decide between combining the draft laws or choosing only one.
The Parliament would then develop a second discussion of the law, in which they must approve it to advance their vote. If the result is positive, its approval or rejection will be up to the president of Panama.
Bitcoin plays a relevant role in the economy, which leads regulators in countries like Panama to seek its legalization. Of course, the National Assembly of that country must follow some steps to make that possible.
The pioneering cryptocurrency is trading at around USD 35,978 and has accumulated a 7.2% loss in the last 24 hours. Its daily trading volume is above USD 33.88 billion, and its market capitalization is about USD 682.42 billion, according to CoinGecko.
By Alexander Salazar
