Panama's Supreme Court Reviews Crypto Bill

The Supreme Court's Role in Crypto Legislation

The Supreme Court of Panama is poised to make a significant decision regarding the future of cryptocurrency in the nation. The court's ruling will determine if the previously passed crypto bill, known as Bill No. 697, will be approved or rendered unenforceable. This pivotal decision follows President Laurentino Cortizo's submission of the bill for review, citing constitutional concerns.

President's Concerns and Partial Veto

President Cortizo has been vocal about his opposition to certain elements of the bill. He has highlighted that some provisions, specifically articles 34 and 36, infringe upon the principle of separation of powers and propose the creation of new government structures. Due to these issues, President Cortizo issued a partial veto in June, signaling the need for further refinement of the bill.

Implications for Panama's Crypto Industry

Should the Supreme Court approve the bill, it would allow Panamanians to use cryptocurrencies for various commercial and civil transactions. This move could position Panama as a leader in the adoption of digital currencies, aligning with global trends towards financial innovation.

Legislative History and Process

The crypto bill was initially approved by Panama's National Assembly on October 28th. It was then forwarded to the President's office, where constitutional concerns were raised. The ongoing review by the Supreme Court will focus on addressing these concerns and ensuring that the bill complies with Panama's legal framework.

Future Prospects

The decision by the Supreme Court will have far-reaching implications for Panama's financial landscape and its integration into the global cryptocurrency market. The outcome will either pave the way for greater freedom in digital transactions or necessitate further legislative adjustments to align with constitutional standards.