Panama considered a comprehensive crypto bill (2022) that would have regulated stablecoins, defined VASPs, and recognized crypto for payments. However, President Laurentino Cortizo vetoed the bill in June 2022, citing AML/FATF compliance concerns. As a result, stablecoins remain unregulated but tolerated, and they are widely used in payments, commerce, and remittances given Panama's dollarized economy. No replacement bill has yet been enacted.
Applicable Laws:
Crypto Bill (Proyecto de Ley 697) - https://www.loc.gov/item/global-legal-monitor/2022-05-10/panama-national-assembly-passes-bill-regulating-cryptocurrency
Presidential Veto of Bill 697 - https://digitalpolicyalert.org/event/5694-partial-veto-of-crypto-bill-by-the-panamanian-president
