The Panamanian Supreme Court is now in a position to rule on the fate of the country’s cryptocurrency business, marking a new milestone in the country’s ongoing crypto law.
On January 26, Panamanian President Laurentino Cortizo asked the high court to examine the cryptocurrency law passed last year. He said that the so-called “crypto bill” goes against the essential values of the Constitution and is unconstitutional.
Whether the Supreme Court rules that Bill No. 697 is unconstitutional or upholds it with amendments is currently in question.
The Presidency deemed articles 34 and 36 of the bill unconstitutional since they breached the state’s separation of powers. Furthermore, the president’s office sets up administrative structures in the government.
The bill was introduced in September 2021 to make the country “compliant with the internet, crypto assets, blockchain, and digital economy.” The bill was passed when it was released from the Economic Affairs Committee on April 21.
The law tries to keep track of how precious metals are turned into tokens and how digital currency is given out. The government’s innovation authority may also consider using blockchain or distributed ledger technology to set up a system for verifying digital identities.
