Panamanian venture capitalists see it necessary to regulate cryptocurrencies by aligning themselves with the FATF.
“Panama has failed to interpret the reality of cryptocurrencies,” say investors.
Panama is on the verge of a transformation in its financial market with the possible regulation of cryptocurrencies and the tokenization of assets, according to specialist Alfredo Muñoz.
In the discussion “Approach to the Regulation of Digital Assets in Financial Markets”, held this week, Muñoz stood out that regulation promises to revolutionize financial asset management.
“The regulation of digital assets in the Panamanian financial market is on the horizon,” he stated, indicating that this measure seeks to take advantage of the technology inherent to Bitcoin to improve the efficiency and speed of transactions.
Muñoz explained that the asset tokenization allows for near-instant settlementswhich is a jump from the days that traditional methods usually require.
“The implementation of distributed networks not only optimizes the speed of settlements, but also allows investors to exercise all their rights in a scheduled manner,” he indicated.
In his opinion, the benefits of this regulation are clear: greater supervision, efficiencies for investors and democratized access to the market.
“Tokenization also generates greater pockets of liquidity by automating settlements, allowing investments to be customized according to the characteristics of each user,” highlighted Muñoz.
With this rising trend, Panama could position itself to lead financial innovation in the regionsays Muñoz. “Panama has always been advanced in the financial market; It is time to give a boost to the regulations to recognize and test this technology,” he indicated.
The need to regulate, according to the FATF
In opinions similar to those of Muñoz, Sergi Lucas, president of the Panamanian Capital Markets Association (Apamec), stressed the urgency of regulating digital assets, aligning with the recommendations of the Financial Action Task Force (FATF).
“We are going to have to do it, I hope Panama makes the determination to regulate it with the aim of taking advantage of it and doing business,” said Lucas, pointing out that Panama could be missing opportunities by not adequately interpreting the reality of cryptocurrencies while other nations advance.
Currently, Panama is in regulatory limbo since former President Laurentino Cortizo vetoed the Crypto Law in 2023 that sought to regulate the sector. The Supreme Court of Justice of Panama will have the last word, although so far there has been no news.
Even with this scenario of regulatory uncertainty, Panama is one of the countries most prepared to adopt assets like bitcoin, according to a survey carried out at the end of 2023 by the Forex company Suggest, as reported by CriptoNoticias.
Furthermore, Panama is not only a candidate for the adoption of cryptocurrencies, but also has financial institutions that have already begun to offer products and services with bitcoin. This is the case of the TowerBank bank, which has its own platform to operate with these assets. The above reinforces Panama’s position as fertile ground for cryptocurrency-based financial innovation.
