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PA (PA) · Module W2 · Derived Confidence: Probable

PA: Stablecoins & Digital Money

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Panama has no comprehensive crypto/stablecoin law in force. A 2021-22 crypto bill (Bill 697) was partially vetoed by President Cortizo in June 2022 over AML concerns and was struck down as unconstitutional by the Supreme Court in July 2023, leaving digital assets in a legal grey area; a renewed Bill No. 247 (2025) is pending before the National Assembly.

Standing sub-brief · as of 4 July 2026212 words · last cycle 2026-07-04

Stablecoins & Digital Money

Panama's most consequential crypto-regulatory event remains the 2022-23 nullification of Bill No. 697: partially vetoed by President Cortizo in June 2022 on anti-money-laundering grounds while Panama sat on the FATF grey list, then declared entirely unconstitutional by the Supreme Court in July 2023, resetting the country's legislative effort at comprehensive crypto regulation to zero. The Supreme Court's ruling sided fully with the President's veto objections, leaving no comprehensive crypto framework in force and establishing a legal precedent that now weighs on any future legislative attempt, including the pending Bill No. 247.

A successor bill, No. 247, introduced in 2025, proposes licensing of virtual-asset service providers registered with the Financial Analysis Unit (UAF), mandates FATF-aligned KYC/AML compliance, and creates a National Council for Digital Assets. Its status remains pending before the National Assembly, with no confirmed forward enactment date sourced this cycle; the bill's fate should be re-verified next cycle.

Outlook

Litigation precedent now functions as an implicit filter on Panama's crypto/stablecoin ambitions: any future VASP or stablecoin framework must clear the constitutional bar the Supreme Court set in 2023. Bill 247's progression — or continued stasis — is the key marker to track next cycle; illicit-finance-use dimensions of any eventual VASP regime fall to Sentinel (sentinel.gi) rather than WPM.

no periodic updates on record for this sub-brief

Sources and findings (4 unique sources · R-3/R-4)
  1. [W2-E1] T3 Derived: Probable draft_no_legal_forcehttps://www.coindesk.com/policy/2022/06/17/panamanian-president-partially-vetoes-crypto-regulation-legislation re-verified

    President Cortizo's partial veto of Bill 697 came in the context of Panama's presence on the FATF gray list, citing the need to conform new crypto regulation with FATF recommendations and the country's monetary and financial framework.

  2. [W2-E2] T3 Derived: Probable draft_no_legal_forcehttps://sb-sb.com/services/crypto/crypto-license/latam/panama/ re-verified

    In July 2023, Panama's Supreme Court declared the entire proposed crypto law (Bill 697) unconstitutional, siding with the President's objections, resetting the country's crypto regulatory efforts and leaving crypto business permitted but ungoverned by comprehensive legislation.

  3. [W2-E3] T3 Derived: Probable draft_no_legal_forcehttps://www.forbes.com/sites/digital-assets/2025/07/31/panama-crypto-law-aims-to-make-the-country-a-bitcoin-hub/ re-verified

    Bill No. 247, introduced in 2025 by Alternate Deputy Gabriel Silva Solís, requires licensing of Virtual Asset Service Providers registered with the Financial Analysis Unit and mandates FATF-aligned KYC/AML compliance, alongside creation of a National Council for Digital Assets.

  4. [W2-E4] T3 Derived: Probable in_forcehttps://www.lightspark.com/knowledge/is-crypto-legal-in-panama re-verified

    Financial regulators, including the Superintendence of Banks and the Superintendence of the Securities Market, have issued non-binding statements clarifying that digital assets fall outside their direct authority, leaving cryptocurrency in a legal grey area that is not illegal but lacks comprehensive regulation.