Panama’s parliament has enacted legislation governing cryptocurrency, which is now awaiting the signature of the country’s President. Several areas of the cryptocurrency industry are covered in this regulation, including payment methods and tokenization. More nations are starting to approve crypto-related legislation, and now the focus is shifting to decentralized financial (DeFi)infrastructure. According to the nation’s leaders, the legislation would foster innovation while also stimulating the economy.
Regulation For Cryptocurrency
On the 28th of April, the country’s legislative arm made the report on its official Twitter page. The country’s National Assembly has enacted a bill that would see cryptocurrencies regulated. In particular, the legislation controls the marketing and use of cryptos and also the tokenization of metals, payment systems, and other aspects of the financial system.
The legislation is fairly comprehensive, and the regulation encompasses a wide range of aspects of the cryptocurrency sector. It has not yet been signed by Nito Cortizo, the country’s PresidentPresident, but that is likely to happen shortly afterward.
Officials seem to be concentrating on building an atmosphere conducive to creativity. Some predict that this could help the region become a regional center for technology and innovation in Latin America. Also, they anticipate that it will benefit people by assisting in creating employment and promoting economic development.
Panama has become the latest country to enact legislation to regulate digital currencies, adding to a growing number of jurisdictions. Developing nations are very optimistic about allowing crypto since they stand to earn the most. However, the countries with more significant economies are significantly more conservative. Although the US has just recently begun measures to regulate cryptocurrency, China has openly outlawed it. India believes that global collaboration is essential to avoid unlawful activities in the cryptocurrency market.
Lawmakers Shift Attention Towards The DeFi Sector
It has taken a while for the cryptocurrency industry to be regulated. Now, lawmakers and government officials are focusing their efforts on addressing these issues. According to a study produced by the IMF, the DeFi market presents hazards to the financial sector and needs regulation. Europe’s law enforcement agencies also keep an eye out for unhosted wallets.
Due to the decentralized nature of the DeFi market, it isn’t easy to control. Lawmakers are looking out for ways to remove the anonymity that the sector has enjoyed over the years. Congress wants to know the names of crypto wallets that operate in the DeFi sector, and they are exerting strain on the firms who work in this arena to provide this information. It is not sure whether or not this will be successful.