Panama's Crypto Law: No Legal Tender, but Digital Assets Exempt From Capital Gains Tax

Panamanian lawmaker Gabriel Silva outlined key components of the country's legislative bill regulating cryptocurrencies, explaining that it permits digital assets for payments without declaring them legal tender. Because Panama adheres to a territorial taxation system, the legislation treats crypto assets as foreign-source income, exempting them from capital gains taxation. Proponents highlighted that the measure would provide legal certainty for digital asset companies seeking to incorporate in Panama, reinforcing its ambition to serve as a regional technology and crypto hub. The bill passed the National Assembly by a unanimous vote before heading to the executive branch for presidential review.