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Latin America News The World

Is Panama Real or Fake Emerging Crypto Finance Hub?

Image (panama city): Jerzy Andrzej Kucia

Panama is a controversial country when it comes to finance and its regulations. Now, when cryptocurrencies and exchange platforms have made their way in the country, there are not many clear answers. What to think of a country known for its scandal with Panama papers?

Banks have very strict policies with everything that has to do with virtual currencies, even though the government has kept itself neutral with no regulations regarding the use of cryptocurrencies, DLT (distributed ledger technology) or Crypto Exchanges in Panama.

Nevertheless, some crypto companies have succeeded in making Panama their home. Bitcoin trading is one example of such activity. During the recent years Bitcoin transactions in this country, known for offshore finances, have increased noticeably. Bitcoin cash withdrawal devices, (ATM = Bitcoin ATM = BATM), exchange houses, restaurants, bars and even a taxi company accept payments in this virtual currency.

The Panama government fears another scandal as the so-called “Panama Papers” and this might be the reason why they remain neutral. The question is for how long will they remain so, without proper regulations for virtual currencies, as more and more places in Panama are starting to do trading with cryptocurrencies today.

Banks have been warning users about the risks on investing in cryptocurrencies, advising clients to educate themselves before trading in any virtual currency.

The fact that most of the people in Latin-American are not owners of even a credit card makes the use of virtual currencies easier, as credit cards are not necessary to make transactions. When googling around, it is easy to come across a number of portals offering help for those interested in exchanging crypto online regardless of the seeker’s locations or background.

Image (Panama canal): Monica Volpin

Conclusion

Panama City has become the venue for conferences related to the cryptocurrency and blockchain. Bitcoin is not forbidden and no government authority regulates its transactions.

Yet, as these are becoming more popular, even the government is doing its best in order to educate itself in this matter.

You must remember, however, that it is entirely at consumer’s own risk to use the crypto currency.

Disclaimer: Fyggex, does not give any guidance, advice or recommendations to neither invest or not in any available cryptocurrency directly or indirectly via any trading platform, exchange or provider.Our sole purpose is to make you aware of the related real or potential risks and opportunities so that you can make your own research prior to any financial decisions you may want to take. Past performance is no guarantee for future financial returns.

Sources:

https://www.panamaamerica.com.pa/economia/panama-se-prepara-para-el-uso-de-las-criptomonedas-1104330

https://www.bloomberg.com/news/articles/2020-01-09/largest-crypto-options-exchange-heads-for-panama-amid-scrutiny

https://prifinance.com/en/cryptocurrency-license/panama/

https://cointobuy.io/countries/panamahttps://

www.lexology.com/library/detail.aspx?g=933da6e9-2a4e-45b0-b3c9-5e4d74bd17a0

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