Assets, Bitcoin

Is Bitcoin Legal in Panama?

Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain.

Bitcoin is unique in that there are a finite number of them: 21 million.

Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services.

As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.

NOTE: WARNING: The legal status of Bitcoin in Panama is unclear. It is important to be aware that using, buying, selling, trading or holding Bitcoin may be subject to additional laws and regulations in Panama. It is strongly advised to research all applicable laws and regulations in Panama before engaging in any activities related to Bitcoin.

The legal status of bitcoin varies substantially from country to country and is still undefined or changing in many of them. While some countries have explicitly allowed their use and trade, others have banned or restricted it. Likewise, various government agencies, departments, and courts have classified bitcoins differently.

China Central Bank banned the handling of bitcoins by financial institutions in China during an extremely fast adoption period in early 2014.[42] In Russia, though cryptocurrencies are legal, it is illegal to actually purchase goods with any currency other than the Russian ruble.[43].

Panama has not expressly regulated bitcoins. However, the superintendency of the securities market has issued resolutions indicating that bitcoins may not be considered securities and therefore would not be subject to Panama’s securities lAWS.

In addition, the Panamanian tax authority has not issued any ruling on the tax treatment of bitcoins. Therefore, it is unclear whether bitcoins would be treated as currency, commodities, or something else under Panama’s lAWS.

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