Panama National Assembly on Thursday approved legislation to regulate the use and commercialization of crypto assets in the Central American country known as a hub of overseas financial services.

The bill allows the private and public use of crypto assets as well as the payment of taxes with cryptocurrencies. Experts pointed out that it could raise Panama’s reputation as a place lacking financial transparency.

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The legislation is broader in scope compared to measures passed by El Salvadore, which last year declared Bitcoin as legal tender, said independent lawmaker and promoter of the bill Gabriel Silva.

“We’re seeing the emergence of many different types of crypto assets like works of art,” he said. “That’s why we didn’t want to limit ourselves only to cryptocurrencies.”

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“This bill seeks to convert Panama into a technology innovation hub in Latin America. This is a step forward that seeks to mobilize the economy and create jobs,” said Silva.

The new bill regulates the trading and use of crypto assets, issuance of digital securities, new payment systems and the tokenization of precious metals. Tokenization is when rights to an asset are converted into digital formats.

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Under this legislation, crypto-assets can be used as means of payment for any civil or commercial operation not prohibited by law in the country.

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The bill aims to provide regulatory clarity for the optional usage of cryptocurrencies as payment in Panama. In addition, the goal is to incentivize foreign companies to open offices in the Central American country and also to encourage local entrepreneurship in the cryptocurrency services business. Panama’s territorial tax system will also apply to Bitcoin, so there will be no capital gains on investments in the peer-to-peer currency.