PANAMA Trends and Developments Contributed by: Kharla Aizpurua O., Roberto Vidal and Miguel Arias, Morgan & Morgan
Prediction Markets platforms allow users to fore - cast event outcomes and trade based on those predictions. Despite their potential, adoption remains limited due to low public awareness and a lack of specific regulatory frameworks for these platforms. Cybersecurity In response to the global rise in cyberattacks, there is a discernible trend towards enhancing risk understanding and implementing advanced measures, protocols, and technologies to miti - gate potential breaches. This trend is particularly pertinent for sectors handling confidential infor - mation, where the stakes are high and the need for robust cybersecurity measures is paramount. In Panama, there has been a concerted effort to address cybersecurity through legislative meas - ures. Although recent attempts to amend the criminal code to further regulate cybersecurity were not enacted into law, there is a clear inter - est from both the current administration and the public in establishing a more defined framework for addressing cybersecurity breaches. Panama has recognised the importance of a comprehensive regulatory framework to safe - guard against cyber threats. Key legislative measures include: • Law No 81 of 2019 focuses on protecting personal data and aligning Panama’s data protection policies with international stand - ards, such as the European Union’s General Data Protection Regulation (GDPR); • Law No 51 of 2019 establishes a regula - tory framework for electronic commerce and electronic signatures, ensuring secure online transactions and boosting consumer con - fidence by protecting personal data shared during electronic exchanges; and7
• National Cybersecurity Strategy 2021- 2024, coordinated by the National Author - ity for Government Innovation (AIG), aims to enhance the security and resilience of Panama’s digital infrastructure. It emphasises protecting privacy, deterring cybercriminal behaviour, and fostering a national culture of cybersecurity. Outlook for the Future A new administration took office in Panama in July 2024. With renewed political capital, efforts are expected to pass regulations aimed at mod - ernising the financial sector. In April 2025, the Panama Convention Center will host the Panama Blockchain Week (PBW). With this event, Panama is attempting to posi - tion itself as the “Blockchain Financial Hub” of Latin America. Notably, the President of Panama will be one of the speakers at the event, which serves as an indicator of the general awareness and willingness to implement fintech-friendly regulations during his term. Given Panama’s historic role as a regional finan - cial hub, its status as a dollarised economy, and its territorial tax system, with an adequate legal framework, the country is primed to establish itself as a centre for financial technology. Conclusions In summary, Panama’s fintech sector, while still in its nascent stages compared to regional lead - ers, holds significant potential due to its strate - gic location, robust banking infrastructure, and growing demand for efficient financial solutions. The current regulatory landscape presents both challenges and opportunities, with the absence of comprehensive regulations for fintech ser - vices and cryptocurrencies creating uncertainty and offering a unique space for innovation.
616 CHAMBERS.COM
Powered by FlippingBook