Monday, December 6

Suspicious token sneaks into a bill to regulate bitcoin in Panama

“In Panama we are warning about a potential risk of scam through the so-called 7even Utility Token (7UT), included in one of the bills that are under debate in the National Assembly to regulate cryptocurrencies.” This was commented to CriptoNoticias by Rodrigo Icaza, executive director of the Digital Chamber and Blockchain of the Central American country.

The proposed law for the regulation of bitcoin (BTC) and other cryptocurrencies presented in August before the National Assembly by the deputy Cenobia Vargas, recommends the use, as a means of payment, of 7UT in stores in Panama.

We understand that Deputy Cenobia Vargas is unaware of the issue, but we know that through her team of advisers there was an approach by the promoters of this 7even Utility Token and that is why she would have decided to include it in her proposal. However, we have been researching and found that the main promoters of this token are former promoters of OneCoin and other attraction and investment schemes, such as AirbitClub and others.

Rodrigo Icaza, executive director of the Digital Chamber and Blockchain of Panama.

Onecoin was a cryptocurrency that never existed promoted by the now-defunct Ruja Ignatova, better known as the crypto queen. Since 2014 the alleged asset was used to convince millions of people with the promise that it was capable of competing with Bitcoin and even surpassing it. With this, he got to hook investors from 175 countries who could not recover their funds.

Deputy Cenobia Vargas describes in her bill the reasons why you consider it important that the 7UT token should be regulated and authorized.

This token has the particularity that an already created usability ecosystem (wallet and exchange) already has that allows the validation of users through KYC (know your client), the sending of P2P remittances, added to the incorporation of businesses for that can receive payments with multiple cryptocurrencies and tokens and convert these into fiat money (USD). A significant number of people in the Republic of Panama already own this token, for which we consider that its use should be regulated and authorized.

Bill 101 presented by Deputy Cenobia Vargas.

In any case, in your website, the 7UT project is described as a token created to promote care for the environment. Nevertheless, it is not clear what its value is, nor does it detail where it is accepted as an asset or what can be bought with it.

Nor is 7UT listed on the main crypto asset price trackers such as Coinmarketcap or Coingecko. While a look via Etherscan shows that has less than 700 users.

In the “Usability” section of its terms and conditions, it reads that “the committed user will freely have their tokens called 7eventoken, which will be interchangeable in future electronic platforms strategically associated with the Grupo Zeven ecosystem.”

“We were able to verify that these tokens are sold through packages and referral programs,” explained Icaza.

On the other hand, several weeks ago, the user bogardrangel left the following comment on Instagram: “There are people waiting for months for the money to migrate to HYT and for the coin to come to the market … less promotion and more results please.” Until now, CriptoNoticias continues to await a request for comments sent to its contact email.

A user comments on Instagram that he hopes 7UT will be released. Source: Instagram.

Apparently, the promoters of 7UT have made an alliance with those of a call mobile app HYT which is not yet available for use, as several users comment on the Play store. Also the token is linked to the alleged broker Onefx, whose data is not verifiable.

All these red flags that we have found will be presented next week to the Subcommittee on Trade and Economic Affairs of the National Assembly, which is in charge of analyzing the opinions and comments on the bills. In addition, we believe that it is necessary to unify criteria for the development of a single text of the law, since so far we have two proposals under discussion.

Rodrigo Icaza, executive director of the Digital Chamber and Blockchain of Panama.

It is a regular priority bitcoin and other cryptocurrencies in Panama

That an alleged scam sneaks into the proposed laws to regulate bitcoin and other cryptocurrencies seems an irony, but in the eyes of Rodrigo Icaza only shows that it is necessary to speed up the pace so that the legislative procedures move forward and a definitive law emerges.

It is also necessary to educate more, especially since “we have identified that our prosecutors are lacking in knowledge to carry out investigation processes on cryptocurrency scams.” This because there are a certain number of complaints in this regard, but judicially, there are still no actions to deal with this type of financial crime, as the executive pointed out.

At the beginning of the legislative period, four bills for the regulation of cryptocurrencies were presented to the National Assembly of Panama. Nevertheless, currently only two of them have advanced to debate. While the other two bills are awaiting their review to advance to the first discussion.

For now, the proposal of Deputy Cenobia Vargas and that of also Deputy Gabriel Silva are under debate, which in Article 8 of the draft contemplates the use of cryptocurrencies, specifically bitcoin (BTC) and ether (ETH), as a means of payment.