“If the law contains clauses related money laundering activities — Anti Money Laundering activities — it’s very important to us,” stated Panama President Laurentino Cortizo.
President of Panama, Laurentino Cortizo has stated that he will not sign off on a Crypto Bill recently approved by the National Assembly.
Cortizo spoke at the Bloomberg New Economy Gateway Latin America conference Wednesday. He stated that the Panama legislature recently passed a bill. However, he said that it must pass legal checks before it can reach his desk. However, he added that he needs more information before approving the bill for signing into law. The president described the legislation as “innovative” and “good,” but he questioned the legality of some of its aspects.
Cortizo stated, “I won’t sign that law right now.” “If the law contains clauses related money laundering activities — Anti Money Laundering activities — then that’s very important to us.”
After the third debate, Panama’s “Crypto law” was passed by the National Assembly. The bill was intended to regulate “the trading and usage of crypto assets and the issuance digital value, tokenization of precious metals, and other assets, as well as payment systems and other provisions.”
Contrary to El Salvador’s Bitcoin Law which required local businesses to accept Bitcoin the Panama Crypto Law would allow residents and businesses to use and accept cryptocurrency. Many businesses will not require a license to accept cryptocurrency, according to the early draft.
Gabriel Silva, a pro-crypto lawmaker, has suggested passage to the Crypto Law. This would foster financial inclusion in Panama as well as create new employment opportunities. Ernesto Bazan, an economist, has called President Cortizo to veto it. He claimed that the lack of clear regulations in Panama was unlikely to encourage trust in cryptocurrency, which could impact the stability of the local economy.
Bazan stated that “it is vital to have competent professionals and supervisory capacity and sufficiency in such a new and specialized field.” “Weak regulation will open up a window for greater fraud, cyberattacks, and criminal activities that would imply loss of confidence in both the country and its International Banking Center […]. We wait to see if the law is vetoed and that an extensive analysis of the potential risks associated with this regulation be done. To the benefit of the country.”
Related: Ukraine’s President Signs Law Establishing Cryptocurrency Regulation Framework
introduced the Panama Crypto Law in September 2021 to the National Assembly. This was the same day El Salvador began officially recognizing Bitcoin ( BTC ) as legal tender. The bill was approved by the National Assembly on April 28. It is currently awaiting President Cortizo’s approval or veto.
