Laurentino Cortizo (Panama’s president) has said that he would not sign the current version of the National Assembly of Panama’s cryptocurrency bill. Cortizo said that one of the main issues with the bill was its stance on money laundering and crypto. Cortizo could approve certain parts of the bill, while opposing others.
Panama’s President Considers Crypto Bill Veto
The president of Panama, Laurentino Cortizo expressed his views on the recently passed cryptocurrency bill. He also suggested that it may be too loose in terms of dealing with criminal activities, such as money laundering, within the industry. Cortizo made these remarks at the Bloomberg New Economy Gateway Latin America conference, Panama City.
If I’m going to answer you right now with the information that I have, which is not enough, I will not sign that law.
Furthermore, Cortizo explained that he and his government would have to be “very careful” if the crypto bill presented has clauses dealing with money laundering activities, remarking that these are very important to Panama.
Panama gives the president the power to veto bills that are presented to the National Assembly. Cortizo could make use of this to stop the bill from being passed in its current form. Cortizo stated that he was still studying the law and is waiting for his legal team to take a final decision.
Panama’s Crypto Law
The Panamanian government began its journey to cryptocurrency regulation last year when Gabriel Silva (a national representative) introduced a bill that included a proposal to modernize Panama and make it more comparable with countries around the region. Although the bill was subject to some revisions during discussion, it establishes key concepts regarding crypto and blockchain as well as virtual asset service providers.
The bill’s approved version also introduces the use of blockchain to increase transparency in state spending. This is similar to other Latam projects. It would also include the gradual migration of public records onto the blockchain.
A second important aspect of the bill’s proposal is digitalization of identity processes. Issued IDs can be posted on a publicly accessible blockchain. Cortizo could adopt some articles and make them law. He may also veto parts of other sections of the bill. To conclude, Cortizo stated:
It is an innovative law from what I have heard, it’s a good law. However, we do have a solid financial system here in Panama and one of the things I’m waiting on is when you have a global regulation of crypto-assets.
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