President Panama’s Laurentino Cortizo used his veto to object to a variety of provisions in the approved cryptocurrency law. These observations by the president do not impact the entire law, but only a few of its articles. These articles must be reviewed, taking into account Cortizo’s comments.
Cortizo Vetoes Crypto Law in Panama
The president of Panama, Laurentino Cortizo vetoed the newly approved cryptocurrency law and sent it back to Panama’s National Assembly for further discussion. Cortizo had second thoughts about legality for some articles, but not all of the bill’s approved. This was only a partial veto.
Gabriel Silva was one of the supporters of the law and made the announcement via social media. Silva condemned Cortizo’s decisions. statingIt was
This is a missed opportunity to attract investments, create jobs and integrate technology and innovation into the public sector. This country needs more financial inclusion and opportunities.
Silva also explained he was studying the needed changes for the bill and that it would be going now to two committees of the National Assembly — the Government Commission and the Trade Commission. It will then need to be discussed again twice. Cortizo did not mention which parts of the law he vetoed.
This so-called “crypto law” was created from the amalgamation of two separate cryptocurrency law projects. It defined a blockchain-based ID and allowed for the use blockchain technology to increase transparency in public spending.
Expression of Concerns
The veto of a part of the law by Cortizo’s team was not a total surprise. Panama’s president had raised concerns over the law’s scope and certain definitions. Cortizo said the following in May when Cortizo was asked questions about the approval for the crypto law:
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.
Cortizo claimed that there would be no sanction for the law if money laundering concerns were not resolved. The country has a poor relationship with Financial Action Task Force. They have included it on their gray list alongside countries like Turkey, Yemen, the Philippines and Yemen. He also said that the bill was a good and innovative law.
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