Panama’s economy is recognised as one of Latin America’s most stable. This is most likely one of the reasons the country’s President wants to adopt a crypto law that adheres to all economic and anti-money laundering criteria in order to retain the status quo.
On June 16, President Laurentino Cortizo of Panama partly vetoed the crypto bill, claiming that it needs additional development to become more suitable with Panama’s financial rules established by the Financial Action Task Force (FATF).
Gabriel Silva is the congressman, and he also assisted in the bill’s introduction in September 2021. Parliamentarian Gabriel Silva tweeted on June 16 confirmed the news and furthermore stated that the denial was a “wasted chance in the generation of employment, encouraging investment, and embracing technology and creativity in the public sector.”
El Presidente acaba de vetar parcialmente el proyecto de Ley de Crypto
Una oportunidad perdida para generar empleos, atrae inversión e incorporar tecnología e innovación en el sector público
El país merece más oportunidades y también inclusión financiera (1/2)
— Gabriel Silva (@gabrielsilva8_7) June 16, 2022
Crypto Bill should adhere to new norms: Panama President
Local media source La Prenda received a 32-page veto copy. According to the copy, the Panama President explained that it is “extremely important” that crypto bills correspond to new Financial Action Task Force (FATF) criteria ensuring “fiscal transparency and money laundering prevention.”
Previously, President Laurentino Cortizo referred to the plan as an “innovation act” and showed support for certain aspects of it. The bill states that potential illegal applications of crypto must be addressed.
The National Assembly of Panama passed the crypto bill in April 2022. In May, the bill was sent to the President of Panama, where he warned that he would not approve it until potential anti laundering (AML) provisions were included.
Furthermore, Congress will analyse the veto in order to adopt changes that will then be discussed for adoption. As Silva remarked, “The nation needs greater chances and financial inclusion.”
Panama to become second country to control crypto
If the bill passes, Panama will become the second country in Central America to regulate crypto spending. El Salvador, a neighbouring country, was notably the first nation to declare Bitcoin as legal tender.
With the exception of the nation of El Salvador, the Proposal of Panama also covers cryptocurrency apart from Bitcoin and would not compel local businesses to use virtual currencies.
As per the bill, Panamanian citizens “shall freely engage in digital assets, including without restriction in Bitcoin and Ethereum,” as a substitute transaction for “any civil or business transaction.”
The act will also oversee the issue of digital money and control the tokenization of goods such as valuable metals. The development body of the government would also investigate identification digitization via blockchain or distributed ledger technologies.
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