- He partially vetoed the Bill citing that it did not address certain financial regulations
- The activities in concern include possible money laundering and crypto scamming schemes
- He insisted that the Bill should include additional Anti-Money laundering rules.
The President of Panama, Laurentino Cortizo, has in an unexpected move turned down the crypto Bill.
He partially vetoed the Bill citing that it did not address certain financial regulations as stipulated by the law.
The head of state said that the Bill required more detailed work done regarding fraudulent crypto activities.
The activities in concern include possible money laundering schemes and crypto scamming activities in the crypto markets.
What about the Bill?
Recently, the crypto market has been faced with a number of fraudulent cases across the world. In a presidential address last month, Laurentino warned that he would not sign the bill if it failed to address these cases.
He insisted that the Bill should include additional Anti-Money laundering rules. This comes after the National Assembly passed the crypto Bill in April 2022.
According to local reports in the Country, the President requested that Crypto rules should follow FATF regulations.
Although the President previously described the crypto Bill as an innovative law, his recent move raises more questions than answers.
The Crypto Bill was first introduced in September 2021 by Congressman Gabriel Silva.
On his Twitter page, Silva proposed that the bill would create jobs, attract investors and encourage tech innovations in Panama.
The Congressman also stated that Congress will study the partially vetoed Bill and make amendments. If the Bill succeeds, it will make Panama the second country in Central America to pull such a legislative move.
Panama may agree on the use of crypto
Neighboring countries like El Salvador have been in the trenches after adopting Bitcoin as legal tender. Such misfortunes in the crypto world give other countries the motive to formulate laws that protect citizens against crypto malfunctions.
According to the crypto Bill, the process of Panama may freely agree on the use of crypto including Bitcoin and Ethereum. These crypto-assets are set to be an alternative payment option without limitation.
The Vetoed Bill also discusses the issuance of digital assets and regulation of tokenized precious metals and tangible assets. The innovation authority in government will be tasked with the digitization of identity.
This will entail the use of Blockchain or decentralized ledger technology. The updated version of the crypto Bill will encompass a few additional details of the legislation. These are; the introduction of Blockchain technology to boost transparency and digitization of records.
