Panama is considered one of the most stable economies in Latin America. This is probably one of the reasons why its president wants to pass a crypto law that complies with all economic and anti-money-laundering regulations in order to maintain the status quo of the country.
On June 16, Panamanian Congressman Gabriel Silva announced on his official Twitter account that President Laurentino Cortizo had vetoed the “crypto bill” for fear that it would not comply with specific legal regulations.
However, according to Silva, lawmakers are already studying the veto to make appropriate reforms so that the new cryptocurrency law can be approved as quickly as possible, creating new jobs and attracting new investments into the country. Can you
Panama’s crypto bill needs some changes
According to a document sent by President Cortizo in which he partially vetoed the bill, some of the laws should be compatible with the framework that currently governs the country’s financial system.
Cortizo also indicated that the bill should comply with the FATF’s new recommendations on financial transparency and the prevention of money laundering. Two mandatory conditions for governments when approving new financial laws.
For now, Congressman Silva and his team will have to work hard on appropriate amendments after the president indicated that the bill was not “under approval.” This means that Panama is not closing the doors to the project, but wants it to be compliant with international AML standards.
Panama Still Doesn’t Shut the Doors to Cryptocurrencies
Although Panama’s National Assembly passed crypto legislation in late April, it still required the signature of the republic’s president, and was already indicating it was not going for months.
That is why Congressman Silva said on his Twitter account that Panama “deserves more opportunities and financial inclusion as well.” However, he pointed out that for now, they should only discuss what President Cortizo vetoed without needing to redo the entire bill.
“We are studying the veto to make reforms, but we must keep the law competitive… The discussion should now go to the government committee (to check on the unconstitutional) and the commerce committee (to check on the unconstitutional) …. then the second and third debates. Only the veto is discussed”.
So, although President Cortizo’s position at the time of signing the law still conflicts with Congressman Silva, he is not yet an anti-crypto politician. The president can approve a bill to turn Panama into a new crypto hub, if the president complies with all the conditions related to anti-money laundering activities.
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