Panama’s “crypto law” came to a grinding halt today after President Laurentino Cortizo partially vetoed the bill.
According to local media, President Laurentino Cortizo took the move on the grounds that “the norms that regulate our financial system need to be adapted”. la prensa, The bill will now go back to the country’s National Assembly for debate.
In late April, the Central American tax haven looked like it would be the next Latin nation to encourage citizens to use bitcoin at the time of the country’s legislature. Approved A bill regulating the use of cryptocurrencies.
But President Cortizo last month Told He wanted guarantees that the law would comply with global anti-money laundering standards—hinting that he would not sign it immediately.
“I have to be very careful if there are clauses in the law relating to money laundering activities,” he said in an interview on May 19 bloomberg,
The bill wants Panama people to be able to buy everyday goods with cryptocurrencies. Digital assets such as bitcoin, ethereum, XRP, Litecoin and Stellar will be a legitimate form of payment “for any legal civil or commercial operation”, which includes the payment of taxes, fees and duties to the government.
It formally recognized DAOs—decentralized autonomous organizations—as legal entities and created the framework for the country to issue tokenized securities and commodities such as gold and silver through security token offerings (STOs).
Congressman Gabriel Silva, who helped draft the bill, wrote on Twitter today that the president’s move was “a lost opportunity to create jobs, attract investment, and incorporate technology and innovation into the public sector.”
“The country deserves more opportunities and financial inclusion,” he said.
If the bill is eventually signed, Panama will be the second Latin American country where citizens can spend their crypto. el salvador became The first country in the world to make bitcoin legal tender in 2021. Businesses in the country must accept bitcoin if they have the technical means to do so.
But Panama’s bill differs from El Salvador’s bitcoin law because crypto will not become legal tender there—but businesses will have the option of whether or not to accept the digital asset for payment.
Want to become a crypto expert? Get the best of Decrypt straight to your inbox.
Receive the biggest crypto news + weekly roundups and more!