The president of Panama has vetoed legislation that would govern bitcoin, DAOs, and blockchain-related firms. He requested tighter AML regulations.
Panama’s economy is regarded as one of the most stable in Latin America. This is most likely one of the reasons its President wishes to establish a crypto law that complies with all economic and anti-money laundering requirements in order to keep the country’s status quo.
Panamanian congressman Gabriel Silva revealed on his official Twitter account on June 16 that President Laurentino Cortizo had vetoed the “Crypto Bill” due to concerns that it would not comply with specified legal restrictions.
According to Silva, legislators are already reviewing the veto in order to make the necessary changes so that the new cryptocurrency law is adopted as quickly as possible, creating new jobs and drawing new investments to the country.
Certain regulations must be changed to the framework that now governs the country’s financial system, according to the document supplied by President Cortizo, in which he partially vetoes the bill.
Cortizo also stated that the law must adhere to the latest FATF recommendations on fiscal transparency and money laundering prevention. When governments approve new financial legislation, they must meet two prerequisites.
For the time being, Congressman Silva and his staff will have to work hard on the necessary revisions because the President stated that the law was not “subject to sanction.” This suggests that Panama is not abandoning the initiative, but rather wants it to comply with worldwide AML standards.
Although the Panamanian National Assembly enacted the Crypto Law in late April, it still required the President of the Republic’s signature, which he had already indicated he would not do for months.
As a result, Congressman Silva stated on Twitter that Panama “deserves more opportunities and also financial inclusion.” He did, however, point out that for the time being, they should only discuss what President Cortizo vetoed, rather than redoing the entire package.
“We are studying the veto to make corrections, but we must keep the Law competitive… The discussion must now go to the Government Committee (to check on the unconstitutional) and to the Commerce Committee (to check on the inconvenient)…. Then 2nd and 3rd debate. Only the vetoed is discussed”.
As a result, while President Cortizo’s opinion at the time of signing the Law was still in contrast with Congressman Silva’s, he is not yet a self-proclaimed anti-crypto politician. The President may finish up signing the bill to make Panama into a new crypto HUB if it meets all of the anti-money laundering requirements.
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