President of Panama has previously praised the regulations as creative, his concerns about anti-money laundering provisions have forced the package back into cabinet consideration.
After Panama’s National Assembly passed the crypto bill in late April 2022, President Cortizo indicated in May that he would not sign it unless it contained extra anti-money laundering rules.
President Laurentino Cortizo of Panama has partially vetoed Bill No. 697, sometimes known as the “crypto bill,” claiming that it needs additional work to conform to Panama’s financial standards.
The President noted that it is “imperative” that cryptocurrency laws adapt to new norms established by the Financial Action Task Force (FATF) establishing “fiscal transparency and prevention of money laundering,” according to a copy of the 32-page veto acquired by local media source La Prenda.
President Cortizo has previously referred to the bill as a “innovation law” and expressed support for certain sections of it.
On June 16, Congressman Gabriel Silva, who helped introduce the law in September 2021, tweeted that the veto was “a missed opportunity to produce jobs, attract investment, and embrace technology and creativity in the public sector,” according to a translation.
“The country deserves more chances and financial inclusion,” Silva remarked, adding that Congress will look into the veto and make changes before debating it.
If the measure is signed, Panama will become the second Central American country to control cryptocurrency spending. El Salvador, a neighbouring country, is noteworthy for being the first to recognise Bitcoin (BTC) as legal cash.