Crypto bill won't come into law at this moment says president Laurentino Cortizo

By: Michael Wilson

May 23, 2022 6:54 AM

The president of panama has confirmed that he wont be signing the recent crypto bill approved by the country's National Assembly if the law clauses related to Anti-Money Laundering activities is not included.

Laurentino Cortizo, the president of Panama, said on Wednesday at the Bloomberg New Economy Gateway Latin America. he won’t sign off on a crypto bill recently approved by the country’s National Assembly as he believes the bill should go through legal checks before getting to his table.

Describing the legislation as an “innovative law” and a “good law,” the president said he approved of certain aspects of the bill but hinted at possible illicit uses of cryptocurrencies that will need to be addressed. he added

“I will not be signing the law at this time,” said president Cortizo. “If the law has clauses related to money laundering activities and Anti-Money Laundering activities that’s very important for us are not inclusive.”

The Panama’s “Crypto Law” which was passed in the National Assembly on April 28, after the third debate. According to the legislative body, the bill aimed at regulating trading and use of crypto assets, the issuance of digital value, the tokenization of precious metals and other assets, payment systems.

The Panama Crypto Law, if passed, would likely give residents and businesses the avenue to start accepting and using cryptocurrency. with businesses not requiring a special license before they can start accepting crypto.

lawmaker Gabriel Silva opined that the passage of the Crypto Law would help foster financial inclusion in Panama and create additional opportunities for employment within the country. Nonetheless, economist Ernesto Bazán wants more scrutiny of the bill and has called for President Cortizo to veto the bill, claiming the lack of clear regulations in the country was unlikely to inspire trust in cryptocurrencies, risking the financial stability of banks and the local economy.

“It is essential the we have competent professionals, a supervisory capacity and sufficiency, even more so in such an important and high value subject,” said economist Bazán. " a weak regulation would give access for greater fraud, cyberattacks and criminal activities that would imply a loss of confidence in the country and its International Banking system. We await the dismiss of the law and that a comprehensive analysis of the risks that this regulation implies be carried out. For the good of the panama.”