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President of Panama Laurentino Cortizo has asserted that the recently approved cryptocurrency bill might be ineffective in curbing illegal crypto activities like money laundering. The President of the Central American nation made the comments at the Bloomberg New Economy Gateway Latin America conference in Panama City, where he noted:
“If I’m going to answer you right now with the information that I have, which is not enough, I will not sign that law.”
President Cortizo asserted that his government must be cautious in handling the bill if it contains clauses talking about money laundering activities, noting that it was a delicate matter in Panama.
The Panamanian constitution gives the president veto power over bills presented to the nation’s National Assembly, which is what Cortizo is acting on. However, the President noted that the bill was still under review by himself and his lawyers.
Panama Crypto Bill Aim to Introduce Blockchain Technology in Public Affairs
Cryptocurrency regulation in Panama became a thing in 2021 after Gabriel Silva of the National Assembly of Panama introduced a bill that aimed at modernizing Panama to give it a competitive edge against other nations. The bill proposed some changes to how the country handled crypto, blockchain, and virtual asset service providers.
The bill proposed the introduction of blockchain technology to enforce transparency in state spending and includes the migration of public records into the blockchain. The bill also proposed several other applications of blockchain in government and public affairs.
That said, Cortizo could veto a large part of the bill. He noted:
“It is an innovative law from what I have heard, it’s a good law. However, we do have a solid financial system here in Panama, and one of the things I’m waiting on is when you have a global regulation of crypto-assets.”
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