Panama's Crypto Bill Faces a Setback as the President Calls for Stricter AML Regulations

The President's Opinion

Cortizo stated that he requires assurances that the bill complies with international anti-money laundering standards. The President added, when addressing the Bloomberg New Economy Gateway Latin America conference in Panama City,

"If I'm going to answer you right now with the information I have, which is not enough, I will not sign that law. I have to be careful if the law has clauses related to money laundering activities. Anti-money laundering activities are very important to us."

In June 2019, the Financial Action Task Force (FATF), a global intergovernmental watchdog, put Panama on its Grey list. Following this, the offshore hotspot's financial officials pledged to take several steps to tighten its anti-money laundering (AML) and counter-terrorist financing (CFT) regimes. While Cortizo thinks the crypto law is "interesting," he says he's waiting for worldwide crypto regulation.

"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."

About the Bill 

The Latin American country's lawmakers have approved a bill that will govern the usage of Bitcoin and eight other cryptocurrencies and taxation and private transactions. Citizens, banks, and legal companies in Panama will be able to utilize Bitcoin, Ethereum, XRP, Litecoin, XDC Network, Elrond, Stellar, IOTA, and Algorand as a means of payment in both civil and commercial capacities "without limitation," according to a copy supplied by Gabriel Silva, a Panamanian politician. Panama's measure included provisions similar to El Salvador's Bitcoin Law. It would also allow government departments to shift public records to blockchain technology, which many believe will turn the country into a Latin American digital centre.