Laurentino Cortizo, President of Panama, has said that he will not sign the crypto law, approved by the National Assembly last month, if it does not guarantee strict compliance with AML regulations, against money laundering.
The crypto bill promoted by Panamanian deputy Gabriel Silva, to legalize cryptocurrencies in the country, has met with rejection from the current president of Panama, Laurentino Cortizo.
Amid one of the worst crypto market crashes and reports of increasing illicit activities in DeFi protocols, President Cortizo noted that Panama's crypto bill, which he described as positive and innovative for the country, must be able to ensure compliance with existing regulations for the prevention of money laundering and money laundering through cryptocurrencies.
During the Bloomberg New Economy Gateway Latin America conference, held in Panama this week, Cortizo he pointed that He will most likely not sign the crypto law in its current state.
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Panama's crypto law includes FATF recommendations
For his part, Deputy Silva, the main promoter of Bill No. 697, argues that said legislation includes articles with the recommendations of the Financial Action Task Force (FATF) to ensure AML compliance and reduce the risk of money laundering with digital assets.
On Twitter, the Panamanian congressman stated that not having a crypto law that regulates the issue in a precise manner “is exactly what could put us on a blacklist” of the FATF, referring to the high-risk classifications that the organization makes according to the deficiencies of the legislation of its member countries.
“We should not wait for sanctions to be imposed before acting”, said the deputy.
The bill in question, which will make Panama the next country to make Bitcoin legal tender, will regulate the marketing and use of cryptocurrencies, as well as the issuance of digital securities and the tokenization of precious metals and other assets. All of this with the aim of promoting technological development and digitalization in Panama.
The crypto bill also states that companies and service providers with virtual assets in the country must comply with the measures established in the prevention and control mechanisms for illicit activities, such as money laundering, terrorist financing and the proliferation of weapons of mass destruction, as established in Law 23 of 2015.
In Article 17, this bill details that it will be The Superintendency of Banks is the body responsible for ensuring compliance with the FATF recommendations in the field of prevention of money laundering and anti-money laundering.
The cryptocurrency law was unanimously approved by the National Assembly of Panama on April 28. However, the signature of President Laurentino Cortizo is required for its formal publication and entry into force.
Since its approval by the Assembly, Cortizo has 30 days to sign the project and officially turn it into law.
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