Panama’s president has refused to sign new crypto laws into law, citing the necessity for tougher anti-money laundering (AML) compliance procedures.
The bill, which focused on issuing licenses to crypto exchanges and regulating transactions, was enacted by the country’s legislative assembly. The bill according to President Laurentino Cortizo, demands stricter anti-money laundering safeguards for cryptocurrency.
He is not anti-crypto but insists that the market follows worldwide anti-money laundering regulations.
“I will not sign that law if I am going to answer you right now with the knowledge I have, which is insufficient.” If the law contains provisions relating to money laundering, I must use extreme caution. Anti-money laundering efforts are extremely essential to him.
One legislator even proposed legislation to make bitcoin an official tender, but the proposal never materialized. Instead, the national assembly passed a crypto law that allows people to pay for various goods and services using cryptocurrency. To further legitimate the process, it aims to develop an official digital wallet.
Crypto is Piqueing Lawmakers’ Curiosity
Panama has joined a growing list of governments interested in implementing cryptocurrency and blockchain technology. El Salvador is at the top of the list, despite the fact that the results of its efforts have been uneven.
The Central African Republic recently made bitcoin legal tender, prompting the International Monetary Fund (IMF) to warn that the measure carried economic risks. Other countries have expressed interest in using blockchain technology and cryptocurrency to boost their economy, but they are hesitant to make bitcoin official tender.
Instead, they’re attempting to create a medium ground that allows for the limited use of crypto or blockchain technology, which should benefit the market. Even if current prices may not reflect it, the crypto market is expected to grow this year.
Also Read: Panama’s National Assembly Moves Cryptocurrency Law Discussion Forward
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