Panama’s President Laurentino Cortizo said in a statement that citizens of the Central American country cryptocurrency He said he could veto the recently approved bill that would allow him to use his currency units as a form of payment.
Panama President Laurentino Cortizo Will Most Likely Veto Cryptocurrency Law
Speaking at a Bloomberg event, Cortizo said that although he described the bill as “good law”, he tended not to approve it with the information available.
“I have to be very careful if there are provisions in the law regarding money laundering activities or anti-money laundering activities, this is very important to us,” Cortizo said.
Cortizo said his country is busy trying to get off the “grey list” of the Financial Action Task Force (FATF).
Having a country on the list means that the global anti-money laundering group monitors a country more closely after detecting a deficiency in money laundering and counter-terrorism financing controls.
In March, the FATF warned Panama to create a “plan of action” by June to address its money laundering problems.
Crypto Law Passed Smoothly In Parliament
The crypto bill, presented by Congressman Gabriel Silva and passed by a 40-0 vote at the plenary session of the Legislature on April 28, requires Cortizo’s signature to become law. Cortizo must make his decision no later than 30 days after the bill is passed.
While the bill does not allow a cryptocurrency to become a legal tender, it does make it possible to use cryptocurrencies as a means of payment for any transaction.
The bill standing before the president also allows digital asset companies to operate in Panama and qualifies crypto assets as foreign-sourced income.
According to Panama’s regional taxation system, capital gains tax is not required for foreign-sourced assets.
*Not investment advice.