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Panama’s President Laurentino Cortizo on Thursday said he will not sign the pending crypto bill into law until strict anti-money laundering clauses are added to the bill. The decision put pressure on crypto exchanges and firms already preparing to enter the new market.
Panama’s legislative assembly last month passed the bill regulating the use of cryptocurrencies and licensing crypto exchanges in the country. However, until the president signs the bill, the crypto adoption in Panama remains uncertain.
Panama President Suspends Crypto Law Signing
Panama’s President Laurentino Cortizo believes anti-money laundering rules are crucial for the country as Panama has been targeted for money laundering and other financial crimes, reported Bloomberg. The Financial Action Task Force (FATF) has added Panama to its “gray list” of countries with weak anti-money laundering provisions.
“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. I have to be very careful if the law has clauses related to money laundering activities. Anti-money laundering activities are very important to us.”
Cortizo administration is currently working on implementing recommendations of the FATF to prevent money laundering, terror financing, and financial crimes. In fact, the anti-money laundering rules are beneficial for crypto regulation. The use and commercialization of crypto assets in the country could further enhance offshore financial services.
