Panama’s President Vetoes Crypto Law

Panamanian president Laurentino Cortizo has vetoed a law on cryptocurrencies which was approved by the National Assembly in April.

The decree regulates the trading of digital assets, blockchain-based payment systems, the issuance of tokenized securities and money transfers in virtual currencies.

During the vote, 38 members of the National Assembly supported the regulation and two officials abstained.

Cortizo was particularly not satisfied with some provisions of the bill. In particular, he has proposed tightening the rules aimed at preventing the legalization of the proceeds of crime, in accordance with the recommendations of the Financial Action Task Force on Money Laundering.

Congressman Gabriel Silva has reported that lawmakers will make adjustments to take into account Laurentino’s wishes.

Then, the State and Commerce Committee will review the document for compliance with the Constitution and financial laws.