Panama’s President Demands More Oversight Before Signing Crypto Bill

The Standoff: Cortizo and the Crypto Law

In a recent twist that feels straight out of a political drama, Panama’s President Laurentino Cortizo declared he won’t sign off on a freshly approved crypto bill unless it comes with some serious Anti-Money Laundering (AML) measures. This declaration came after the National Assembly’s recent nod to the legislation, leaving many wondering whether Panama might become the next big player in the crypto arena or just a cautionary tale.

The Legislative Circus

During his keynote at the Bloomberg New Economy Gateway Latin America conference, Cortizo described the approved legislation as an “innovative law” that has some promising features. However, he maintained a firm stance on ensuring that potential criminal misuse of cryptocurrencies is tackled before he even thinks about putting pen to paper. “I will not sign that law at this moment,” he assured the audience, punctuating his point.

Curing Crypto Confusion: The Bill’s Purpose

The Crypto Law, having passed its third debate on April 28, aims to regulate everything from the trading and use of crypto assets to the tokenization of precious metals. Think of it as an ambitious shopping list for crypto enthusiasts! Yet, unlike El Salvador’s Bitcoin Law which mandates local businesses to accept BTC, Panama’s approach seems more flexible, granting the option rather than a requirement. Fingers crossed, many small businesses might breathe easier without having to navigate complex licensing for accepting cryptocurrencies.

A Tale of Two Perspectives

In one corner, we have pro-crypto lawmaker Gabriel Silva, who passionately argues that the Crypto Law could significantly boost financial inclusion and job opportunities in Panama. In his vision, cryptocurrencies are the ticket to a modern economic renaissance!

On the flip side, economist Ernesto Bazán throws some cold water on the party, urging the president to veto the bill. According to him, without clear regulations, the crypto landscape in Panama could turn into the Wild West, risking public trust and financial stability. He warned, “Weak regulation would open a window of opportunity for greater fraud, cyberattacks and criminal activities.” Yeah, nobody wants that kind of digital chaos!

The Path Forward: What Lies Ahead?

As of now, the ball is in President Cortizo’s court. Will he embrace the crypto future or play it safe? The world is watching, and so are the blockchain enthusiasts of Panama. Expect to see more discussions about regulatory frameworks, economic stability, and that elusive balance between innovation and caution in the days to come.