President of Panama Partially Vetoes Crypto Law Passed by National Assembly

Panamanian President Laurentino Cortizo vetoed the recently approved cryptocurrency law, raising a series of objections. The President’s views only touch on specific articles and do not affect the entire law. However, these articles of the bill need to be discussed again in light of Cortizo’s views.

Cortizo Vetoes Panama’s Cryptocurrency Law

Laurentino Cortizo, the president of Panama, vetoed the recently approved cryptocurrency law and sent it back to the National Assembly for debate. The veto was partial, with President Cortizo reconsidering the legality of some, but not all, articles of the approved bill.

The announcement was made on social media by Gabriel Silva, one of the proponents of the law. Silva criticized the decision made by Cortizo,stating that it was

a lost opportunity to create jobs, attract investment, and bring technology and innovation into the public sector. The country deserves more opportunities and financial inclusion.

Silva also explained that he is considering the necessary changes to the bill and that it will now go to two committees of the parliament (the Government Committee and the Trade Committee). After this, it will again need to be debated twice. However, he did not indicate which article of the law Cortisso vetoed.

The so-called Crypto Law, the result of the merger of two different cryptocurrency law projects, defined a blockchain-based identity system and also defined the use of blockchain technology to improve transparency in public spending.

Expressions of Concern

The veto of parts of the law by Cortizo’s team was not a complete surprise. The Panamanian president had expressed concerns about the law’s scope and some of its definitions; when asked about the approval of the crypto law in an interview in May, Cortizo stated.

The information I have, it is not enough, but if I am going to answer you now, I will not sign that law.

Cortizo said that the law would prevent money laundering issues from being sanctioned if they are not resolved, as he maintains a difficult relationship with the Financial Action Working Group, which has put him on the gray list along with countries like the Philippines, Yemen, and Turkey. However, he also noted that the bill is an innovative and good law.

Image Credit:: Shutterstock, Pixabay, Wiki Commons