Cortizo restricts from signing the bill as it lacks regulation on anti-social activities.
The Panama bill included Bitcoin along with 8 other cryptos to use for payment.
Panama, the transcontinental continent, passed the crypto bill on April 28 during their third debate but the conversion of the bill to law seems to face a hurdle.
President Laurentino Cortizo, says he will decline to sign the law since cryptocurrency has loopholes for anti-social activities.
Cortizo states:
“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.”
Currently, Cortizo lawyers are reviewing the bill and will suggest recommendations.
Cortizo sees the law as innovative and good, he is okay with passing certain parts of the bill but the lack of money-laundry regulations is the main concern and he is withholding international law for Cryptos.
Panama Crypto Bill
Panamanian lawmaker, Gabriel Silva, who drafted the bill, tweeted about it once the legislation was passed in the assembly. The bill listed nine cryptocurrencies that were to be used as a mode of payment, those are Bitcoin, Ethereum, XRP, Litecoin, XDC Network, Elrond, Stellar, IOTA, and Algorand.
Gabriel Silva tweet:
After El Salvador and the Central African Republic accepted Bitcoin as official currency, countries around the globe are making efforts to include crypto in legal standards. The anonymity of the cryptocurrency fears many nations as it attracts frauds and illegal transactions.
Panama is considered to be a tax haven, as the country exposed the popular figures who had hidden wealth and necessary steps were taken against them. The country has a good financial back structure and they are very vigilant in framing any new set of laws.