Panama’s president vetoes crypto bill over FATF recommendations

Panama’s President Laurentino Cortizo has imposed a partial veto on the bill regulating the circulation of digital assets. сообщает Cointelegraph.

According to the president, the document must in all cases comply with the FATF standards, which provide “fiscal transparency and anti-money laundering.”

Cortizo called for the regulatory act to be revised to align with the country’s financial rules.

“The country deserves more opportunities and financial inclusion,” Silva added, saying that Congress will study the veto to draft amendments, which will then be forwarded to debate.

If the bill is eventually signed, Panama will become the second after El Salvador country in Central America to recognise Bitcoin as legal tender.

However, unlike El Salvador, the Panamanian bill applies to all cryptocurrencies and does not require local businesses to accept digital assets. The document also covers the issuance of digital securities, regulates the tokenisation of precious metals and the digitisation of identity using blockchain.

The bill regulating the circulation of digital assets in Panama was introduced in September 2021. In March 2022, it was approved by the National Assembly.

In May 2022, President Laurentino Cortizo stated that he would not sign the document in its current form because of money-laundering risks.

Follow ForkLog’s Bitcoin news on our Telegram — cryptocurrency news, rates and analysis.