Laurentino Cortizo, the president of Panama, stated he would not support the bill as drafted today, despite the fact that the National Assembly ratified it “I’m not going to sign that bill right now if I’m going to respond to you with the knowledge I have right now,” Cortizo stated.
On May 18, he spoke on stage at the Bloomberg New Economy Gateway Latin America conference.
Only if the bill includes anti-money laundering legislation
For the law to receive presidential approval, it must take appropriate steps to combat money laundering. Cortizo added that his legal staff will have to examine the law and determine whether it should be passed in its entirety or in parts.
According to a news summary on the National Assembly website, lawmakers agreed to forward the bill, which “regulates the marketing and usage of crypto assets.”
Cortizo also indicated his belief that global crypto legislation is required.
Panama’s President, Laurentino Cortizo, has declared that he will not sign a law regulating the use of cryptocurrency until it includes stricter anti-money laundering requirements.
Last month, the country’s legislative assembly passed a bill that makes it easier for cryptocurrency exchanges to get licenses to operate in the country and supervises digital currency transactions.
The bill must be signed by the president to become law, and Cortizo said he wants reassurance that it complies with international anti-money laundering standards.
What exactly are the new cryptocurrency regulations?
Companies that facilitate crypto trading would be compelled to report tax information about those trades to the IRS (just like brokers of traditional investments like stocks) starting in the 2024 tax season under a prospective new rule being examined by lawmakers.
The need of anti-money laundering legislation
In the United Kingdom, the United States, and Europe, anti-money laundering (AML) has become a significant legislative and law enforcement concern.
The current path follows a series of high-profile examples over the last decade in which major financial institutions and other financial market participants failed to prevent illegal monies from being “laundered” through their accounts.
On a political level, there is a growing understanding among US, UK, and European governments that “black currency” vaults, hidden and disseminated through offshore banking networks and controlled by hostile state actors such as Russia, have been used to damage democratic elections.
Cryptocurrency is becoming a more important growth area, but enterprises must invest in strong internal controls to avoid falling foul of UK regulators.
Over the next few years, AML will be a major focus for regulators and criminal enforcement.
Underinvestment in risk functions (a blind spot shared by other “disruptor” company models); other technical issues in handling the pseudonymous character of crypto assets to comply with AML KYC regulations; and others are among the inherent vulnerabilities that make emerging cryptocurrency businesses an especially ripe target for regulatory enforcement.
Cryptocurrency companies need the appropriate assistance to develop their internal controls and communicate with regulators and law enforcement on the outside.
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2022/05/21/panamas-president-disapproves-of-crypto-regulation-bill/