Panamanian Bank Towerbank Turns “Bitcoin-Friendly”

•  Bitcoin withdrawn from exchanges can be deposited in the bank accounts. 
•  As of now, the bank does not provide any direct crypto-based services.

Towerbank, one of the top banks in Panama, has now joined the list of “crypto-friendly banks” that have voiced their support for Bitcoin adoption. Initially, this information was revealed unofficially after a blockchain meetup involving Towerbank and spread major anticipation among the Panamanian crypto community. 

Cristobal Pereira, executive director of LatAm blockchain summit, unveiled through his tweet the announcement of Towerbank regarding its transformation into a crypto-friendly institution supporting bitcoin deposits.

Indirect Integration of Crypto Assets With Bank

The Panamanian Bank confirmed its association with the crypto community in a tweet on Saturday. It enabled users to transact cryptos with a monthly limit of $5,000 USD.

Gabriel Campa, Vice President of Towerbank, explained:

“They must only present the following requirements: name, ID card or passport, telephone number, email, activity in which they are engaged, place of work, monthly income, and place of residence.”

To establish more security and to avoid fraudulent activities, Campa stated that the bank demands its clients to provide data related to their Bitcoin addresses with which they have traded on crypto exchanges. The 40-year-old bank has not officially announced any statements regarding the linking of the crypto accounts to the bank accounts. 

The Panama Crypto Bill, which would legalize Bitcoin wholly in the country, is still on hold by the Panamanian President Cortizo who is planning to veto this legislation. He fears that this crypto regulation might worsen the money laundering (ML) activities in the nation. 

As per the March 2022 report from Financial Action Task Force (FATF), Panama is listed under the “grey list” among 22 other nations that are deficient in addressing ML. This further toughens the pathway of crypto legislation in the nation.