Cryptocurrency Law in Panama: Strict Measures

Panama has become notorious as a central country for money laundering and a popular destination for offshore accounts. expression Panama Papers He nearly gained entry to LaRose in the wake of the fallout from the scandal of the same name. When it comes to building legislation on cryptocurrencies, the state authorities want to take all measures to ensure that this country, which is often criticized for its “strategic flaws” in the fight against money laundering, does not cement its bad reputation in this regard. money laundering case. The President of Panama, Laurentino Cortizo, in any case, does not intend to give in to this plan. According to Bloomberg News, he said he did not want to sign the new cryptocurrency law until it included provisions for stricter anti-money laundering controls.

Cortizo wants tougher legislation against money laundering using cryptocurrency

The bill has been voted on since last January. But the country’s legislature is required to review its version. For the President of the Republic, there is no doubt that he will continue to give the world reason to believe that Panama is the epicenter of money laundering.

During a speech at the Bloomberg News Latin American Economy Gateway conference, Cortizo reiterated his position on this issue: “I must be very careful if the law contains clauses related to money laundering activities. Anti-money laundering activities are very important to us.”

If passed, the law should allow cryptocurrency exchanges to obtain the license they need to operate in the country. However, it will also regulate all cryptocurrency transactions.

The bill would also allow the government to place public records on the blockchain. Supporters of the bill believe it will make Panama an attractive country for fintech companies looking to invest in Latin America. Even the president admitted it was a good law by saying, “It’s an ingenious law from what I’ve heard.”

Correcting the image of the country

A recent International Monetary Fund report revealed: [Les crypto] Can be used to divert the proceeds of corruption or circumvent capital controlsFurthermore, the main argument of critics of cryptocurrency is that they facilitate financial crime. To this reputation we must add Panama’s reputation for money laundering. The Financial Action Task Force, the global watchdog on money laundering and terrorist financing, has listed Panama is in the list of countries that have Strategic shortcomings on money laundering. Panama is an attractive destination for those looking to launder money. One of the risk factors is its proximity to Mexico and Colombia, two countries where drug organizations operate extensively.

So Cortizo’s reservations about the bill are quite understandable. he is

He pledged to change this situation in the country by implementing the recommendations of the task force. It also plans to tighten restrictions on dirty money.

In conclusion, it must be remembered that President Cortizo does not intend to reject the bill as a whole. As mentioned, he has a generally positive opinion of the project, even if he thinks it is what it is, it’s not fighting enough against money laundering. We are waiting for the last draft, after the revision of the Legislative Assembly of Panama.

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Luke Jose Adjinaco

Far from dampening my enthusiasm, an unsuccessful investment in a cryptocurrency in 2017 only added to my enthusiasm. So I resolved to study and understand the blockchain and its many uses and pass on my pen information related to this ecosystem.

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