Panamanian President Laurentino Cartiso said he would refuse to sign a bill passed by Parliament to regulate the use of cryptocurrencies in their current form.

Speaking at the Bloomberg New Economy Gateway Latin America conference, the politician said:

“If you respond immediately with the information I have and if that is not enough, I will not sign this law.”

The head of the country believes that the provisions of the document should provide adequate measures to combat money laundering. Cartiso added that the legal team will review the law and make recommendations on what to do about it. The President may sign or exercise a full or partial veto.

“I have to be very careful if there are money laundering provisions in the law. It is extremely important for us to oppose this activity.”

Panama is on the so-called “grey list” FATF. The list includes jurisdictions under the special control of the global regulator, as they are committed to rectifying the strategic shortcomings of their regimes. AML/FT. After the March report, country officials violated all agreed deadlines with the Group in 2019.

The Panamanian National Assembly approved the cryptocurrency law in March. Its norms also include the use of blockchain technology for the digitization of the state. Proponents believe the proposed rules will transform the country into a Latin American digital hub and attract investment from fintech companies.

“From what I’ve heard it’s a good and innovative law. But we have a solid financial system in Panama and one of the things I’m looking forward to is when the global regulation of crypto assets will happen,” Cartiso said.

Recall that Congressman Gabriel Silva completed work on the bill in September 2021, almost simultaneously with the legalization of bitcoin in El Salvador.

So far, only the Central African Republic, one of the poorest countries in Africa, has followed the example of this Latin American country.