President Laurentino Cortizo of Panama has partially vetoed the country’s crypto bill.
President Cortizo vetoed the bill because it “requires adaptation to the norms that regulate our financial system.”
The bill will now go back to the country’s National Assembly for debate.
The Central American tax haven looked like it was headed to be the next Latin nation encouraging citizens to use Bitcoin when the country’s legislature approved a bill regulating the use of cryptocurrencies.
But President Cortizo said he wanted guarantees that the law would comply with global anti-money laundering standards.
The bill wants to let Panamanians buy everyday goods with cryptocurrency, including the payment of taxes, fees, and duties to the government.
It also formally recognizes DAOs—decentralized autonomous organizations—as legal entities and sets the framework for the country to issue tokenized securities and commodities, like gold and silver, via security token offerings (STOs).
If the bill does eventually get signed, Panama will be the second Latin American country where citizens can spend their crypto behind El Salvador.
But Panama’s bill differs to El Salvador’s Bitcoin Law as crypto would not become legal tender there—rather businesses would have a choice whether or not to accept digital assets for payment.