Panamanian President Laurentino Cortiso said he may veto a recently approved bill that would allow citizens to use cryptocurrencies as a form of payment.
“I have to be very careful if there are provisions in the law regarding money laundering activities or anti-money laundering activities,” Cortiso said.
He noted that his country is trying to be removed from the “gray list” of the Financial Action Task Force on Money Laundering (FATF). That means FATF is watching the country more closely after identifying flaws in the system.
In March, FATF urged Panama to prepare an “action plan” to address its problems by June.
The cryptocurrency bill, introduced by Panamanian Congressman Gabriel Silva and approved in the April 28 plenary session of the Legislative Assembly, requires the president’s signature to take effect.
While the legislation does not allow any cryptocurrency to become legal tender, it does make free use of cryptocurrency as a means of payment possible.