The debate over the Panamanian crypto industry’s future has entered a new phase as the Supreme Court of the nation prepares to rule, as reported by Cointelegraph.
According to Cointelegraph, the so-called “crypto bill,” according to Panamanian President Laurentino Cortizo, violates the fundamental principles of the constitution and is therefore unenforceable. He sent the crypto legislation passed last year to the high court for review on January 26.
Cointelegraph further noted that the president’s office claims that because articles 34 and 36 of the bill establish administrative structures within the government and violate the state’s separation of powers, they are not enforceable.
Following his partial veto of the bill in June, President Cortizo also claimed that the procedure used to approve the bill was insufficient. The president argued that the legislation required additional work to be in compliance with the new rules suggested by the Financial Action Task Force to increase fiscal transparency and combat money laundering, Cointelegraph noted.
To make the nation “compatible with the digital economy, blockchain, crypto assets, and the internet,” the bill was introduced in September 2021. On April 21, it was moved out of the Economic Affairs Committee, and a few days later, it was approved.
(With insights from Cointelegraph)