Panama’s Supreme Court is set to decide the future of the local crypto industry.
President Laurentino Cortizo sent the crypto legislation passed last year to the high court for review, claiming the so-called crypto bill violates the constitution’s core principles and is unenforceable.
The Supreme Court must now decide whether to declare Bill No. 697 unenforceable or to approve it with modifications.
According to an official statement, the president’s office considers articles 34 and 36 of the bill unenforceable because they violate the state’s separation of powers and establish administrative structures within the government.
President Cortizo also argued that the bill had been approved through an inadequate procedure following his partial veto of the legislation in June. At the time, the president argued that the bill needed more work to comply with new regulations recommended by the Financial Action Task Force aimed at improving fiscal transparency and preventing money laundering.
A dispute between Panama’s National Assembly and the government has centered on this bill. In April, Panama lawmakers passed a legislative proposal aiming to regulate cryptocurrencies in the country, including Bitcoin. President Cortizo, however, warned a few weeks later that he wouldn’t sign it unless it included additional Anti-Money Laundering rules.
