Panama’s Supreme Court will have to decide whether or not it will agree to the enforceability of a new virtual currency legislation for the country.
An official disclosure confirmed that the country’s executive branch had forwarded the bill to the judiciary to give its ruling. The proposed legislation, termed Bill No. 697, was rejected by Panamanian President Laurentino Cortizo because it impugned certain aspects of the country’s constitution.
“Among the considerations made by the Executive when objecting to the bill submitted to the National Assembly, it is specified that the legislative initiative requires ‘adaptation’ to the norms that regulate the financial system and the Panamanian monetary model,” the official release read.
In particular, the president’s office was against the bill because of articles 34 and 36, which seemingly infringed on the enshrined principles of separation of power.
Since the presentation of the bill, Panama’s legislature and its executive arm of government have been at loggerheads over its content. The first shots were fired in June when President Cortizo hinted that he would not append his signature to a bill over its omission of anti-money laundering (AML) rules.
In addition to ignoring standard AML procedures, President Cortizo’s complaint with the bill involves claims that the legislature proceeded with the bill after his partial veto. Upon submission, President Cortizo vetoed it, but virtual currency enthusiasts are watching with bated breath for the court’s interpretation on the matter.
Based on the wording of the bill, parliamentarians are seeking to rejuvenate Panama’s virtual currency ecosystem in line with other pioneering jurisdictions. If approved, the bill aims to make Panama “compatible with the digital economy, blockchain, crypto assets, and the internet.”
Other sweeping changes following the bill’s introduction will include the unrestricted use of virtual currencies like BTC and Ethereum (ETH) as payment options.