Panama’s “bitcoin (BTC) and crypto-friendly” bank Towerbank states it’ll bar its customers from using crypto mixers – within the wake from the U . s . States Office of Foreign Assets Control (OFAC)’s proceed to sanction Tornado Cash earlier this year.
As formerly reported, the OFAC has added the Ethereum (ETH)-powered crypto mixing service to the Specifically Designated Nationals list, with Nederlander police arresting a suspected Tornado developer who “facilitated money laundering” now.
Latin American parties will also be responding – with Towerbank apparently using the lead in Panama. Experts, however, have mentioned that it’s likely the Panamanian banking regulator will follow-up having a move of their own.
CriptoNoticias reported that Towerbank users using Tornado could face sanctions for example account suspensions or further punitive measures.
The press outlet quoted the mind from the bank’s crypto and blockchain division, Gabriel Campa, as proclaiming that crypto mixers are “often employed for illicit activities.”
He recommended the bank agreed using the OFAC’s move, but established that the ban wouldn’t always be retrospective.
Campa stated:
“If you’re somebody that utilized mixers years ago, we would need to evaluate [your situation], because it might not have constituted illegal behavior at that time.”
Towerbank has positioned itself because the bank preferred by crypto investors, while offering dedicated crypto accounts along with a Visa bank card that enables users to “operate with digital assets.”
But Campa ignored the concept Towerbank could escape from the crypto space, stating:
“Bitcoin and cryptocurrencies are not going anywhere soon, so our bank needs to be a part of that.”
Rodrigo Icaza, the manager Director from the Panamanian Chamber of Digital Commerce and Blockchain, claimed the banking regulator, the Superintendency of Banks of Panama (SBP), would probably be spurred into action through the Towerbank move.
Icaza opined the SBP may likely “swing the ax” at gold coin mixers and told the crypto community to “be aware and act carefully” to be able to win the “trust” from the banking sector.
He added the bitcoin community needed “to be formalized” and really should work “with rules,” instead of thinking of getting around them.
Icaza advised the city to self-regulate by producing annual statements of crypto holdings and crypto-related earnings. This, he stated, allows banks to develop profiles of would-be crypto customers – and would let crypto holders gain in trust from banks.
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Find out more:
– Tornado Cash Ban Blows Winds of Both Division and Unity Through Crypto Community
– Panama’s ‘Lost Crypto Opportunity’
– Panamanian MP: Our Draft Crypto Law Differs from El Salvador’s Bitcoin Law
– Crypto Bills in Panama, South america Progressing Fast, but Argentina Province Transmits Mining Warning
– Banking Giant Santander is placed to provide Crypto Buying and selling to Brazilians as Crypto ‘Is Here to Stay’
– Portuguese Banks Stop Offering Services to Crypto Exchanges, Citing ‘Risk’ as Rationale
