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Panamanian Regulator May ‘Swing the Axe’ after Bitcoin-friendly Bank Restricts Using Crypto Mixers

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  • Towerbank banned its customer from using crypto mixers.

Towerbank is a “Bitcoin and crypto-friendly” based in Panama; the bank said it would ban its customers from using crypto mixers in the wake of the United States office of foreign assets control (OFAC) move to approve Tornado Cash earlier this month.  

OFAC added a new feature to Ethereum (ETH) powered crypto mixing service to its specially designated Nationals list. At the beginning of this week, Dutch police arrested a suspected Tornado developer who “facilitated money laundering.”  

Parties of Latin America are also responding to Towerbank taking the lead in Panama. Regardless, experts said that it is likely that the Panamanian banking regulator will follow up on its own.   

A report mentions that users of Towerbank who are collectively using Tornado can face sanctions such as blocking an account or other disciplinary measures. 

A media firm quoted the statement of Gabriel Campa, head of the bank’s crypto and blockchain unit, that crypto mixers are ” often used for illegal activities.”

Gabriel Campa stated, “If you are someone who made use of mixers years ago, we would have to analyze [your case], because it may not have constituted illegal behavior at the time.”

Towerbank has established itself as the bank of choice for crypto passionates and offers dedicated crypto accounts and visa debit cards that permit users to “operate with digital assets.”

Campa said that tower bank could not stay away from the crypto space and quoted his statement, “Bitcoin and cryptocurrencies are here to stay, so our bank has to be part of that.”

According to Rodrigo Icaza, the executive director of the Panamanian Chamber of Digital Commerce and Blockchain, the action by Towerbank would probably prompt the banking regulator, the superintendency of Banks of Panama(SBP), to take further action. 

ALSO READ: Bitcoin Mining Difficulty Hits 5-Month Low

Steve Anderrson

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