Crypto License in Panama
Benefit from Panama’s open and flexible regulatory framework: learn how to obtain the Panama crypto license and establish a strong presence in South America and Central America. Join thousands of foreign investors in the blockchain sector already operating in Panama and commence your steady growth from there.
Quick facts: Panama Crypto License
| License Type | Virtual Asset Service Provider (VASP) |
|---|---|
| Regulator | Superintendency of Banks of Panama (SBP) |
| Timeframe | 5-6 weeks |
| Government fees | USD 250 to 3,000 |
| Minimal capital | None |
| Corporate tax | 0% |
| Advantages | Tax incentives, high level of corporate privacy, US dollar-based banking |
Virtual asset service providers seeking registration in Latin America will find that Panama is one of the most flexible and permissive offshore hubs for crypto activities. Panama’s crypto regulations are influenced by international organizations, such as the Financial Action Task Force, which help shape the country’s compliance standards. With the recent developments in the local framework, the national assembly plays a key role in reviewing and enacting crypto-related legislation, as Panama aims to make it as clear and transparent as possible to help companies stay compliant even as regulations tighten.
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Regulatory Overview of the crypto license in Panama
The current Panamanian administration has taken more of a hands-off approach when it comes to cryptocurrency regulation. Panama’s regulatory approach to cryptocurrencies is shaped by the constitutional principle of Monetary Freedom. There are laws in place that are relevant to all companies, including the crypto ones. For example, Bill No. 247 seeks to establish a dedicated regulatory regime and offer legal clarity for digital assets and VASP activities in Panama. It’s important to note that cryptocurrencies are not considered legal tender in the country.
The main governing bodies tasked with issuing and overseeing cryptocurrency licenses are:
- Superintendency of Banks of Panama (SBP): Handing out permits and overseeing crypto-adjacent enterprises, such as cryptocurrency exchanges, is primarily the purview of this regulatory body. The SBP makes sure accredited firms are open and follow all financial rules, as well as ensure their ongoing compliance;
- Financial Analysis Unit (UAF):. The UAF is vital in keeping an eye on and making sure that AML/CFT (anti-money laundering and counter terrorist financing) rules are followed. To combat monetary laundering practices and the financing for terrorist organizations, it monitors the reporting of questionable financial transactions;
- Ministry of Commerce and Industries: More precisely, the General Directorate of Electronic Commerce within this ministry is involved in distributing licenses for cryptocurrency exchanger houses;
- National Securities Commission (CNV): The CNV oversees the securities market, including any market for assets that are considered securities, such as digital securities and funds. Its role is evolving as it increasingly regulates digital assets and ensures the compliance of crypto-related securities with applicable laws and regulations.
The company’s operations must all be conducted in a proper fashion and in line with the norms and laws imposed by the authorities mentioned above in order to successfully secure a Panama crypto permit. As the digital currency market expanded and even the most relaxed states tightened their stipulations, Panama became one of the top spots for those who seek to establish a cryptocurrency business from the ground up. An increasing number of startups have settled on this Latin American country as their base of operations due to its low crypto license fees and its relative ease of setting up.
Key Advantages of Panama Crypto License
Decentralized projects, crypto casinos, GameFi ventures, DEX platforms, and NFT marketplaces are increasingly choosing Panama as their operational hub. In 2025, the country’s reputation as a crypto-friendly destination has grown noticeably, attracting a wide variety of blockchain initiatives. While Panama has long been recognized for its renowned offshore gaming license, it is now emerging as one of the most cost-efficient and accommodating jurisdictions for virtual asset service providers (VASPs).
Its flexible regulatory landscape and competitive incorporation environment make it especially appealing for startups and established blockchain firms alike. Recently, several crypto bills and draft bills have been introduced in Panama’s legislature to formalize the legal status of cryptocurrencies, aiming to establish a clear legal framework for digital assets and boost the development of the blockchain technology domain in the country.
Below is an overview of the key advantages you can gain by establishing a crypto entity in Panama City or anywhere else in the country:
- Quick and easy incorporation;
- Streamlined company formation process for Web3 founders;
- Light framework, ideal for a crypto exchange license;
- Compatible with Panama’s gaming license;
- Effective for ICOs, IEOs, ITOs, INOs;
- Possibility to open a bank account.
Panama’s location between North and South America makes it a strategic hub for Web3 companies. Partnerships with global hubs like Singapore and Dubai enhance Panama’s status as a blockchain center. In addition, Panama’s quick company incorporation processes make it ideal for remote-first Web3 teams.
How and how long is it to get a Panama crypto license?
To establish a legal entity for a VASP in 2024 as quickly as possible, the best option is to incorporate a crypto business in Panama. Starting with a basic setup including a corporate account and a comprehensive set of legal policies and documentation, the whole procedure may take anywhere from one business week to approximately six to seven weeks.
There are, in essence, three stages to the whole process:
- Getting the necessary legal documents in order to conduct crypto activity in a suitable fashion;
- Forming the company and structuring it; and
- Opening corporate bank accounts (if applicable).
Crypto firms are not required to have economic substance in Panama. A local director, compliance officer, and office space are not required.
Legal documentation such as corporate policies, compliance standards, public legal disclaimers, etc., must be drafted in order for a licensed Panama firm to be properly formed. Although not required, such paperwork safeguards all parties involved against illegal activities and provides essential standards for the legitimate running of a specific endeavor.
Notably, this helps in demonstrating that the firm takes its operations seriously, which is essential for projects that want to set up a bank account.
What kinds of cryptocurrency activities are allowed in Panama with a crypto license?
There are primarily two types of licenses for cryptocurrency-related activities:
- Exchange Authorization: Any company planning to run an exchanger service for virtual currencies needs this authorization. Legal entities seeking such permits must first register with the Panamanian state as Specialized Financial Institutions (SFIs);
- Wallet Service Authorization: Companies offering digital currency wallet services are qualified to obtain this sort of permit.
It must be noted that both company types require the same standard crypto license. It allows them to partake in a host of operations pertaining to digital currencies.
This jurisdiction’s gambling license is the backbone of the most popular business model in the country, which is suitable for GameFi initiatives, web3 games, and crypto casinos. Panama is an ideal setting for lucrative endeavors like this to thrive and build momentum with little effort.
More and more decentralized initiatives are selecting this Republic as their center of operations. This includes DeFi protocols, decentralized exchange platforms without on-ramping services, decentralized autonomous organizations (DAOs), and NFT issuers.
The lenient legislation in Panama allows for the efficient operation of ICOs, IEOs, ITOs, INOs, and similar projects as well. However, before issuing cryptocurrencies, make sure it doesn’t meet the criteria for a security token. If it does, there might be additional requirements to be met.
Whether in Panama or in other jurisdictions, our clients met with success
LegalBison excels at adapting to challenges and demonstrates a perfect understanding of our business needs.
I highly recommend Legal Bison to any entrepreneur or business seeking top-notch services for their company formation. Their commitment to excellence and customer satisfaction is truly commendable.
The team of LegalBison was very helpful and fast in supporting my company’s structural set up. They are undoubtedly top-level experts when it comes to licensing and registrations in the crypto and web3 industry. Highly recommend!
As a result of the fruitful cooperation with LegalBison, Yellow Card obtained a VASP registration, fast and without any legal complications.
Very proactive, responsive, and able to provide solutions and advice. The firm is familiar with the new industry of blockchain and cryptocurrency
Quick set-up and straightforward process. It was a smooth process, we are happy to have chosen LegalBison as our Partner for incorporations, globally.
Requirements for a Panama Crypto License
To operate legally in Panama, businesses engaging in cryptocurrency activities must comply with specific licensing requirements, which are essential for obtaining licenses for crypto projects. These requirements typically include company registration with a proper corporate structure, due diligence procedures, and adherence to AML/KYC standards.
AML/CFT Policies (Anti-Money Laundering / Countering the Financing of Terrorism)
Crypto businesses in Panama are required to comply with the country’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) framework under Law 23 of 2015. This means implementing internal controls, monitoring transactions, and reporting any suspicious activity to the Financial Analysis Unit (UAF). Companies must establish risk-based procedures to identify and prevent illicit financial activities.
KYC and Customer Due Diligence
Know Your Customer (KYC) and customer due diligence are central to compliance for cryptocurrency-related activities in Panama. Businesses must verify the identity of all clients, collect and store supporting documents such as IDs and proof of address, and assess the risk level of each customer before engaging in transactions. Ongoing monitoring is also expected to detect unusual activity or changes in a customer’s risk profile. By maintaining thorough KYC procedures and comprehensive due diligence records, crypto companies can demonstrate transparency and align with Panama’s broader AML standards.
Record Keeping Requirements
Crypto businesses must follow general AML/CFT obligations that include strict record keeping practices. Companies are required to maintain transaction records, customer identification documents, and details of business relationships for at least five years. These records should be easily accessible to authorities such as the Financial Analysis Unit (UAF) upon request. Even without a dedicated crypto license regime, adhering to comprehensive record-keeping and transaction monitoring standards is considered best practice to ensure compliance and transparency.
Taxation for Blockchain Companies
Panama has a territorial tax system that only taxes income generated within its borders. Panama taxes local income at a rate of 25%, but foreign profits are tax-free, benefiting global businesses. Profits from global token trading and issuance to non-Panamanian users are generally exempt from taxation in Panama. Individuals in Panama converting crypto may pay up to 7% capital gains tax only if it constitutes local income; conversions made abroad remain tax-free.
To thoroughly prepare your project for Panamanian registration, we recommend booking a consultation with international compliance specialists first and foremost. Professional assistance, such as that from LegalBison's experts, will help you safeguard your blockchain company from potential legal risks.
Step-by-Step: How to obtain a crypto license in Panama
When it comes to the many routes that may be taken to receive a cryptocurrency license, Panama provides one of the quickest and most straightforward procedures. As a result of the fact that the country takes a laissez-faire approach to cryptocurrency businesses, there is no rigid licensing procedure that may include an application and an evaluation of the project. Whatever the more specific situation may be, best practices are still prevalent, and LegalBison provides a simplified step-by-step strategy to establish a strong legal foundation for your business.
One of the key benefits of Panama as an offshore jurisdiction is its territorial tax regime: only income generated within Panama is subject to corporate income tax, while foreign-sourced income — including most digital asset business activities conducted outside Panama — is exempt. In simple terms, businesses sourcing their general income abroad don’t have to pay taxes on corporate income in the country.
STEP 1: ACQUIRE NECESSARY DOCUMENTATION
During this step, you put together and hand in the necessary documentation, as well as a due diligence form that has been filled out. In addition, it is possible that you will be required to provide a business strategy as well as a description of the operations inside your company. The line-up of required documentation for the whole process usually includes:
- Identification Documents. Copies of IDs or passports for all directors and stockholders;
- Proof of Address. A recently received electricity bill or bank statement that includes the directors’ and shareholders’ addresses is required;
- Due Diligence Form. A form that has been correctly filled out and encompasses specific information on the activities of the firm as well as the important individuals;
- Business Plan. A detailed strategy that outlines your venture’s core concept, business model, the market you want to concentrate on, and your financial projections;
- Description of Business Activities. The precise crypto-related activities that your firm will participate in, along with key details about those activities.
STEP 2: REGISTER A LEGAL ENTITY
The Specialized Financial Institutions (SFI) category is the one under which you must set up a firm in the Republic. The process involves creating a legal entity that is recognized and regulated under this category. The steps usually include:
- Selecting a business name that’s relevant and not already taken;
- Selecting the company type, common options include a Corporation (Sociedad Anónima) or a Limited Liability Company (Sociedad de Responsabilidad Limitada);
- Preparing the Articles of Incorporation;
- Appointing directors and shareholders, and beyond.
STEP 3 (OPTIONAL): OPEN A B2B AND B2C CORPORATE ACCOUNT
As Panama is considered an offshore jurisdiction, it can be difficult or expensive to open a bank account for a crypto company based in Panama. This is why this jurisdiction gained more popularity with projects able to operate fully with cryptocurrencies.
Opening a bank account for a crypto company in Panama is possible, but one must acknowledge that it can prove long, and that LegalBison’s network of traditional banking partners may expect considerable documentation and charge important fees for the onboarding and the maintenance of the account.
Costs and Fees
Registering a blockchain business in Panama is relatively cheap compared to major onshore locations. There are two main classes of expenses that every entrepreneur will have to think about: the company establishment fee and the licensing fee.
- Setting up a basic International Business Company (IBC) for a crypto license can start at $1,700;
- Annual fees related to the crypto licenses in Panama can range from $250 to $3,000;
- At the moment, there is no minimum capital requirement established for Panamanian offshore crypto entities.
As for the timing, the license approval can take approximately 21 to 28 days, depending on the regulator’s workload and the completeness of your application package.
Compliance and maintenance requirements after securing a Panama crypto license
Panama does not impose any particularly stringent post-licensing obligations on crypto companies. The overall list of requirements more or less coincides with that of most offshore locations. Since the jurisdiction requires no physical office or local presence, the compliance and maintenance conditions require business owners to:
- Keep corporate records up to date, including shareholders, directors and company structure
- Maintain a registered local agent in Panama
- Pay annual government fees to keep the company and license in good standing
- Prepare and keep financial statements, ready for review if requested
- Follow AML and KYC procedures: verify clients, monitor transactions and track potential risks
- Report any suspicious activities to the relevant financial authority
- Review internal compliance policies regularly and update them as regulations evolve
As long as you stick to these requirements, you may not worry about the long-standing reputation of your firm and its protection from legal liability.
Common misconceptions about the Panama crypto license
A lot of people believe that getting a Panama crypto license automatically turns a business into a fully regulated exchange with global banking access. In reality, the license gives permission to run crypto-related activities, but it does not grant the same status as a financial or investment institution. It also does not guarantee that banks or payment providers will approve the company and agree to cooperate. Even with the license, businesses can still face detailed checks and risk assessments from financial institutions, especially when handling international transactions. This is where LegalBison steps in, helping companies ensure their compliance in every little detail and maintain a good reputation.
Another common misconception is that a Panama license means no rules, no taxes, and complete anonymity. While Panama has a friendly tax system and does not tax income earned outside the country, crypto companies are still required to keep accounting records, follow AML and KYC procedures, and show proof that their funds come from legitimate sources. The government has tightened compliance standards in recent years to align with international regulations. The license is a solid choice for crypto businesses, but it is not a loophole to avoid responsibility or oversight completely.
What are the texts composing the legal framework of the Panama crypto license
When it comes to incorporation and subsequent licensing in the country, several legislations comprise the foundational building block of any VASP company in Panama:
- Panama Companies Act (Sociedad Anónima – S.A.);
- The IBC Act;
- Law 23 of 2015 and subsequent updates;
- Bill No. 247 (Introduced 2025).
All of these documents assist in regulating and overseeing the compliance of Panamanian businesses, including entities in the blockchain sector. In particular, the most recent Bill No. 247 is one of the latest legislative initiatives that seeks to establish a dedicated regulatory regime for digital assets and VASP activities, potentially including formal licensing requirements for various VASP activities.
Costs and Fees
Registering a blockchain business in Panama is relatively cheap compared to major onshore locations. There are two main classes of expenses that every entrepreneur will have to think about: the company establishment fee and the licensing fee.
- Setting up a basic International Business Company (IBC) for a crypto license can start at $1,700;
- Annual fees related to the crypto licenses in Panama can range from $250 to $3,000;
- At the moment, there is no minimum capital requirement established for Panamanian offshore crypto entities.
As for the timing, the license approval can take approximately 21 to 28 days, depending on the regulator’s workload and the completeness of your application package.
Compliance and maintenance requirements after securing a Panama crypto license
Panama does not impose any particularly stringent post-licensing obligations on crypto companies. The overall list of requirements more or less coincides with that of most offshore locations. Since the jurisdiction requires no physical office or local presence, the compliance and maintenance conditions require business owners to:
- Keep corporate records up to date, including shareholders, directors and company structure
- Maintain a registered local agent in Panama
- Pay annual government fees to keep the company and license in good standing
- Prepare and keep financial statements, ready for review if requested
- Follow AML and KYC procedures: verify clients, monitor transactions and track potential risks
- Report any suspicious activities to the relevant financial authority
- Review internal compliance policies regularly and update them as regulations evolve
As long as you stick to these requirements, you may not worry about the long-standing reputation of your firm and its protection from legal liability.
Common misconceptions about the Panama crypto license
A lot of people believe that getting a Panama crypto license automatically turns a business into a fully regulated exchange with global banking access. In reality, the license gives permission to run crypto-related activities, but it does not grant the same status as a financial or investment institution. It also does not guarantee that banks or payment providers will approve the company and agree to cooperate. Even with the license, businesses can still face detailed checks and risk assessments from financial institutions, especially when handling international transactions. This is where LegalBison steps in, helping companies ensure their compliance in every little detail and maintain a good reputation.
Another common misconception is that a Panama license means no rules, no taxes, and complete anonymity. While Panama has a friendly tax system and does not tax income earned outside the country, crypto companies are still required to keep accounting records, follow AML and KYC procedures, and show proof that their funds come from legitimate sources. The government has tightened compliance standards in recent years to align with international regulations. The license is a solid choice for crypto businesses, but it is not a loophole to avoid responsibility or oversight completely.
What are the texts composing the legal framework of the Panama crypto license
When it comes to incorporation and subsequent licensing in the country, several legislations comprise the foundational building block of any VASP company in Panama:
- Panama Companies Act (Sociedad Anónima – S.A.);
- The IBC Act;
- Law 23 of 2015 and subsequent updates;
- Bill No. 247 (Introduced 2025).
All of these documents assist in regulating and overseeing the compliance of Panamanian businesses, including entities in the blockchain sector. In particular, the most recent Bill No. 247 is one of the latest legislative initiatives that seeks to establish a dedicated regulatory regime for digital assets and VASP activities, potentially including formal licensing requirements for various VASP activities.
About the Crypto License in Panama
Businesses in Panama that have been properly established in the crypto industry are permitted to operate legally, provided that their activities remain within the boundaries of any laws that are relevant. At the moment of writing, there is no legislation that specifically addresses firms that deal in cryptocurrencies. This means that cryptocurrency companies are, in principle, permitted to operate freely in this jurisdiction provided that they’re in full compliance with the laws that are in effect.
Yes, all operations utilizing cryptocurrencies are legally permitted in Panama. Because there is no specific legislation in place, the country allows crypto operations to take place, provided that they are in accordance with all of the pertinent laws and regulations that are already in place in the nation. In particular, rules connect to security and singular regulations pertaining to finances, for the purpose of providing services that may be assimilated as such.
No. The country is oftentimes regarded as a crypto tax haven. Generally speaking, monetary transfers involving cryptocurrencies are excluded from the capital gains tax. This indicates that earnings from cryptocurrency investments are exempt from taxes so long as they are regarded as income from a foreign source. This is in accordance with the territorial taxation structure that Panama employs.
Creating a cryptocurrency corporation based in Panama is, without a doubt, one of the most cost-effective and expedient methods of entering this lucrative niche in 2024. In contrast to more restrictive frameworks, it is feasible to fully launch a cryptocurrency firm in Panama with a budget of four figures. It’s not applicable in all cases, but most will be able to enjoy a very affordable setup.
Activities involving cryptocurrencies may be carried out in Panama by a corporation that has the necessary legal permits. In order to avoid breaking the law or causing concerns to other parties, it is essential to have legal support as well as relevant paperwork.
Given the government’s laissez-faire attitude toward cryptocurrency enterprises and the lack of a specific cryptocurrency tax, it is reasonable to consider Panama to be a crypto-friendly nation.
Start your crypto company in Panama today
Registering a crypto venture in Panama requires not only general legal knowledge but also a profound understanding of the local regulatory nuances. LegalBison has proper experience in navigating businesses through crypto registration in Panama and ensuring compliance in every aspect. With over 1,000 satisfied clients among companies worldwide, LegalBison always finds the most fitting solution for your blockchain project. To get started with building your crypto business in Panama, book a free consultation on this page, and our experts will get back to you within 24 hours.
Legal experts in designing solutions for crypto licensing worldwide.
Experienced crypto and FinTech MLRO with company structuring and PI onboarding.
Start your crypto company in Panama today
Registering a crypto venture in Panama requires not only general legal knowledge but also a profound understanding of the local regulatory nuances. LegalBison has proper experience in navigating businesses through crypto registration in Panama and ensuring compliance in every aspect. With over 1,000 satisfied clients among companies worldwide, LegalBison always finds the most fitting solution for your blockchain project. To get started with building your crypto business in Panama, book a free consultation on this page, and our experts will get back to you within 24 hours.
Legal experts in designing solutions for crypto licensing worldwide.
Experienced crypto and FinTech MLRO with company structuring and PI onboarding.