Why choose Panama for a crypto license
Securing a crypto license in Panama is often the gateway for entrepreneurs eager to launch cryptocurrency platforms in this dynamic Central American nation. Panama City’s modern skyline reflects a country investing in fintech. Many reasons make Panama stand out for a digital asset license. For one, tax incentives in Panama are hard to beat — the nation taxes only income earned within its borders, so crypto profits from abroad are effectively tax-free. In practice, this means trades on international exchanges can yield higher net earnings. Panama also uses the US dollar and has a stable banking infrastructure, so there’s no currency risk. Importantly, authorities have shown a friendly attitude toward blockchain. Panama’s ten-year plan for financial modernization expressly includes cryptocurrencies, and legislators have introduced bills to recognize Bitcoin and other tokens as valid payment methods. In short, obtaining a Panama crypto license puts your business in a rapidly evolving FinTech hub, with government support and access to the American market.
Benefits of a cryptocurrency license in Panama
Panama’s territorial tax system means most cryptocurrency gains are tax-free. A cryptocurrency license in Panama lets you legally benefit from this rule. For example, crypto trading profits earned abroad escape Panama’s 25% income tax, and there is no value-added tax (VAT) on cryptocurrency transactions.
Operational freedom
A Panamanian license lets you run exchanges, wallets, or blockchain services with minimal red tape. Notably, no local offices or directors are required.
Regulatory support
Even without strict crypto laws, Panama treats licensed crypto firms as official financial players. By incorporating as an SFI and obtaining a crypto license, you gain legitimacy under the laws of Panama. By getting a license, you show regulators you’re playing by the rules. Licensed entities must follow banking rules (like AML/KYC), which can build customer trust.
Geographical advantage
Located at the crossroads of North and South America with a U.S.-aligned legal system and dollar currency, Panama provides stability and global access. For U.S. investors, doing business here feels familiar, yet you also gain preferred access to Latin American markets.
Panama crypto regulation overview
Panama’s crypto regulations are still taking shape. Today, there is no dedicated crypto law — instead, digital assets fall under existing banking and securities rules. This means your crypto firm operates in a kind of gray area: it’s not illegal, but there isn’t a fast lane. In practice, Panama’s regulators have decided that crypto companies belong in the Specialized Financial Institution (SFI) category. So if you build an exchange or wallet, you register your company as an SFI with the government. The SFI license is the de facto “crypto license in Panama.”
Panama’s Central Bank has already signaled what it expects: any crypto SFI must implement strong anti-money laundering and KYC controls. Firms are told to notify clients of crypto risks and to perform full due diligence on users. In other words, the usual banking rules apply to crypto: verify your customers, monitor transactions, and report suspicious activity. All licensed crypto operators follow Panama’s AML/CFT framework, which is aligned with global standards.
Legal status of cryptocurrencies in Panama
In short, cryptocurrency is currently legal in Panama. There’s no ban on trading Bitcoin, launching an exchange, or selling NFTs. A 2021 government proposal put forward a framework to grant crypto “financial freedom” to the unbanked, and even though that specific bill stalled, it underscored the friendly sentiment. As noted above, recent drafts would give crypto legal tender status as an option (not a requirement). Until new laws arrive, Panama’s strategy is simple: treat crypto like a currency or commodity. You can buy, sell, and hold crypto with essentially the same rights you’d have for dollars or gold — provided you do it through a licensed entity.
Key Features of Panama crypto regulation
No specialized crypto regulator. Crypto firms currently register and report under existing financial bodies. The Superintendencia de Bancos and the Ministry of Economy (MICI) oversee SFIs, including crypto SFI companies. For the first three years, your crypto SFI would liaise with the Ministry of Economy, after which formal oversight shifts to the banking regulator.
AML/KYC obligations. Licensed crypto companies must comply with international anti-money laundering laws. This means robust customer KYC, transaction monitoring, and reporting of suspicious transfers. Panama follows FATF recommendations closely, so expect full AML compliance similar to banks.
Capital requirements. While Panama is less strict than some jurisdictions, it still expects crypto firms to have adequate capital and processes. You’ll need a minimum operating fund (usually evidenced by a bank statement of startup capital) and possibly a technical audit report on your systems.
Tax & Reporting. Panama’s territorial tax regime governs crypto firms. Only income earned in Panama is taxed (at a 25% corporate rate); crypto trading profits made abroad are generally tax-exempt. There is no special crypto VAT. In practice, maintain ordinary corporate accounting and file returns on any local revenue. As of now, capital gains from crypto are outside Panama’s tax scope.
Website and disclosure rules. Panama requires financial companies to publish basic information. Licensed firms must register their business name, physical address, website domain, contact emails, terms of use, and privacy policy in the Public Registry. Authorities also expect you to file a clear description of your crypto services and business model.
Types of Panama crypto licenses
Panama crypto exchange license
A crypto exchange license allows a company to operate a cryptocurrency trading platform. If you want to match buyers and sellers of Bitcoin or other coins in Panama, you must be registered as an SFI offering exchange services. Obtaining this Panama crypto exchange license requires you to incorporate a Panamanian company with crypto trading listed as its activity. The application goes to the Ministry of Economy (and eventually the banking regulator), along with all standard documentation (plan, personal IDs, AML policies, etc.).
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Other virtual asset and blockchain models
Aside from pure trading platforms, Panama’s framework covers a broad range of virtual asset services. For example, if your business provides wallet or custody services, you use the same SFI license. Panama’s lenient approach even extends to newer models: DeFi protocols, decentralized exchanges (DEXs), NFT issuers, and token sales (ICOs/IEOs) can operate without special licenses, as long as they don’t accidentally become regulated securities. Industry advisors note that Panama has become popular for GameFi and crypto casino projects because its gaming and SFI regimes are permissive. In practice, as long as you register your activity honestly, virtually any blockchain business model can run under Panama’s general crypto license.
How to obtain a Panama crypto license
Registration process and government authorities
First, form a Panamanian legal entity. Most crypto businesses choose Sociedad Anónima (Panamanian corporation) under the SFI category. You will register this company with the Public Registry and obtain a commercial license from the Ministry of Commerce (often through an attorney or incorporation service). From day one, this entity is treated as a Specialized Financial Institution (SFI), focused on virtual assets. In practice, you work with the Ministry of Economy (MICI) to submit your license application. Throughout this process, expect to interface mainly with Panama’s financial regulator and the Ministry of Economy. You’ll pick a unique company name, draft articles of incorporation, and appoint your board of directors. Note that Panama does not force you to have Panamanian directors or offices — you can be 100% foreign-owned if you like. What is required is simply to set up an SFI entity and obtain the standard business licenses and registrations.
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Compliance and business operations
AML/KYC requirements and reporting
Panamanian law requires strict anti-money-laundering measures. In practice, you must identify every client (know-your-customer checks), monitor all transactions for red flags, and report any suspicious activity to regulators. This includes setting up customer onboarding procedures, ongoing transaction reviews, and employee training. For example, firms are expected to explain to clients the risks of cryptocurrency and to “collect information required by law on the nature of [clients’] activities.” Annual AML audits and compliance updates are standard practice. In short, treat your crypto exchange like a bank in terms of AML/CFT: robust KYC forms, daily monitoring of unusual trades, and ready disclosure to the Superintendencia de Bancos if needed. Following Panama’s AML rules is non-negotiable for license maintenance.
Banking, taxation, and corporate maintenance
Banking. Interestingly, getting a Panama bank account for a crypto company can be challenging. Local banks are often cautious with digital assets. Many licensed firms end up using US or European banks willing to handle crypto business. If you do open a Panamanian account, be prepared for extensive documentation and higher fees. However, Panama’s dollarized economy and financial sector offer stability once you’re set up.
Corporate maintenance. Beyond taxes, you must keep up with Panama’s basic corporate requirements. That means filing annual reports (often very simple since SFIs generally have no local business), paying a renewal fee, and maintaining a local registered agent. There’s no required office or local directors, so ongoing costs are relatively low. Make sure to update any regulator filings (e.g., changes in ownership) and file yearly financial statements if applicable. Following these rules keeps your license in good standing.
Start your crypto business in Panama
By obtaining a Panama crypto license, your project gains legitimacy and access to new markets while enjoying tax benefits and a crypto-supportive environment.
Get help securing your Panama crypto license
The process may be streamlined, but navigating a foreign jurisdiction can still be complex for a newcomer. That’s why many startups enlist local legal and compliance experts. Panamanian law firms and consultancy groups specialize in crypto licensing. They will handle entity formation, prepare all application documents, and liaise with regulators on your behalf. These advisors ensure every “i” is dotted — from precise license paperwork to setting up your AML programs. In an evolving field like crypto, their guidance is invaluable. In fact, industry specialists recommend ongoing legal counsel even after licensing, since Panama’s crypto regulations are dynamic and linked to global financial standards.
How can Icon.Partners help you?
One of the most reliable partners in this field is Icon.Partners. The company has extensive expertise in launching crypto projects in international jurisdictions, particularly in Panama. Icon.Partners will not only help you obtain a crypto license in Panama but will also accompany you every step of the way, from preparing documents and submitting applications to tax planning. Our team of lawyers specializes in cryptocurrency regulation, so you will receive a personalized approach to launching your crypto business rather than a template solution.
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5.0
"Their adept use of technology for communication and project management streamlined the entire process."
Thanks to Icon.Partners' efforts, the client was able to integrate with major platforms, such as Google, Facebook, and Stripe, and optimize their platform. The team was highly supportive and responsive from a workflow standpoint, and internal stakeholders were particularly impressed with the service provider's flexibility, professionalism, and technical prowess.
Oleksandr Platonov
CEO, VorfahrQR UG
Germany📍
Apr 10, 2024
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