No. Panama does not issue a standalone VASP or crypto license. Instead, crypto businesses operate through a registered Panamanian corporation (typically a Sociedad Anónima) combined with AML/CFT compliance under Law 23 of 2015. This approach is often referred to as a “crypto license” for simplicity, but it is technically corporate registration with regulated compliance obligations.
Basic company incorporation starts from EUR 4,500 with Fintech Simple. A standard package with apostilled documents and legal opinion costs EUR 6,000. A premium package with bank account assistance costs EUR 10,000. Annual maintenance (registered agent, government fees) runs $300–$1,500 per year. There is no minimum capital requirement under Panamanian law, though banks may expect $10,000–$50,000 on deposit for account opening.
Company incorporation takes 1–2 weeks after documents are submitted. AML/KYC policy setup runs in parallel (1 week). Bank or EMI account onboarding adds 2–4 weeks. Total timeline: 3–6 weeks from start to operational readiness.
Panama uses a territorial tax system — only income sourced within Panama is taxed (at 25% corporate rate). Foreign-sourced crypto income is not taxed. There is no capital gains tax on cryptocurrency, no VAT on crypto transactions, and no dividend tax on crypto-related distributions from foreign operations.
A Panamanian crypto company can legally operate crypto exchanges (fiat-to-crypto and crypto-to-crypto), custodial and non-custodial wallet services, token issuance (ICO/IEO/IDO), crypto payment processing, DeFi protocols, GameFi platforms, NFT marketplaces, OTC trading desks, and crypto advisory services — all without a specific financial license from a regulator.
No. The entire incorporation process can be completed remotely. Directors do not need to be Panama residents. You must appoint a licensed registered agent in Panama, but no physical office or local staff is required. Most crypto businesses in Panama operate entirely remotely.
Law 23 of 2015 is Panama’s general AML/CFT framework — it is not crypto-specific, but crypto businesses fall under its scope as obligated subjects when they handle client assets or facilitate financial transactions. Banks and partners expect you to implement internal AML/KYC policies, transaction monitoring, and suspicious activity reporting to the UAF.
Yes. Issuing, distributing, selling, and promoting tokens from Panama is legal. There is no dedicated securities regulation for crypto tokens, though tokens that resemble traditional securities may attract scrutiny from the Superintendencia del Mercado de Valores (SMV).
Yes, though local banks are cautious with crypto companies. Fintech Simple assists with bank account opening as part of our Premium package. Many crypto businesses also use international EMI providers such as Payoneer or Mercury, or European fintech platforms for payment processing and settlements.
Panama offers faster setup (3–6 weeks vs. 4–9 months for MiCA), lower costs (from €4,500 vs. €200,000+), no minimum capital, and 0% tax on foreign income. However, a MiCA license provides EU-wide passporting across 27 countries and higher regulatory credibility. Many businesses use Panama for global operations while separately pursuing MiCA for EU market access.
Panama provides strong privacy for Ultimate Beneficial Owners. Shareholder names are not publicly disclosed — only the names of the three directors appear in the Public Registry. You can also appoint representative or professional directors for additional privacy. UBO information is held by the registered agent under Law 129 of 2020 and is only disclosed to authorities upon formal legal request.
Companies must maintain updated corporate records, keep a registered agent, pay annual government fees ($250–$300), prepare financial statements, follow AML/KYC procedures, report suspicious activities to the UAF, review and update internal compliance policies regularly, and maintain transaction records for at least 5 years.
A Specialized Financial Institution (SFI) is a regulated entity category supervised by the Superintendencia de Bancos de Panamá (SBP). Some crypto exchanges register as SFIs, which provides a higher level of regulatory recognition — particularly useful for banking onboarding and institutional partnerships. The SFI route involves additional capital and compliance requirements compared to a standard S.A. structure. We advise clients on whether an SFI registration makes sense for their business model.
A Sociedad Anónima (S.A.) is the standard corporate structure — it has shareholders, directors, and flexible governance, making it ideal for active crypto operations. A Private Interest Foundation has no shareholders — it has a founder, council, and beneficiaries. Foundations are used for asset protection, holding token treasuries, and DAO-like governance but cannot be used for active commercial operations. Many crypto businesses use a dual structure: S.A. for operations + Foundation for holding assets.
No. Every company conducting commercial activities in Panama must obtain an Aviso de Operación (commercial license) from MICI. This applies to all businesses, including crypto companies. The Licencia Comercial confirms the company’s right to operate commercially in Panama and is required before you can open a bank account or onboard with EMI providers. The process is straightforward and typically takes 3–5 business days — we handle it as part of all our packages.
