Crypto License in Panama

Why Panama has Become Popular for Crypto Projects?

No Strict Crypto Regulations

One of Panama’s biggest draws is that crypto activities are legal and largely unregulated by specific crypto laws. There is no Virtual Asset Service Provider (VASP) licensing regime in place, so activities like token issuance, crypto trading, exchanges, and promotion can be conducted without needing a special financial license or regulatory approval.

Strong Privacy and Confidentiality for Owners

When you set up a Panamanian company, the names of directors are filed publicly, but shareholders and ultimate beneficial owners (UBOs) remain confidential in practice.

Panama’s corporate laws allow the use of nominee directors and provide that the true owners’ details are kept on a private register (accessible only to authorities if needed), not on public record. This means you can maintain anonymity as a UBO, insulating your personal identity from public view while still complying with the law.

0% Tax on Foreign-Sourced Crypto Income

Panama uses a territorial tax system, meaning income earned outside of Panama is not subject to Panamanian tax. In practice, this translates to a 0% corporate tax rate on foreign-sourced revenue, including profits from cryptocurrency trading or services provided to clients overseas. Crypto exchanges or platforms that have global users can book their income as foreign-sourced and pay no corporate income tax in Panama.

No AML/KYC Requirements

Because crypto companies are not yet formally regulated as financial entities in Panama, the government does not currently impose specific AML/KYC program requirements on crypto exchanges or wallet providers. In other words, there are no Panama government-mandated KYC or AML protocols that crypto startups must implement by law, giving you freedom in how you onboard customers and monitor transactions.

Fast and Easy Company Incorporation

Incorporation procedures are efficient and can be completed in a matter of days – often as fast as one week for basic company formation.

The requirements to register a company are minimal: there are no residency or nationality restrictions on who can be a shareholder or director, so founders from anywhere in the world can incorporate with equal access. Panama allows 100% foreign ownership and directorship with no local citizenship needed.

Not subject to EU MiCA

Panama is outside the EU, so MiCA doesn’t apply by default. You can operate globally from a Panama base and adapt to foreign rules only where you actively market.

No Minimum Capital Requirement

No statutory paid-in minimum. You can incorporate with a token amount (even $0.01 and one share). Market practice is to authorise $10,000 nominal share capital for filing convenience; it does not need to be paid in.

Requirements in Panama

Minimum of Three Directors

A corporation (S.A.) is the most common structure for crypto companies, requiring at least three directors. These directors can be individuals or legal entities, and we offer directors services if needed.

AdamSmith provides

• Director appointment documents and board registers
• Nominee directors if needed (with proper KYC)

Registered Office

You’ll need a registered office in Panama, which we can provide as part of our services (this service is the same as company’s legal address).

AdamSmith provides

• Registered office service and annual maintenance
• Address details for website disclosures

Registered Agent

A local registered agent is required by law. The agent is your official interface with authorities. We can provide this service to your company in Panama.

AdamSmith provides

• Registered agent service and official filings
• Document retention and corporate secretarial support

Articles of Incorporation

We will help you draft and file the company’s Articles of Incorporation (or Articles of Association) with the Panamanian authorities.

AdamSmith provides

• Drafting and filing of Articles/Bylaws and corporate resolutions
• Apostilled copies for international use

Annual Renewal

The corporation must be renewed annually, which includes updating director information and paying renewal fees. We handle all aspects of this process.

AdamSmith provides

• Renewal filings and payment of official renewal fees
• Annual compliance update and training plan

Company Structure in Panama: Corporation vs. Foundation

When establishing a presence in Panama for a crypto venture, the two primary legal structures are the Corporation (Sociedad Anónima or S.A.) and the Private Interest Foundation (Fundación de Interés Privado). While both offer significant advantages like tax efficiency and privacy, they are fundamentally different tools designed for distinct purposes.

Choosing the right one is crucial for your operational success and legal security. A Corporation is built for active business, while a Foundation is designed for asset protection and governance.

Corporation vs. Foundation: Key Differences

Crypto-Specific Use Cases

Use a Corporation if you need to:

• Operate a crypto exchange, DeFi aggregator, or launchpad
• Provide blockchain consulting or development services
• Sign contracts with service providers or exchanges
• Issue invoices and receive fiat/crypto payments

Use a Foundation if you need to:

• Hold token reserves or LP tokens from a protocol
• Act as the legal wrapper for a DAO
• Serve as a neutral custodian for smart contract admin keys
• Structure ownership of a metaverse asset or NFT vault
• Set up succession or continuity planning for your crypto assets

Many clients choose to combine a Corporation and a Foundation:

• The Corporation operates the business (trading, invoicing, payroll)
• The Foundation safeguards assets or oversees governance (token supply, keys, DAO funds)

This setup keeps liability separate, enhances long-term control, and helps with jurisdictional risk diversification.