Crypto License in Panama

Panama has become a preferred offshore jurisdiction for establishing crypto companies, thanks to its friendly regulatory framework and favorable business environment.

Register your crypto company in Panama for €4,500 up to 2 weeks.

Start the process of obtaining a crypto license in Panama today.

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Flexible Regulated Environment

Panama’s legal system offers a smooth setup with streamlined regulatory procedures, enabling cryptocurrency companies to function without requiring special licenses.

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Global Access

With no residency or nationality restrictions, you can incorporate and run your crypto business completely remotely while leveraging Panama’s favorable legal structure.

Tax-Friendly Jurisdiction

Foreign income isn’t taxed in Panama, which allows global cryptocurrency companies to expand and gives them more room to grow.

Why Choose Panama for Crypto Business?

Panama provides a straightforward and flexible method of company formation, in contrast to many other jurisdictions that impose complex regulatory frameworks on crypto businesses. This allows companies to operate with minimal oversight, avoiding lengthy approval processes and high compliance costs. At Adam Smith, we specialize in helping crypto entrepreneurs navigate Panama's favorable legal landscape to set up their business quickly and efficiently. Panama stands out as a crypto-friendly country with several key benefits:
Unregulated Legal Crypto Activities:

There is no Virtual Asset Services Provider (VASP) regime in Panama, and crypto activities like token issuance, trading, and promotion are completely legal. You can freely operate without the need for financial licenses or regulatory approvals.

Privacy policy:

Panama ensures privacy for the ultimate beneficial owners (UBOs) of companies. While the names of directors must be listed in public records, shareholders and UBOs remain confidential. We also offer nominee services to further protect your privacy.

0% Corporate Tax Rate:

Panama applies no taxes on income earned outside the country. This makes it an attractive destination for global businesses looking to optimize their tax strategy.

No AML/KYC Requirements:

The government does not impose AML or KYC requirements for crypto businesses, allowing you to operate freely. However, we strongly recommend compliance with the laws of the countries you serve.

Ease of Setup:

Incorporating a company in Panama is straightforward and can be completed in a matter of days. There are no nationality or residency restrictions for directors or shareholders, making Panama an accessible option for international entrepreneurs.

No Strict MiCA Regulation

Panama’s regulatory independence ensures your crypto business is not affected by the EU’s MiCA regulations. This provides enhanced operational flexibility and significant savings on compliance costs.

Global Trade Gateway

Panama is a center for global trade and commerce due to its location at the meeting point of North and South America. It is the perfect starting point for cryptocurrency business because of its advantageous location, which provides quick access to international markets.

No Capital Requirements

Panama has no minimum capital obligation for company incorporation, which makes it easier and more affordable for entrepreneurs to establish their crypto business.

Innovation-friendly environment

The Panamanian government encourages technological innovation and entrepreneurship, creating a positive environment for the growth of the cryptocurrency sector.

Regulatory Landscape: Why Panama is a Safe Bet for Crypto

Panama offers one of the most crypto-friendly legal environments in the Western Hemisphere — and here's why that matters for your business. Unlike many jurisdictions where crypto activity falls into grey zones or gets tangled in licensing requirements, Panama takes a different approach: Crypto is unregulated — but legal. That means you can issue, trade, mint, airdrop, and promote tokens without needing a crypto license, and without interference from financial regulators. Whether you’re launching a DeFi protocol, running a token sale, or simply managing crypto assets, Panama gives you breathing room. Key Takeaways:

There’s no Virtual Asset Services Provider (VASP) regime in place.

Crypto assets are not considered securities or legal tender — they’re treated like private assets.

You do not need a financial or investment license to operate a crypto company.

Panama’s top financial authorities — the Superintendency of Securities Market (SMV) and the Superintendency of Banks (SBP) — have made it clear they do not oversee crypto.

Activities like running an exchange (spot or derivatives), issuing tokens, or managing Web3 platforms are 100% legal, even though they remain outside regulatory scope.

 
What This Means for You

Panama is ideal if you’re looking for:

  • Regulatory flexibility to move fast and innovate.
  • A clean structure to manage token issuance or fundraising.
  • A location where crypto is not banned, taxed, or limited.

You can launch your crypto project here without delays, licenses, or red tape.
Of course, being unregulated doesn’t mean you shouldn’t act responsibly — we help our clients establish internal AML policies and professional structures to keep everything compliant with global best practices.

Our Crypto Company Formation Packages



At Adam Smith, we understand that every crypto business has unique needs and goals. That’s why we offer three distinct packages designed to cater to different stages of your entrepreneurial journey in Panama.
  • Essential Package Ideal for businesses looking to establish themselves quickly and efficiently.
    4 500
    • Incorporation of your company in Panama;
    • Registered legal address in Panama;
    • Payment of all state fees.
  • Standard Package For businesses that want added assurance and compliance measures.
    6 000
    • Everything in the Essential Package;
    • Apostilled company documents for international use;
    • Legal opinion on your crypto activities to ensure compliance.
  • Premium Package Designed for companies that desire comprehensive support with additional services.
    10 000
    • Everything in the Standard Package;
    • Assistance with bank account opening to facilitate your business operations.

Requirements in Panama

Company incorporation in Panama is simple and streamlined. With a business-friendly regulatory environment and clear guidelines, the setup process is designed to minimize complexity and time consumption. Whether you're expanding globally or launching a new venture, Panama makes it easy to establish your crypto entity. The primary requirements are:
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.

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).

Registered Agent:

A local registered agent is required by law, and we can provide this service to your company in Panama.

Articles of Incorporation:

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

Annual Renewal:

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

Process for Setting Up a Crypto Company

We’ve simplified the process of setting up your crypto entity in Panama. Here’s how it works:
KYC and Initial Documentation:

We collect all necessary documentation from you, including details of shareholders, directors, and ultimate beneficial owners.

Name Registration:

We will check the availability of your chosen company name and register it with the Panamanian authorities.

Director Appointments:

We will appoint all three directors, which can include your directors and directors from our side.

Articles of Incorporation (AoI):

We draft and submit the Articles of Incorporation to the Panamanian government. These articles define your company’s scope, including crypto-related activities.

Final Submission and Approval:

Once the documents are submitted and approved by the relevant government agencies, your company will be officially registered within 5 to 7 business days.

Post-Incorporation Support

After your company is incorporated in Panama, we continue to support you with a range of services designed to keep your business compliant and operational. Our assistance includes:
Annual Renewal Assistance:

We handle the yearly renewal process, ensuring your business remains in good standing.

Accounting and Compliance Support:

Even though crypto activities are unregulated, we provide ongoing support to ensure compliance with broader corporate regulations.

Document Management:

We assist with the issuance of corporate documents like certificates of incumbency and shareholder agreements.

Comparison with Other Jurisdictions

With no specific regulations targeting cryptocurrencies, crypto assets, or tokens, Panama offers a unique opportunity for crypto entrepreneurs to operate legally and with minimal governmental oversight. Whether you're looking to launch a token, trade crypto assets, or run a crypto-related business, Panama’s legal landscape provides the freedom to grow without the heavy compliance burdens seen in other jurisdictions. Compared to other crypto-friendly jurisdictions, Panama stands out due to its unregulated environment and confidentiality advantages. Here's how Panama compares:
Panama vs. EU

In the EU, companies must comply with the MiCA framework, which involves stringent reporting and regulatory requirements. In Panama, no such framework exists, offering greater operational freedom.

Panama vs. SVG

Like Saint Vincent and the Grenadines, Panama offers a high degree of freedom for crypto activities. However, Panama’s more developed infrastructure and strong privacy laws make it a preferred choice for those seeking higher confidentiality.

Panama vs. Cayman Islands

While both jurisdictions offer privacy and tax advantages, Panama’s legal environment is simpler and more affordable for starting a crypto business without the need for licenses or heavy compliance.

At Adam Smith Law Office, our team consists solely of experienced professionals with higher education. When you engage with us, you can be confident in receiving high-quality and qualified services.

Company Structure in Panama: Corporation vs. Foundation

When registering a crypto company in Panama, two of the most commonly used legal entities are the Panama Corporation (Sociedad Anónima) and the Private Interest Foundation. While both offer strong privacy protection and are easy to establish, they serve very different legal and operational purposes, especially in the context of digital assets and blockchain ventures.

A Panama Corporation (S.A.) is ideal for active business operations. It can issue invoices, enter into contracts, hire employees, hold bank accounts, and act as the legal face of a crypto exchange, consulting firm, trading desk, or NFT marketplace. It operates like any traditional commercial company but benefits from Panama’s territorial tax system and zero reporting requirements for foreign-source income.

On the other hand, a Private Interest Foundation is not meant for commercial activities. Instead, it is commonly used in the crypto world to hold token reserves, act as a DAO wrapper, or control key governance functions of a decentralized protocol. It is particularly popular for asset protection and continuity planning, since it does not have owners or shareholders — only a founder and a Foundation Council — making it suitable for storing digital assets, managing treasury functions, or holding intellectual property (like smart contract rights).

Here’s a breakdown to help you understand the difference:

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Feature Panama Corporation (S.A.) Panama Private Interest Foundation
Purpose Commercial/business activities Asset protection, token treasury, holding structure
Legal Personality Yes Yes
Ownership Shareholders No owners — only a founder and council
Management Board of directors (3 persons) Foundation Council (at least 3 members or a corporate council)
Activity Scope Can trade, issue invoices, open accounts Cannot engage in commercial activity directly
Bank Account Eligibility Yes Yes (for asset holding or treasury purposes)
Privacy High – no public register of shareholders or directors Extremely high – no public ownership, no shareholders
Use Cases Exchanges, crypto platforms, consulting, NFTs, DeFi apps Token issuance, DAO treasury, smart contract governance, succession planning
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
Combine Both for Maximum Flexibility

Many clients choose to combine a Corporation and a Foundation:

A. The Corporation operates the business (trading, invoicing, payroll)
B. 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.

Need help choosing the right setup?

We provide free initial consultations and tailored structure advice based on your roadmap.

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Meet Our Expert Team

Our legal, compliance, and technical experts specialize in Panama’s regulatory landscape, international AML standards, and offshore company formation. Panama’s flexible approach to crypto is an opportunity — and our professional team helps you make the most of it.

Dmitry M. Head of Sales Department Contact
Mark M. Sales Representative Contact
Frequently Asked Questions (FAQ)
Is there any specific crypto regulation in Panama?
No, Panama does not have a specific Crypto Asset Services Provider regime or regulation that covers cryptocurrencies or crypto-related activities. However, virtual-related activities such as trading, issuing, or promoting tokens are unregulated but legal.
What kind of business activities can I carry out with a VASP company in Panama?
You can engage in a wide range of crypto activities, including issuing, trading, mining, and selling crypto assets. You can also operate crypto exchanges or platforms offering derivative trading with no need for financial or investment licenses from regulators.
Will my crypto business be taxed?
No, the jurisdiction offers a 0% corporate tax rate for businesses operating outside of Panama, making it a tax-efficient jurisdiction for international operations.
Are there any privacy protections for Ultimate Beneficial Owners (UBOs)?
Yes, it provides strong privacy for UBOs. The names of shareholders are not publicly disclosed, only the names of the three directors are available in public records. You can also appoint representative or professional directors to maintain additional privacy.
What are the requirements for setting up a CASP company incorporation?
You need a minimum of three directors for your legal entity, but they do not need to be residents of Panama. Additionally, you need to incorporate the company and appoint a registered office.
Do I need to comply with AML/KYC laws in Panama?
There are no specific AML/KYC requirements imposed by the government of Panama for crypto activities. However, it is recommended to have internal AML/KYC policies to comply with the regulations of the countries where you operate.
What are the options for appointing directors?
You can appoint non-signatory representative directors (for privacy), signatory professional directors (who can sign on company’s behalf), or individually searched directors (who take care of all the processes). The fees for these options vary based on responsibilities.
How long does it take to register a crypto company?
The registration process usually takes around 5-7 business days once all the required documents are submitted. However, the timeframes may be longer due to reasons related to government agencies.
Is it legal to issue tokens from Panama?
Yes, issuing, distributing, selling, and promoting tokens in and from Panama is entirely legal.
Do I need to visit Panama to open a crypto company?
No, the entire process can be completed remotely. Our team manages all legal and administrative steps on your behalf.
Is there a minimum capital requirement to incorporate a crypto company in Panama?
No, Panama does not have a minimum capital requirement for company incorporation, which makes it an attractive option for entrepreneurs.
Is it possible to open a bank account for the company?
Yes, our team assists with opening a corporate account to facilitate your business operations.
Contact Us: Start Your Crypto Business in Panama Today!

Looking to establish your crypto company in Panama? Leave a request for a free consultation, and we'll guide you through the process efficiently and hassle-free. Panama offers an excellent environment for crypto businesses, and we're here to help you make the most of it.

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