Panama has become a preferred offshore jurisdiction for establishing crypto companies, thanks to its friendly regulatory framework and favorable business environment.
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Panama’s legal system offers a smooth setup with streamlined regulatory procedures, enabling cryptocurrency companies to function without requiring special licenses.
With no residency or nationality restrictions, you can incorporate and run your crypto business completely remotely while leveraging Panama’s favorable legal structure.
Foreign income isn’t taxed in Panama, which allows global cryptocurrency companies to expand and gives them more room to grow.
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:
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.
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.
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.
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.
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.
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.
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.
Panama has no minimum capital obligation for company incorporation, which makes it easier and more affordable for entrepreneurs to establish their crypto business.
The Panamanian government encourages technological innovation and entrepreneurship, creating a positive environment for the growth of the cryptocurrency sector.
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:
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.
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.
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:
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.
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).
A local registered agent is required by law, and we can provide this service to your company in Panama.
We will help you draft and file the company’s Articles of Incorporation (or Articles of Association) with the Panamanian authorities.
The corporation must be renewed annually, which includes updating director information and paying renewal fees. We handle all aspects of this process.
We’ve simplified the process of setting up your crypto entity in Panama. Here’s how it works:
We collect all necessary documentation from you, including details of shareholders, directors, and ultimate beneficial owners.
We will check the availability of your chosen company name and register it with the Panamanian authorities.
We will appoint all three directors, which can include your directors and directors from our side.
We draft and submit the Articles of Incorporation to the Panamanian government. These articles define your company’s scope, including crypto-related activities.
Once the documents are submitted and approved by the relevant government agencies, your company will be officially registered within 5 to 7 business days.
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:
We handle the yearly renewal process, ensuring your business remains in good standing.
Even though crypto activities are unregulated, we provide ongoing support to ensure compliance with broader corporate regulations.
We assist with the issuance of corporate documents like certificates of incumbency and shareholder agreements.
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:
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.
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.
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.
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:
| 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 |
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.
We provide free initial consultations and tailored structure advice based on your roadmap.
Get Help Get HelpOur 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.
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.
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.
No, the jurisdiction offers a 0% corporate tax rate for businesses operating outside of Panama, making it a tax-efficient jurisdiction for international operations.
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.
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.
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.
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.
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.
Yes, issuing, distributing, selling, and promoting tokens in and from Panama is entirely legal.
No, the entire process can be completed remotely. Our team manages all legal and administrative steps on your behalf.
No, Panama does not have a minimum capital requirement for company incorporation, which makes it an attractive option for entrepreneurs.
Yes, our team assists with opening a corporate account to facilitate your business operations.
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