Crypto License in Panama - How to obtain a Panama crypto license

To get a crypto license in Panama, you are required to register a Panamanian company with activities classified as SFI (Subject to Financial Intermediation). During the first three years, the company is under the supervision of the Ministry of Economy, after that it is taken over by the main regulator.

It is important to understand that, to date, there is no specific law regulating virtual currency in Panama. Nevertheless, the government has recognized the potential and opportunities that virtual currency and blockchain technologies offer. There are already examples of enterprises in the country that are successfully applying these technologies to their businesses.

For legal activities in the state, a business needs to be properly registered. Also, a cryptocurrency company must have sufficient capital to ensure the financial stability of its operations and be prepared for possible audits of financial statements within the requirements of the jurisdiction.

Obtaining a Panama crypto license allows entrepreneurs to reduce tax and regulatory costs, as well as operate in a flexible environment with minimal restrictions. Investors who plan to establish crypto companies in the country are not subject to any strict requirements or laws, unlike in other jurisdictions.

The main regulator of crypto activities is the National Commission of Financial Services of Panama (CNFS).

Advantages of getting a crypto license in Panama

In Panama, obtaining a cryptocurrency license provides several privileges that make the country an attractive place to set up cryptocurrency companies:

Regulatory benefits
Cryptocurrency activities are permitted and not subject to strict regulation, making it easy for entrepreneurs to do business without additional restrictions. This allows them to adapt to the rapidly changing cryptocurrency environment and offer innovative solutions.

Quick Registration
Starting a cryptocurrency company in Panama is a quick and easy process. With Fast Offshore Licenses, entrepreneurs can register their company in just 2-5 business days, which facilitates a quick business start.

Infrastructure development
The state has a well-developed infrastructure that provides easy access to financial services and advanced technology necessary to deal with cryptocurrencies. This creates favorable conditions for a successful business.

Preferential tax regime
The country has a favorable tax system, which can significantly reduce the tax burden on cryptocurrency companies. International Business Companies (IBCs) in Panama are not taxed on income generated from outside the country. Taxes only apply when a cryptocurrency company trades within Panama. In addition, cryptocurrency transactions are not subject to taxation, which creates additional benefits for businesses in this area.

No citizenship or residency requirements
There are no residency requirements for investors opening a company in Panama. In addition, there are no citizenship restrictions to establish a company, which provides flexibility and accessibility to international entrepreneurs.

Promising geographic location
Panama’s strategic geographic location makes it a convenient platform for international cryptocurrency transactions. It facilitates interaction with customers and partners from around the world.

The combination of all these factors makes Panama an attractive place to start a cryptocurrency company, providing entrepreneurs with the benefits of simplified registration, tax incentives, flexible regulation, and no residency or citizenship restrictions.

Request more info about the Crypto License in Panama

Incorporation requirements

To complete incorporation order form
To complete and sign “due-diligence” form by each shareholder and director
Scanned ID or Passport copy of the directors
Scanned ID or Passport copy of the shareholders
Address confirmation document or utility bill confirming the address of the directors and shareholders.

To comply with current due diligence regulations, the client shall commit to keeping the due diligence documentation updated every year, regardless of whether the company is active or not.

It is not necessary to come personally to Panama to incorporate a company.

Crypto License Registration in Panama packages

All services from the Basic package
Nominee service (3 directors)
Legal Opinion

All services from the Essential package
Assistance with corporate account opening

Dedicated consultant with the fully provided individual approach
Full turnkey company formation assistance
Company name of your choice
Apostilled set of corporate documents
Registration of the company as a Virtual Asset Service Provider
Standard AML/KYC Policy

Consultant

Inhyuk Suh

Phone +6531596549
Email i.suh@fastoffshorelicenses.com
Position
Associate, Consultant

Procedure for obtaining a Cryptocurrency License registration in Panama

Documents required:

Preferred company name
Incorporation form
Passport copies from all shareholders and directors
Utility bills from all shareholders and directors

COMPANY REGISTRATION and CRYPTO ACTIVITY AUTHORIZATION

Submission of notification to the Registry
Company registration
Preparation of corporate documents
Annual franchise tax payment

CORPORATE ACCOUNT OPENING

Analysis of the most suitable Banks/EMIs, comparison of the risk appetite of the Bank in relation to the risk appetite of the Client based on previously prepared AML policies
Collection of necessary documents from the Client side to initiate the process (flow of funds, source of wealth, description of the purpose of opening an account, key partners, company website, utility bill, etc.)
Guiding the Client’s company through the entire process of opening an account

Crypto regulation in Panama

Currently, there is no specific law regulating virtual currencies in Panama. However, the government recognizes the potential of virtual currency and blockchain technologies, and there are already examples of companies implementing these technologies in their operations.

The Panamanian government is actively following the development of virtual currency and blockchain technologies, and in 2018 it created a working group to study digital currency and its impact on the country’s financial system.

Bill No. 697, which regulates the use, trade, and taxation of cryptocurrencies, was approved by Panama’s National Congress during its first debate on April 21, 2022, but has not yet entered into force. This law includes provisions on cryptocurrency mining and sets standards for their use and exchange in the country.

These regulations will cover several key areas. First, there are plans to develop low tax rates for cryptocurrency transactions, in line with the country’s favorable tax policies. Second, there will be clear rules and requirements for obtaining a crypto license in Panama, information on which will be provided by the Finance Division. Anti-money laundering will also be an important aspect, where there will be measures in line with international standards. Finally, the Panamanian government will encourage the integration and promotion of new technologies, including cryptocurrencies, to attract foreign investment.

Bill No. 697 is currently under review. On June 17, 2022, President Cortizo partially vetoed the bill, due to the lack of anti-money laundering (AML) regulations. The government is expected to amend and bring it back for a vote. For now, the issue is on hold.

Crypto Taxation in Panama

Panama’s tax law provides one of the most favorable jurisdictions in the world for businesses and individuals. Corporate tax in the country has a very low rate of only 10%, and there are no taxes on dividends and capital gains.

In addition, there is no taxation for International Business Companies (IBCs) in Panama on income generated from outside the country.

Right now, cryptocurrency is not taxed. However, if the bill to regulate the crypto sector comes into force, the following rules may be added:

The taxation of cryptocurrency trading in Panama will be based on the principle of the territorial taxation system. In the case of cryptocurrency trading backed by real assets invested in the country, only a 4% capital gains tax will apply.
Taxes can be paid in cryptocurrency

FAQ about Panama Crypto License

Is cryptocurrency legal in Panama?

Cryptocurrency is legal in Panama but is not currently legal tender.

How much does a crypto license cost in Panama?

Opening an International Business Company (IBC) in Panama will cost 2500 € and more.

How to open a crypto company in Panama?

To open a crypto company in Panama, you need to choose a form of business, draw up a charter, register the company in the Public Registry, and open a bank account.

How to get a cryptocurrency license in Panama?

Currently, there is no special law regulating virtual currencies in Panama, which greatly facilitates and speeds up the process of registration of crypto business. To obtain a crypto license in Panama, you need to meet a few minimum requirements. You need to register a company in Panama, get a local legal address, prepare a minimal set of legal documents, and open a bank account.

OTHER CRYPTO LICENSES