Crypto license in Panama

Notes: The incorporation package of ~€3,675 is a one-time cost to get the company established and includes most of the setup essentials. If you handle bank account opening yourself, you can avoid the €4,185 fee, but many startups opt for professional help given the challenges for crypto companies. The nominee directors fee is yearly as long as you use that service. Annual costs (government tax and registered agent) sum to roughly €2,300–€2,500 in a typical year. These are in line with maintaining an offshore company in other jurisdictions, and notably there is no separate “crypto license fee” to pay to any regulator in Panama (since there is no license).

Beyond these, consider budget for things like web development, platform security, liquidity provision – those are business costs, not jurisdiction costs, but important for a crypto exchange’s success. Also, if you choose to establish a physical office or hire local staff in Panama, that would incur additional expenses (office rent, work permits for foreign staff, etc.). However, many Panama crypto companies are effectively remote operations with perhaps a virtual office, keeping local expenses minimal.

From a comparative standpoint, Panama’s costs are quite low. One analysis noted that incorporating a crypto company in Panama requires only a few thousand euros, whereas in some other jurisdictions initial packages can be double or more (and ongoing costs higher as well). For example, Costa Rica (another no-license jurisdiction) ends up more expensive due to various add-ons, and fully regulated jurisdictions like Switzerland or Singapore would have significantly higher legal and compliance expenses. Panama thus offers a cost-effective solution for startups that need to conserve capital.

Taxation of Crypto Businesses in Panama

Panama’s tax system is a major boon for crypto companies. Let’s break down the key features of the tax regime.

Territorial Corporate Tax

Panama taxes corporate income on a territorial basis. This means only income sourced within Panama is subject to corporate tax (the rate is 25% on net profits). Any income your company earns from outside Panama is not taxable in Panama. For a crypto exchange serving international users or a trading firm operating on global markets, virtually all revenue can be characterized as foreign-sourced and thus 0% taxed by Panama. You do still need to file an annual return, but you can report zero taxable income if all activities are abroad. If you do business in Panama itself (e.g., providing services to Panamanian residents or companies, or having local sales), that local income would be taxed at 25%. But most crypto ventures purposely keep their client base and operations international to leverage the exemption.

Capital Gains Tax

Capital gains in Panama are generally tax-exempt for occasional transactions. If your company is not in the regular business of trading securities, any gains from selling assets (including cryptocurrencies) are not taxed. Only if the gains are part of the regular business (i.e. frequent trading considered as trading income) would they be taxed at the normal 25% rate. For long-term investors or for a one-time sale of, say, a large Bitcoin position, there would be no separate capital gains tax. This is favorable for crypto investment funds or treasury holdings.

No Crypto-Specific Taxes

Panama has no special cryptocurrency taxes. There is no notion of taxing crypto transactions differently. Notably, cryptocurrency transactions are exempt from VAT/GST. In Panama, services are generally not subject to VAT (called ITBMS) if provided to clients outside Panama, and crypto trades themselves are not subject to any sales tax. Also, there’s no withholding tax on payments made in crypto by a Panama entity. This all means the operational tax burden is extremely low for a Panama crypto company.

Annual Franchise Tax

Instead of heavy taxes, Panama levies a modest annual franchise tax on all corporations (often referred to as the annual registration fee). Currently it’s around USD $300 per year (which corresponds to about €675 when paid via service providers including their surcharges). This is essentially a fixed government fee to keep the company in good standing. It’s usually due by June 30 each year for companies incorporated in the first half of the year (or by Dec 31 for those incorporated in the second half). As long as you pay this, even if your company earns millions abroad, you won’t owe Panama further corporate taxes.

Personal Taxes

If the owners or employees reside in Panama, their personal taxation would depend on their residency status. But for a foreign owner who doesn’t become a tax resident of Panama, there’s no personal tax levied by Panama on your earnings from the company. Panama does not tax dividends paid out of foreign-sourced income either – so if your Panama company distributes profits that were from crypto trading abroad, those dividends can be paid out tax-free (Panama only taxes dividends on local sourced income at 10%, and foreign-source dividends at 5% if the income was somehow tax-exempt; but pure foreign income is not even counted, so typically no dividend tax).

Crypto-Asset Reporting and International Compliance

Panama has joined international efforts for tax transparency. Notably, in 2025 Panama agreed to implement the OECD Crypto-Asset Reporting Framework (CARF). This means Panama will eventually collect and share information on crypto holdings and transactions of taxpayers with other jurisdictions (much like how it exchanges banking information under CRS). While this doesn’t impose a tax, it’s something to be aware of: if your owners or users are from countries that require tax reporting, Panama will cooperate. This move is part of Panama aligning with global standards and avoiding grey-listing by FATF/OECD. It does not affect the low tax rates, but it does mean Panama is not a place to hide assets from foreign tax obligations.

Types of Entities and Licenses in Panama

Panama does not differentiate between types of crypto licenses in the current regime – in fact, there is no official crypto licensing classification at all. Every crypto-related business operates simply as a normal Panamanian company (usually an S.A. corporation) with a standard commercial license. In other words, whether you run an exchange, a wallet service, a crypto fund, or an ICO project, you use the same form of legal entity and there isn’t a need (or option) to apply for a specialized license for each activity. The concept of Exchange License, Wallet License, etc., that exists in some countries is not codified in Panama at this time.

That said, for discussion purposes and internal planning, one can categorize the activities a Panama company might undertake. Some industry advisors describe the following conceptual license categories for Panama (anticipating what regulators might formalize in the future):

• Exchange operations – trading crypto for fiat or crypto-to-crypto (would correspond to an Exchange License elsewhere).
• Money transfer or payment services – facilitating client transfers or remittances (like a Payment/Transaction License concept).
• Custodial wallet services – safely storing digital assets on behalf of clients (analogous to a Wallet/Custody License idea).
• Token issuance platforms – launching ICOs/STOs or token sales (some refer to needing an ICO License for such activity).

Currently, all these activities are covered under the broad allowance of Panama’s unregulated environment. A single company could engage in several of them. There is no need to obtain separate permits – the notion of different “license types” is informal. The Panama Public Registry and commercial license documents won’t specify “crypto exchange” or “wallet provider” in a formal way; they will just have a generic commercial scope (often companies list objectives like “any lawful business, including digital asset services” in their articles of incorporation).

Importantly, Panama does have the concept of “financial institutions” and regulated financial services in other contexts. For example, banks, insurance companies, and money remitters need licenses in Panama. But cryptocurrencies currently fall outside those definitions. There is a category emerging called “Specialized Financial Institutions (SFIs)” under which some crypto businesses might register voluntarily or under proposed law. Under early interpretations of new rules, companies doing crypto exchange or wallet business might register as SFIs with the Intendencia (Non-Financial Entities regulator) or the Financial Analysis Unit. This isn’t exactly a license, but a form of recognition/registration to ensure compliance oversight. Indeed, Bill 247 (2025) aims to require VASPs (exchanges, wallets, etc.) to register with the Financial Analysis Unit (UAF), effectively introducing a single licensing regime for all crypto service providers. If that happens, Panama might still not issue multiple license classes – it would likely be one registration covering all virtual asset services, with perhaps different requirements depending on the service type (for instance, exchanges might have to meet certain security standards, custody providers might have certain insurance or technological requirements, etc.).

At present, we can summarize as follows: the only “license” you need in Panama is the general business license for your corporation. There is no separate crypto exchange license, no wallet provider license, and no token offering license issued by any Panamanian authority. All types of crypto businesses operate on the same legal footing. The differences in how you run an exchange vs. a wallet are a matter of internal policy and industry best practices, not law.

For completeness, note that if a Panama crypto company decided to engage in an activity that clearly falls under an existing regulated category (for example, offering fiat currency exchange services or money transmission to the public in Panama), then it might need a money service business license from the Ministry of Commerce. Similarly, if it offered investment advice or managed investments in a way that resembles securities business, it might trigger securities regulation. But pure crypto asset services have been treated as distinct and not regulated by those traditional frameworks. So a well-advised company will keep its activities within the crypto realm to avoid unintentionally becoming subject to a non-crypto license.

Ongoing Compliance and Maintenance Requirements for a Crypto License in Panama

After registering a crypto company in Panama, it is important not only to start activities, but also to regularly fulfill legislative requirements and observe international standards of doing business. Below are the main duties that will help the company remain in a proper legal status.

Annual maintenance of the company

Every company registered in Panama must have a local registered agent and a legal address. In addition, every year it is necessary to pay the state franchise fee — approximately 300 US dollars.

If you do not pay this fee on time or do not renew the services of the registered agent, the company may receive a fine, and later, be suspended or excluded from the state register. That is exactly why it is worth planning these payments in advance. Many legal companies offer comprehensive annual maintenance, which covers all necessary fees and administrative procedures (on average about 2,300 euros per year).

Accounting and financial reporting

For most international companies in Panama, an annual audit is not mandatory. However, keeping full accounting is still recommended, especially if the company carries out a significant volume of cryptocurrency operations.

Panamanian legislation requires that companies keep accounting documents and supporting materials, even if they are not submitted to state authorities. Also it is necessary to report where exactly this documentation is stored — in Panama or abroad.

Accounting records should be kept for at least five years. If the company receives income from sources in Panama, it must submit a tax return, and under certain conditions — also audited financial statements. Most crypto companies that work only with foreign clients submit a simplified tax return. At the same time, at the request of state authorities, the company must be ready to provide financial information, therefore documentation must be maintained in proper order.

AML/KYC program

Despite the fact that there is no separate law regulating the activity of crypto companies in Panama yet, the implementation of an effective AML/KYC system is actually a mandatory standard.

Such a system should include:

• verification of the identity of clients (KYC);
• monitoring of financial operations;
• keeping appropriate documentation;
• identification and reporting of suspicious transactions.

In practice, banks, payment partners, and counterparties expect that these procedures are already implemented. The company should develop an internal AML policy and train personnel to work in accordance with it.

Although currently the Financial Analysis Directorate of Panama (UAF) does not carry out separate supervision over crypto business, Law No. 23 of 2015 on the fight against money laundering can apply to certain types of financial activity.

To minimize risks, it is advisable to guide oneself by FATF recommendations: use modern systems of client identification, keep a full history of transactions, and be ready to submit necessary reports in case the corresponding obligation arises. Such an approach will also help to painlessly adapt to future regulation of the crypto market.

Reporting to state authorities

As of today, crypto companies in Panama are not obliged to regularly report to financial regulators, as happens in many other jurisdictions.

In addition, the company must submit an annual tax return, even if it did not receive income in Panama. If the company has employees in the country, it is also necessary to submit reporting regarding wages and social insurance.

In case of voluntary registration as a subject of financial activity or interaction with UAF, additional obligations may arise, in particular regarding reporting suspicious operations (STR).

Furthermore, if Panama introduces the international CARF standard for the exchange of information on crypto assets in the future, companies may be obliged to transfer certain data about clients and their operations to state authorities. Therefore, it is worth constantly monitoring changes in legislation.

Renewal of permits and registrations

Although a special crypto license that needs to be regularly renewed currently does not exist, the company must timely renew the validity of other necessary permits.

First of all, this concerns the commercial license for conducting activity, which is usually renewed by paying an annual fee or confirming data online.

If the company received additional permits — for example, for processing personal data or using office premises — they must also remain valid. For a local office, an obligation to pay municipal tax may arise, the amount of which depends on the income received on the territory of Panama.

It is most convenient to control these matters with the help of a local accountant or legal consultant.

Corporate governance

Maintain your company’s governance by holding an annual shareholders meeting (even if just on paper) and preparing annual meeting minutes as required by law. Keep your share register and director register updated (any changes in ownership or directorship should be formally documented and, for directors, filed in the Public Registry through a resolution). If you ever change your company’s Articles or capital structure, that needs to be filed. While these might sound tedious, they’re standard corporate housekeeping that your registered agent can usually assist with. Proper governance ensures that your company cannot be challenged as a sham and is respected by banks and courts.

Record-keeping

Retain all KYC records and transaction records for at least five years (a common standard). This includes copies of IDs, address proofs, all crypto transaction logs, withdrawal/deposit records, etc. In case of any audit or investigation, having these records will be crucial. Panama law now also requires companies to maintain a record of their beneficial owners with the registered agent (though not public), and updates must be given if ownership changes. So ensure you notify your agent if your ownership changes so they can update the beneficial owner registry maintained by regulators (as per Law 129 of 2020).

Follow changes in legislation

Legal regulation of cryptocurrencies in Panama continues to develop. Therefore, it is important for the company to regularly track legislative changes and new draft laws that can affect the order of conducting business.

If new rules or licensing procedures are introduced, it is necessary to timely adapt internal processes and fulfill all new requirements.

It is also worth maintaining constant contact with local lawyers and promptly responding to any requests from tax or other state authorities. Openness and timely provision of information often help to avoid significantly more serious problems.

Insurance and security

Not a legal requirement, but from a compliance perspective, consider insurance (for example, crime insurance or cybersecurity insurance) to protect client assets if you are custodying crypto. Also maintain strong cybersecurity practices, as any breaches could not only harm your business but also attract regulatory scrutiny if user funds are lost. While Panama doesn’t mandate specific security standards for exchanges, following international standards (like ISO/IEC 27001 for information security) voluntarily can be a good selling point and preventive measure.

Client dispute handling

Implement a complaint handling policy and perhaps an internal dispute resolution mechanism. Again, Panama won’t force this, but providing a way for users to resolve issues can prevent problems from escalating to lawsuits or regulatory complaints. It’s part of maintaining a good compliance culture and user trust.

Duration and Renewal Requirements for a Crypto License in Panama

Under current legislation, Panama does not issue a separate crypto license that needs to be regularly renewed. After company registration and the start of activity, the right to work in the field of cryptocurrencies is preserved indefinitely — provided that the company remains active and fulfills all corporate requirements. In other words, the so-called “Panamanian crypto license” actually has no expiration date, and no special procedure for its renewal or verification by state bodies currently exists.

However, this does not mean that administrative formalities can be forgotten. Every year the company must fulfill a number of mandatory requirements.

Annual corporate payments

The company must pay the state corporate fee (Franchise Tax) every year, as well as renew the contract with the registered agent. It is these payments that actually provide the further existence of the company. If they are not paid for a long time (usually about three years), the company can first be suspended, and later — excluded from the state register. Therefore, in practice, the “renewal” of a crypto business in Panama means the timely fulfillment of these annual financial obligations.

Update of the commercial license

The general commercial license (Aviso de Operación) may also provide for an annual administrative payment or confirmation of its validity through the state electronic portal. The procedure is usually simple, but it should be completed on time to avoid fines or other administrative consequences.

Possible transition to a new regulatory system

In the coming years, the situation may change. If Panama adopts new legislation regarding cryptocurrencies (for example, draft law No. 247 or its updated version), companies already operating on the market will most likely have to officially register as virtual asset service providers (VASP) and obtain the corresponding permit or license.

The new system may provide for regular confirmation of status, annual reporting, payment of state fees, or passing a license renewal procedure. If the licensing functions are received by the Financial Analysis Unit (UAF), companies may be obliged not only to pass the primary registration, but also to regularly confirm compliance with legislative requirements, in particular regarding KYC and AML procedures. The final rules will depend on the wording of the future law.

For now, since we operate in a license-free environment, the concept of renewal mostly ties to corporate renewal.

Here’s how you establish longevity

Keep corporate status active

Pay the annual dues and file any required annual returns (if any). There’s no separate expiry date on a Panama corporation as long as those are done. Unlike jurisdictions where a license might expire after one year if not renewed, a Panama company doesn’t expire; it only gets in trouble if it doesn’t meet its annual obligations.

Contract renewals

If you’ve engaged nominees or service providers (compliance consultants, etc.), remember to renew those contracts yearly. Nominee director agreements, for example, often are yearly arrangements tied to the fee. Not renewing could leave your company without directors (if they resign), which would be a problem. So ensure you renew service agreements vital to your structure.

Periodic review of compliance

It’s wise to treat compliance procedures as renewable in the sense that they should be reviewed and updated at least annually. For instance, update your risk assessment, refresh your KYC documents for high-risk clients, and test your security systems each year. This is not a legal renewal, but a self-imposed check to keep the business sharp and prepared for any regulatory evolution.

Grounds for Suspension or Revocation of a Crypto License in Panama

As of today, Panama does not have a special crypto license, so state authorities cannot cancel it the way it happens in countries with a licensing regime. At the same time, there are other mechanisms that can lead to the termination of a crypto company’s activities.

Suspension or liquidation of the company

If the company does not meet basic corporate requirements — for example, does not pay the annual state fee or does not maintain a valid contract with a registered agent — the State Registry can transfer it to “suspended” status. With prolonged inactivity, the company can be excluded from the registry and liquidated.

This is not a sanction specifically for the crypto business, but the consequence is the same: the company loses its legal status and can no longer legally conduct business. To resume work, it is usually necessary to pay all accumulated payments and fines.

Violation of legislation

If a crypto company participates in illegal activity, Panamanian authorities can apply enforcement measures to it regardless of the absence of a special license.

This concerns primarily:

• money laundering;
• fraud;
• illegal provision of financial services;
• other criminal or administrative offenses.

In such cases, criminal proceedings, court injunctions on conducting activities, fines, seizure of assets, or forced liquidation of the company are possible.

For example, if it is proven that the company deliberately contributed to money laundering or ignored the requirements of Law No. 23 on AML, state authorities can block its activities and hold the owners accountable, even despite the absence of separate crypto licensing.Reputational and banking risks

In practice, the activity of a company can be paralyzed even without state intervention. If, due to non-compliance with compliance requirements, a bank closes accounts or financial partners terminate cooperation, the company will effectively lose the ability to work normally.

Thus, the market independently performs part of the control functions that the regulator carries out in other countries.

What grounds may appear after the introduction of crypto regulation

After the entry into force of the new legislation, Panama will likely introduce official grounds for the suspension or cancellation of a VASP license. Given the provisions of draft law No. 247 and international practice, these may include:

• Non-compliance with AML/KYC requirements. Lack of proper customer identification, failure to report suspicious transactions, or failure to meet registration requirements can be a ground for suspension or cancellation of a Panama crypto license.
• Fraud or mismanagement. Engaging in deceptive practices, misusing customer assets, or any kind of fraud would certainly be grounds for a regulator to revoke a crypto license (once such exists). Protecting consumers and the integrity of the market would be key concerns.
• Insolvency or capital issues. If future rules set any capital or solvency requirements, failing to meet those (e.g., not having a required minimum reserve or insurance if that were part of the rules) could lead to suspension until rectified.
• Unauthorized activities. If a license (in future) is scoped for certain activities and the company goes beyond them (for example, operating a crypto derivatives exchange if the license only allows spot trading), that could be grounds for enforcement action.
• Security breaches and loss of funds. In some jurisdictions, significant security failures that lead to loss of client funds can result in a license being suspended (as regulators see it as not ensuring a safe operation). We can expect Panama to have provisions requiring safeguarding of assets; extreme negligence in that area might lead to license actions.

At present, the bottom line is: keep your company in good standing and follow the law. If you do so, there is no authority that will arbitrarily stop your crypto business. Panama’s light-touch regime means you don’t face routine examinations or the risk of a regulator pulling your crypto license in Panama on short notice. However, if you flout laws (like AML laws) or ignore corporate duties, Panama has mechanisms to punish or shut down any company (crypto or otherwise). And once the new crypto law is active, failing to obtain the required license or to comply with its terms could result in administrative sanctions or even criminal penalties for unlicensed activity.

To stay safe, a Panama crypto business should self-regulate as if a license could be revoked – i.e., operate to high standards. In doing so, you minimize the risk of any government intervention or business interruption.

Recent Updates: 2024–2026 Regulatory Developments

In 2024–2025, Panama is actively updating its approach to regulating cryptocurrencies. The authorities strive to find a balance between supporting innovation and introducing clear rules of the game, maintaining the country’s reputation as friendly to crypto business. Below are the main events and changes.

Supreme court overturned the previous crypto law (2023)

After President Laurentino Cortizo partially vetoed Bill No. 697, passed in 2022, the document was handed over for consideration to the Supreme Court.

In July 2023, the court recognized the bill as unconstitutional, supporting the position of the president. As a result, the entire proposed system of cryptocurrency regulation was canceled, and Panama effectively returned to the starting point in the formation of legislation.

This meant that at the end of 2023, a comprehensive law on cryptocurrencies, as before, did not exist in the country, and the market continued to operate on the principle of “everything that is not directly prohibited is allowed.”

New cryptocurrency bill (2025)

Having taken into account the mistakes of the previous attempt, in 2025, Panamanian lawmakers presented a new bill No. 247, initiated by Deputy Gabriel Silva Solís.

The document proposes to create a full-fledged legal framework for digital assets, strengthen the regulation of the crypto industry, and make Panama one of the leading fintech hubs in Latin America.

Special attention is paid to compliance with international standards for anti-money laundering (AML) and countering the financing of terrorism (CFT) to avoid the problems that led to the failure of the previous bill.

Main provisions of Bill No. 247

The bill provides for the official recognition of cryptocurrencies, in particular Bitcoin, Ethereum, and some stablecoins, as a legal method of payment for goods, services, and the fulfillment of financial obligations—on the condition that both parties agree to use cryptocurrency.

In fact, this means that digital assets can be used for settlements in almost any commercial operations without legal uncertainty.

Separately, it provides for the possibility to pay for state services, taxes, fees, and administrative payments with cryptocurrency, which will become an important step toward the mass use of digital assets.

Mandatory registration and licensing of VASPs

One of the most important changes will be the introduction of mandatory registration or licensing of virtual asset service providers (VASPs).

To this category belong:

• Crypto exchanges.
• Custodial crypto wallets.
• Brokers.
• Other cryptocurrency intermediaries.

Such companies must register with the Financial Analysis Unit of Panama (UAF), which is responsible for financial monitoring and AML control, as well as obtain an official permit for activity.

In fact, this means the end of the period when crypto businesses could operate without a special license.

Strengthening of KYC and AML requirements

The bill significantly strengthens the requirements for financial monitoring.

All VASPs must:

• Conduct customer identification procedures (KYC).
• Fulfill AML requirements.
• Control risky operations.
• Report suspicious transactions.

In case of violation, administrative fines are provided, and for serious violations—even criminal liability.

Thus, the crypto market of Panama will transition from almost complete freedom to a full-fledged system of state supervision in accordance with the 40 FATF recommendations.

Creation of the National Council for Digital Assets

The document also proposes to create a National Council for Digital Assets.

It is expected that this state body will:

• Coordinate cryptocurrency policy.
• Interact with regulators.
• Prepare new regulatory acts.
• Promote the development of blockchain technologies in the public and private sectors.

This indicates the desire of Panama not only to control the market but also to actively support the development of the industry.

Use of blockchain in the public sector

The bill covers not only the cryptocurrency business.

It also provides for the implementation of blockchain technologies in public administration, in particular for:

• Digital identification of citizens.
• Maintaining state registries.
• Tokenization of state assets.

In addition, it is proposed to officially recognize smart contracts as legally valid documents.

Such changes should modernize the digital infrastructure of the country and demonstrate that Panama views blockchain as a technology significantly broader than ordinary cryptocurrency payments.

Consumer protection and technical standards

Although details can still change, the bill also provides for:

• Increasing the transparency of crypto companies’ operations.
• Measures to protect client assets.
• Requirements for cybersecurity.
• Standards of operational reliability for VASPs.

In addition to this, the document must clarify the tax regime for digital assets, although the basic principle of territorial taxation of Panama will likely remain unchanged.

At what stage is the bill?

As of the end of 2025, Bill No. 247 has not yet entered into force.

It has already passed the first reading in the National Assembly of Panama, but two more readings lie ahead, after which the document must be signed by the president.

Compared to the previous attempt, support for the new bill is significantly higher. The president also demonstrates readiness to approve it on the condition of full compliance with international AML standards.

Before the final adoption, individual changes and refinements are possible.

While the law is not adopted, existing rules continue to act in the country, a cryptocurrency license is not yet required.

Panama City begins to accept cryptocurrency

In parallel with legislative changes, the capital of the country took an important practical step.

The city council of Panama City allowed the payment of municipal taxes, administrative fees, and fines using cryptocurrencies.

In 2025, the payment systems of the city were already preparing to accept Bitcoin and, likely, other digital assets.

Thus Panama City became one of the first local government bodies in Latin America that officially integrates cryptocurrency payments.

This not only expands the practical application of cryptocurrencies but also stimulates business to more actively accept digital assets as a means of settlement.

Alignment with international standards

The reform of crypto regulation is part of a broader strategy of Panama regarding the strengthening of financial transparency.

The country strives to leave the so-called “grey list” of the FATF, in which it is located due to risks related to money laundering.

In 2025, Panama also joined the international Crypto-Asset Reporting Framework (CARF) system, which is aimed at increasing the tax transparency of operations with digital assets.

The inclusion of FATF standards in Bill No. 247 must demonstrate to international partners that Panama is not a jurisdiction for dubious cryptocurrency operations.

For legal business this is a positive signal: improvement of the international reputation of the country will ease cooperation with banks and foreign partners, although it will mean stricter regulation.

When can the new rules start working?

If the bill is adopted at the end of 2025 or in 2026, a transition period is expected for already operating companies.

Usually business is granted from three to six months to:

• Go through registration.
• Obtain the necessary permits.
• Bring activity into compliance with the new requirements.

After the adoption of the law, additional regulatory acts and government decrees can be issued, which detail the procedure for obtaining licenses.

It is expected that the Financial Analysis Unit (UAF) and the Ministry of Commerce will publish official recommendations regarding the practical application of the new legislation.

It is likely that already in 2026 a full-fledged system of regulation of the cryptocurrency market will start working in Panama, within the framework of which companies must obtain a permit for activity and fulfill established regulatory requirements.

What should business do already now?

Companies that already operate in Panama or are only planning entry into this market should prepare for future changes in advance.

It is advisable already now to implement internal procedures that meet the requirements of Bill No. 247, in particular systems of KYC, AML control, and internal compliance. This will help to painlessly transition to the new rules after their introduction.

It is also worth carefully tracking the passage of the bill and consulting in advance with local legal advisors to be ready to obtain a license immediately after the launch of the new system of regulation.