Crypto license in Panama

Panama offers several license types for crypto businesses. These include cryptocurrency exchange licenses for trading services, transaction service licenses for processing crypto payments, wallet licenses for secure asset storage, and ICO licenses for token issuances. Each license type has specific compliance standards and operational requirements.

Any business conducting crypto-related activities in or from Panama needs a license. This includes exchanges, wallet providers, ICO or token sale projects, NFT platforms, crypto payment processors, and web3 companies. Unlicensed operation is not permitted for regulated activities.

First, you register a legal entity as a Specialized Financial Institution (SFI) in Panama. Then you appoint directors, open a corporate bank account, prepare and file compliance documents (including AML/KYC policies), and publish required disclosures on your website. After submitting your application and supporting documents, you wait for regulatory approval.

No, there are no residency or citizenship requirements for shareholders, founders, or directors. Both locals and foreigners can fully own, operate, and direct a crypto company in Panama.

Setting up a company can be done in as little as one week for basic needs. For a full operational launch with all infrastructure, it typically takes from two to six weeks, depending on business complexity and package selected.

License holders must maintain ongoing AML (anti-money laundering) and KYC (know your customer) procedures. This includes monitoring all transactions, regular internal audits, risk assessments, and timely reporting to regulators about suspicious activities. Transparency and updated information on the company’s website is also required.

Panama uses a territorial tax system. Only income earned from local sources is taxed at 25%. Offshore income, crypto capital gains, and dividends from crypto activities are all tax-exempt. VAT does not apply to crypto transactions.