Panama Crypto Regulations 2026

SECTION 1 — Current Legal Status Panama does not currently have a specific cryptocurrency licensing law. Crypto companies operate under general commercial law (Law 32 of 1927 on Sociedad Anónima) and are subject to general AML obligations under Law 23 of 2015 (on the prevention of money laundering). This means: no mandatory crypto license, no mandatory registration with a financial regulator, and no specific crypto compliance framework — beyond standard AML/CFT requirements.

SECTION 2 — Legislative History (What Has Been Attempted) Several crypto bills have been introduced in Panama’s National Assembly but have not been enacted: – Bill 697 (2021): Passed the Assembly but was vetoed by President Cortizo in 2022. Would have established a crypto licensing framework and recognized Bitcoin as legal tender. – Bill 247 (2022): A revised version — stalled in committee. – New proposals (2023–2025): Various legislative attempts have been made but none have advanced to final approval as of mid-2026. IMPORTANT: The current regulatory environment may change. We monitor Panamanian legislation actively and update this page accordingly. Clients are advised to act during the current accessible window.

SECTION 3 — Tax Regime Panama operates on a strict territorial tax system: – Income generated OUTSIDE Panama: 0% income tax – Income generated INSIDE Panama: standard 25% corporate tax – Capital gains on foreign assets: 0% – VAT (ITBMS): 7% — applies to local services only – No wealth tax, no inheritance tax on foreign assets For crypto companies serving international clients: effective tax rate is typically 0% on trading profits, exchange revenues, and management fees earned abroad.

SECTION 4 — AML/CFT Obligations Despite the absence of a specific crypto law, crypto businesses in Panama must: – Register with the UAF (Financial Analysis Unit) as reporting entities if they qualify as financial intermediaries – Implement KYC procedures for clients – Maintain transaction records for 5 years – Report suspicious transactions to the UAF Our compliance package covers all of these obligations.

SECTION 5 — Panama & FATF Panama was removed from the FATF Grey List in June 2023. It was further removed from the EU’s list of high-risk third countries in July 2025 — a significant positive development for businesses seeking banking relationships.

[Page updated: June 2026. We update this page regularly as the regulatory landscape evolves.]