Preferred non-regulated jurisdiction for crypto business
Crypto License in Panama -Company Setup, Compliance & Banking Roadmap
Panama is increasingly considered by crypto founders seeking flexible structuring, international operations, and practical banking strategies. While Panama does not currently operate a classic “VASP license” regime like some offshore or EU jurisdictions, crypto businesses can still establish legally compliant structures when properly aligned with local laws, AML obligations, and banking expectations.
This page explains how crypto businesses operate from Panama, what regulatory considerations apply, and how Consultrio structures Panama-based crypto companies to ensure compliance, banking feasibility, and scalability.
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Does Panama Issue a Crypto or VASP License?
Panama does not currently issue a dedicated crypto or VASP license similar to regimes in Seychelles, Cayman Islands, or Dubai.
However, this does not mean crypto activity is prohibited.
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Crypto businesses operate under general commercial and financial laws
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Compliance is driven by AML/CFT obligations, risk controls, and banking requirements
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The regulatory focus is primarily on how funds are handled, not the technology itself
This makes Panama suitable for specific crypto business models, when structured correctly.
Pros
Why Choose Panama for a Crypto Business?
1. Business-Friendly Legal Environment
Panama offers a flexible and business-oriented legal framework that supports international crypto and Web3 structures when set up correctly.
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Straightforward and fast company incorporation process
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Flexible corporate governance with minimal formalities
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Ability to appoint foreign directors and shareholders
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No public disclosure of shareholders when structured properly
2. Territorial Tax System
Panama operates a territorial tax regime that can be attractive for crypto businesses with international operations.
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Income sourced outside Panama is generally not subject to local corporate tax
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Foreign clients and offshore activities can be structured efficiently
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No withholding tax on foreign-sourced income in most cases
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Commonly used for international and cross-border business models
3. Strategic Structuring Jurisdiction
Panama is frequently used as a strategic component within multi-jurisdiction crypto and fintech group structures.
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Suitable as a core operating or holding company
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Often combined with licensed VASP jurisdictions
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Used for technology, development, or operational hubs
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Supports group-level governance and coordination functions
Banking & Compliance-Driven Setup
While Panama does not operate a dedicated crypto licensing regime, banking and compliance expectations play a central role in determining whether a crypto structure is viable.
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Banking feasibility depends on business model and risk profile
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Clear source of funds and transaction flow explanations required
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AML/CFT policies aligned with international standards expected
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Proper structuring is essential for account opening success
Crypto software and platform development
Panama can be used to structure companies focused on developing crypto software, platforms, and infrastructure without directly handling client funds.
Non-custodial exchanges or protocols
Non-custodial exchange or protocol models may be structured in Panama where the entity does not hold client assets or control private keys.
Token project development and ecosystem operations
Token projects can use Panama for development, ecosystem management, and non-financial operational functions when structured appropriately.
OTC brokerage and proprietary trading (structure-dependent)
Panama may support OTC brokerage or proprietary trading activities depending on trade execution, settlement mechanics, and counterparty exposure.
Requirements for Obtaining a Crypto License in Panama
Crypto businesses operating from Panama must be properly incorporated and structured in line with Panamanian corporate law and international compliance expectations:
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Panama-incorporated legal entity with registered office and resident agent
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Disclosure of Ultimate Beneficial Owners (UBOs), directors, and officers to service providers and banks
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Board and management structure demonstrating effective control and decision-making
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Corporate documents aligned with the intended crypto activity scope
Corporate Requirements
Although Panama does not issue a dedicated crypto or VASP license, crypto businesses are expected to meet robust AML/CFT and risk management standards, particularly for banking and cross-border operations:
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AML/CFT policies aligned with Panamanian regulations and international standards
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KYC and customer due diligence procedures where client interaction exists
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Source of funds and source of wealth documentation for shareholders and key persons
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Internal risk assessment and transaction monitoring approach (where applicable)
Compliance Requirements
Operational readiness and banking feasibility are the primary gatekeepers for crypto businesses structured in Panama:
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Clear description of crypto activities, transaction flows, and custody model
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Banking or EMI strategy aligned with the business risk profile
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Operational policies covering data security, internal controls, and record-keeping
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Ongoing compliance monitoring and periodic reviews to support banking relationships
Operational & Banking Requirements
Process
Our Process for registering a crypto business in Panama
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Step 1 — Business Model & Regulatory Assessment
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Assessment of activity type (exchange, OTC, custody, development, advisory)
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Analysis of custody model, client interaction, and transaction flows
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Identification of regulatory and banking sensitivities
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Determination of whether Panama should operate standalone or as part of a multi-jurisdiction structure
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Step 2 — Panama Company Formation & Structuring
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Incorporation of a Panama legal entity with registered office and resident agent
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Structuring of shareholding, directors, and governance framework
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Preparation of constitutional and internal corporate documents
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Alignment of corporate objects with the intended crypto activities
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Step 3 — Compliance & AML Framework Preparation
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Preparation of AML/CFT policies aligned with international standards
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KYC, source of funds, and risk assessment documentation
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Internal controls and operational procedures
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Compliance documentation tailored for banking and counterparties
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Step 4 — Banking Strategy & Operational Readiness
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Banking and EMI feasibility assessment
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Assistance with account opening strategy and onboarding documentation
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Review of transaction monitoring and reporting approach
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Ongoing structuring support as the business scales
1. Company Formation & Corporate Setup
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Estimated cost: USD 3,000 – 6,000 (one-time)
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Company incorporation and registered office
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Resident agent appointment
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Standard constitutional documents
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Initial corporate structuring and setup support
2. Compliance & AML Framework
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Estimated cost: USD 5,000 – 15,000 (one-time, scope-dependent).
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AML/CFT policies aligned with international standards
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KYC, source of funds, and risk assessment documentation
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Internal compliance procedures and controls
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Documentation tailored for banking and onboarding
3. Ongoing Maintenance & Operational Costs
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Estimated cost: USD 3,000 – 8,000 per year
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Ongoing costs depend on the scale of operations and compliance intensity.
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Registered office and corporate secretarial services
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Periodic compliance reviews and updates
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Accounting, reporting, and advisory support
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Banking and operational maintenance
Why Work With Consultrio on Your Crypto Business in Panama
End-to-end support
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Deep experience with non-custodial, OTC, Web3, and crypto operational models
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Practical understanding of jurisdictions without dedicated crypto licenses, including Panama
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Proven track record supporting crypto businesses across Latin America, Europe, and offshore hubs
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Focus on structures that are commercially usable, not just legally incorporated
Crypto & VASP Structuring Expertise
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AML/CFT frameworks aligned with international standards and bank expectations
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KYC, source of funds, and risk assessment documentation tailored to your model
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Clear explanation of transaction flows, custody setup, and client interaction
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Structuring designed to withstand enhanced bank and counterparty due diligence
Compliance-First & Bank-Ready Approach
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Panama company incorporation, governance, and group structuring
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Banking and EMI feasibility assessment and onboarding strategy
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Alignment of Panama entity with other licensed or regulated jurisdictions (if required)
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Ongoing advisory support as your crypto business scales
Structuring, Banking & Operational Setup
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Ready to Start Your Crypto business in Panama?
If you are planning to structure a crypto exchange, OTC desk, custody solution, Web3 platform, or token project, Panama can be an effective jurisdiction when designed correctly. While Panama does not operate a formal crypto licensing regime, success depends on proper structuring, compliance readiness, and a realistic banking strategy from day one. We help you assess feasibility, design a compliant structure, and build a bankable setup aligned with your business model and risk profile.
FAQ
Frequently asked questions
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