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ICO in Panama

ICO in Panama

The initial coin offering, or ICO in Panama is a means of raising capital for a cryptocurrency company that is largely unregulated.

An ICO can be launched through a company or a foundation in Panama, although in practice it is more common to do so through a company, including an offshore company.

The steps needed to open a company in Panama are easy to follow for many investors, especially when they benefit from the assistance offered by a team of incorporation specialists, such as our own.

Launching an ICO in Panama can be arranged once the company that will holds the cryptocurrency prepares the needed documentation, including the white paper for the launch (as discussed below).

ICO requirements

An ICO in Panama is not subject to specific regulation and control on the part of the authorities, however, this funding method is subject to a set of requirements in its own right.

The goal of the ICO in Panama is to raise the capital needed to complete the development of a new a cryptocurrency or another crypto-related service.

While unregulated in specific terms in Panama, the global conditions for ICO launches have begun to change in recent years, as more countries are demanding that companies to follow rules for anti-money laundering.

Several steps are required for a successful ICO launch and our team of Panama company formation specialists summarizes these below:

  1. The white paper: the description of the product or service and how it will serve as a working solution for solving it; the document also includes technical information on the technology used, and it should not merely be intended for marketing purposes;
  2. The smart contract: the computing code that is used when predetermined conditions are met; it is used to automate the agreement and there is no need for an intermediary;
  3. The collection method: the funds collected through the ICO in Panama are typically stored by means of a wallet; the development team will need to set up this wallet in a proper manner;
  4. The website: the event will take place on a website which will also feature the evolution of the campaign to collect the needed funds.

According to Statista, the following amounts were raised through ICOs in recent years:

  • –  6.88 billon USD in Q1 of 2018;
  • –  4.33 billion USD in Q2 of 2018;
  • – 1.1 billion USD in Q3 2018; starting with 2019, and throughout the pandemic years, the amount has gradually reduced.

The ICO steps listed herein are only described in general terms and are based on the fact that the company launching the initial coin offering is already incorporated.

For existing companies in Panama, our team provides virtual office services, along with other solutions.

We can also help foreign investors who wish to obtain residency in Panama apply for the right permit that will allow them to remain in the country and manage their crypto company.

Knowing important details on the chosen residence permit for Panama before you submit your application can help you better understand the general requirements, and prepare the documents as required by the authorities, thus avoiding any situation in which the processing of the residence permit application is delayed due to insufficient or incorrect documentation.

Company formation in Panama prior to the ICO launch

Investors who set up an ICO launch in Panama will have opened a company or a foundation here. The basic incorporation requirements are listed below by our team:

  1. Choose the business form: most often investors choose between the Panamanian limited liability company and the International Business Company, used for offshore purposes;
  2. Decide on the particulars: the company in Panama is required to have a local registered address and a registered agent;
  3. Gather the documents: the registered agent (in most cases) is the one to prepare the documents for the registration of the company, the Memorandum and the Articles of Association;
  4. Register: companies are registered with the Panamanian Public Registry and our local incorporation experts can help you during this stage.

Contact us if you want to know more about organizing an ICO in Panama.

We also offer accounting services for local companies and our lawyers can help answer specific questions.

If you are interested in other matters concerning foreign nationals in Panama, such as those related to Panamanian immigration and general relocation matters, you can discuss these with our team. We answer questions about visas, the types of residence permits (labour or investment reasons, as well as special types of permits, such as those for family reunification, or those issued under special laws).

For those who are already living in the country, our specialists can answer questions concerning the application procedure for Panamanian citizenship. We will provide assistance as needed for preparing the documents and making the submissions.