To open a crypto company in Panama, investors follow a few key company formation steps, which can be fully assisted by our local incorporation experts.
| Quick Facts | |
|---|---|
| Cryptocurrency seen as legal tender (Yes/No) | No |
Local regulatory agency | Superintendence of Banks (SBP) and Superintendence of the Securities Market (SMV), however, they have not issued specific regulations |
Special licenses for those who open a cryptocurrency company in Panama | Subject to further clarifications |
| Special licenses for crypto exchanges in Panama | New laws are expected to come into force concerning the granting of licenses |
| Anti-money laundering rules | Anti-money laundering measures are expected |
| Special requirements for investors who open a cryptocurrency company in Panama | Presently, there are no specific cryptocurrency or blockchain regulations in Panama. Legislative changes are expected |
| Residency requirements for investors | No |
| Types of companies used by those who open a cryptocurrency company in Panama | Limited liability company (for activities within Panama), the International Business Company (for trading outside of Panama) |
| Minimum capital for a cryptocurency company in Panama | Not for the IBC |
| Minimum number of shareholders | 1 for the IBC |
| Minimum number of directors | 3 for the IBC |
| Business license |
Issued by the Ministry of Commerce and Industries for the LLC |
| Mandatory requirements for the cryptocurrency company | Registration as per the Panama Company Law, resident registered agent |
Cryptocurrency company taxation |
No taxes for income derived from outside of Panama in case of the IBC 25% for companies with business activities within the country (subject to specific calculation methods) |
| Reasons to open a cryptocurrency company in Panama |
Easy and fast company incorporation Tax neutrality for the IBC on activities performed outside of Panama No nationality restrictions, no residency requirements for investors |
Table of Contents
What does a crypto company do?
Companies can engage in various crypto-related activities, such as:
- Exchanges: setting up and maintaining the platform that allows users to buy, sell, and withdraw digital currencies;
- Payment processing: providing the solutions for businesses that accept payments in digital currencies (like Bitcoin or Ethereum);
- Wallet services: the service related to storing and managing one’s digital currencies in one place;
- Others: consulting services, token launches, and others.
Can anyone open a crypto company in Panama?
Yes. There are no restrictions on nationality, and Panama allows full foreign ownership for the created business.
There are no conditions for the founders to be residents or to have a partner who is a Panamanian resident. However, compliance and disclosure requirements are in place in terms of stating the ultimate beneficial owner of the company.
What are the steps required to open a crypto company in Panama?
Company formation in Panama is a straightforward process that can be summarized in six key steps:
- New company name reservation;
- Documentation review;
- Company formation application form filling in;
- Preparing and submitting the incorporation documents (subject to receiving the mandatory payments);
- Awaiting the issuance of the corporate documents;
- Bank account opening and other post-incorporation procedures.
What documents do I require to set up a crypto company?
The following list of documents is generally required for company incorporation, including for a crypto business in Panama:
- The shareholder’s certified passport copy;
- Recent proof of address for the shareholder (no older than three months);
- Bank reference for the shareholder (issued in the last three months);
- Statement proving the source of the funds;
- The signed CV or resume.
When the shareholder of the crypto company is another legal entity, the documents will include its Certificate of Incorporation, information on its shareholders and directors, a certificate of good standing, and others.
All presented documents are duly certified (by a notary public, in most cases). Other requirements can also apply, and company formation in Panama is subject to a “know your client” rule referring to anti-money laundering verifications.
How much does it cost to open a crypto company in Panama?
Our team offers company formation packages that can start at $2,500, excluding government fees.
Please keep in mind that the costs above are only indicative ones.
Do I have to obtain a crypto license in Panama?
Investors who start a crypto company in Panama are currently not subject to stringent regulations or licensing requirements for obtaining a VASP license in Panama, as may be the case in other jurisdictions.
Nonetheless, it is expected that the Panamanian authorities, such as the National Bank of Panama, will provide for certain crypto regulations in the near future.
What regulatory provisions are currently in place for virtual asset service providers in Panama?
While the country does not impose a clear legal framework for the regulation of virtual assets (cryptocurrencies) and concerning virtual asset service providers, operational, regulatory, and supervisory aspects are taken from the AML/CFT laws.
Anti-money laundering (AML) laws and measures for combating financial terrorism (CFT) are used across all jurisdictions, and crypto companies in other countries are expected to follow these when they offer their services to clients.
Panama’s current terms and definitions used in its AML/CFT laws need clarification. Moreover, the Government was asked to consider several AML/CFT issues, and a bill of law on VASP activities was moved further up for consideration by the Supreme Court.
Contact us for more information about how we can help you open a crypto company in Panama and the legal framework that may make it mandatory to obtain a crypto license in Panama.