Advantages Requirements Types Registration of a crypto company Regulations Taxation FAQ

Crypto License in Panama

Panama is attracting cryptocurrency startups by offering tax incentives and legislative support. Since 2021, a law regulating crypto-operations has been in place, which is helping the industry to grow. Gofaizen & Sherle offers services to obtain a Panama Crypto License in Panama remotely, guaranteeing a comprehensive solution and licensing in up to 1 week.

Panama regularly updates its financial legislation, making it an attractive jurisdiction for fintech and cryptocurrency businesses. The country offers tax incentives and supports blockchain technology, making it a popular destination for cryptocurrency startups.

In 2021, a bill was proposed that regulated the legal status of cryptocurrencies and gave a boost to the field. Panama’s strategic geographical location and liberal economic policies provide an attractive environment for international investment and business expansion in Latin America. Obtaining a Panama crypto license promises fast results and comprehensive solutions for businesses interested in the crypto industry. To obtain a Panama Cryptocurrency exchange license, it is necessary to provide IDs of directors and shareholders, proof of address, and complete a “due diligence” form.

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Advantages of Obtaining a Crypto License in Panama

Central location

Panama is favorably located between North and South America and the Caribbean, facilitating quick access to these markets and speeding up the exchange of information and goods.

Favorable tax scheme

Panama provides extensive tax preferences for cryptocurrency firms, including exemptions from capital gains and foreign income tax, which increases profitability and attracts foreign investment.

Advanced financial infrastructure

Panama has an advanced banking system and financial services that support technological innovation and the development of the digital economy, making the country an ideal base for tech ventures and cryptocurrency transactions.

Support for innovation

The government of Panama actively supports the development of new technologies and entrepreneurship, creating a favorable environment for the cryptocurrency sector to thrive.

Building trust and reputation

The issuance of an official cryptocurrency license in Panama builds trust with customers and partners, confirming companies’ commitment to high standards of security and transparency, which has the effect of raising their international profile.

Intellectual Property Protection

Panama offers strong intellectual property protection safeguards, which is particularly important for companies developing innovative technologies and software, facilitating the safe commercialization of their products.

Regulatory clarity and adaptability

Panama provides a regulatory framework for cryptocurrency transactions, guaranteeing stability and transparency for businesses. Regulatory flexibility allows companies to effectively adapt to the dynamically changing market for digital assets while meeting international security standards.

Expansion into international markets

The Panama crypto license opens up significant opportunities to expand into global markets. This not only increases your customer base but also facilitates interaction with international financial institutions and payment systems, which is critical for your business to thrive.

Requirements for a Crypto License in Panama

Companies wishing to obtain a Panama Cryptocurrency exchange license must meet the following requirements:

Register a legal entity in Panama under the SFI (Specialized Financial Institutions) category.
Obtain a commercial license and register in the public registry.
Publish on the website information about the company’s commercial name, physical office address, domain names, contact e-mail addresses, terms of use of the website, and privacy policy.
Inform the regulator of the business purpose and collect from customers the information required by law.
Submit descriptions of business models, a detailed business plan for the first three years, and a list of services to be provided.
Provide copies of personal data, CVs of owners and directors, and criminal records of related persons.
Technical equipment report and bank statement confirming the required amount of finances for the operation.
Develop and implement customer due diligence procedures, and information on high-risk transactions.
Comply with AML/KYC regulations and establish internal policies to monitor and control transactions.
Submit documentation to undergo registration and obtain a license.

Given the rapid development of cryptocurrency regulation in Panama, it is important to constantly interact with legal advisors to adapt to changes in legislation.

Types of applications for obtaining a Panama crypto license

For companies wishing to operate in the cryptocurrency industry in Panama, the following types of Crypto License in Panama are available, each with its specific features and requirements:

License for cryptocurrency exchanges.

Allows you to conduct buying, selling, exchanging, and storing cryptocurrencies.

Requirements:

Transparency of operations.
Protection of user data.
Compliance with AML and CFT policies.

License for transactions with cryptocurrencies

For companies conducting cryptocurrency transactions on behalf of clients.

Requirements:

Availability of a robust security infrastructure.
Compliance with anti-money laundering and counter-terrorist financing policies.

Cryptocurrency wallet license

Providing cryptocurrency storage and management services.

Requirements:

High level of security of the storage system.
Availability of access recovery procedures.

ICO (Initial Coin Offering) License

Conducting ICOs to raise funds for cryptocurrency projects.

Requirements:

Providing a detailed business plan.
Description of the token and information about the project team.
Legal check to confirm compliance with local laws.

Registration of a crypto company in Panama

To register a cryptocurrency company in Panama and obtain a Cryptocurrency exchange license, you need to submit the following package of documents to the regulatory body:

A detailed description of the grounds for starting the activity.
A general business plan, including a list of services.
A detailed business plan describing the strategies and expected results at the start-up phase.
Draft a social contract for a Specialized Financial Institution (SFI) governed by Panamanian laws.
Copies of personal data, and resumes of owners, directors, and officers of the SFI business.
Conviction certificates or lack thereof for persons associated with the company.
Information on technical equipment required for operations and customer service.
Bank account statement confirming sufficient funds to legally operate under a cryptocurrency exchange license.
Documentation describing control procedures to comply with AML (Anti-Money Laundering) and KYC (Customer Identification) requirements, including internal transaction monitoring policies.
Proof of payment of all required government fees and services.

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Cryptocurrency Regulations in Panama

Bill 697, aimed at adapting the legislation of the Republic of Panama to the digital economy, cryptocurrencies, and blockchain technologies, was approved by the National Congress of Panama but has not yet entered into force due to a presidential veto. The law includes several measures aimed at strengthening innovation and attracting foreign investment, including creating an attractive tax policy for crypto transactions and clear requirements for obtaining a Crypto License in Panama.

According to the bill, blockchain technology will be used to digitalize the identity of both individuals and entities in Panama. Crypto-validated crypto-assets are proposed as a means for payments, including taxes and other government fees. The issuance of digital value will be regulated to prevent financial crimes, such as money laundering, by international standards.

The main objectives of this law are:

Expanding the digitalization of government entities by implementing distributed ledger and blockchain technologies to digitize the identity of individuals and entities in Panama.
Developing clear rules and requirements for obtaining crypto-licenses, providing legal and tax certainty in the use, ownership, and exchange of cryptocurrencies.
Creating a favorable tax policy with low rates for cryptocurrency transactions.
Implementing international anti-money laundering standards to strengthen the country’s financial security.
Promoting blockchain and cryptocurrency technologies as a means of attracting foreign investment and stimulating economic growth.

The government is actively following the development of cryptocurrencies and blockchain technologies, encouraging their integration to attract investment. In 2018, a working group was established to study the impact of these technologies on the country’s financial system. The adoption of this bill is intended to help create a favorable environment for innovation and the development of the digital economy in Panama.

Taxation of cryptocurrencies in Panama

Panama is developing a tax policy for cryptocurrency companies under a territorial tax system where only domestically generated income is taxed. The main tax rates for cryptocurrency companies are as follows:

Corporate income tax: The rate is 25%. The tax base only includes income deemed to be earned in Panama.
VAT: Cryptocurrency transactions are currently not subject to VAT, but the tax rules may change in the future.
Dividend Tax: None for cryptocurrency assets.
Capital gains tax: Absent for cryptocurrency assets.
Annual license fee: Varies from $250 to $3000 depending on the type of company.

Companies must also comply with international anti-money laundering standards, including customer identification and suspicious transaction reporting. These measures are aimed at ensuring transparency and security in financial transactions. Panama offers a favorable environment for cryptocurrency transactions and investments, but companies must carefully monitor changes in tax policy and comply with all tax obligations.

FAQ about Panama crypto license

How do I get a crypto license in Panama?

To obtain a cryptocurrency exchange license in Panama, you must open a company with a corporate account and submit an application to the regulator including a business plan, proof of AML/CFT compliance, and a legal address.

How much is a crypto license in Panama?

Cryptocurrency exchange license in Panama cost can vary depending on the specific requirements and complexity of the process. On average, the cost of opening an international IBC in Panama starts from 2500 euros.

How long is a cryptocurrency license issued in Panama?

To obtain a license for a cryptocurrency exchange in Panama, you must first register a legal entity. For the first three years, the company is regulated by the Ministry of Economy, after which control is transferred to the main regulator.

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