Is crypto legal in Panama? Rules & regulation (2026)

Legal framework

No dedicated crypto law in force; Law 23 of 2015 (AML/CFT) via UAF applies to virtual-asset businesses; Bill 247 (March 2025) pending in National Assembly subcommittee

Status by sub-area

• Stablecoins

  None

  No stablecoin-specific legislation exists in Panama. Bill 247 (2025) would recognise stablecoins as valid voluntary payment instruments under a mutual-agreement model, but imposes no reserve backing, redemption, audit, or capital requirements. The bill remained unenacted as of May 2026.

  Still pending: Bill 247 (2025) proposes stablecoin recognition framework; unenacted as of May 2026

• Exchanges / VASP

  Partial

  There is no mandatory VASP or exchange licence in Panama as of May 2026. Crypto exchanges must register with the UAF and comply with AML/CFT obligations under Law 23 of 2015, but no capital adequacy, market-integrity, or conduct-of-business rules specific to crypto platforms exist. Bill 247 proposes mandatory UAF-issued VASP licences.

  Still pending: Bill 247 proposes mandatory UAF-issued VASP licensing for exchanges

• Token Offerings

  None

  Panama has no legal framework classifying tokens as securities and no ICO, STO, or token-sale registration or disclosure requirements. Token issuers may incorporate in Panama and conduct offerings without sector-specific approval, provided activities do not cross into banking or regulated securities intermediation under existing law.

• Custody

  None

  No dedicated custody rules for digital assets exist in Panama. There are no requirements for asset segregation, qualified-custodian status, proof of reserves, or insurance for entities holding client crypto. General commercial and contractual law applies by default.

• DeFi

  None

  Panama has no regulatory stance on decentralised finance. No guidance from the UAF or any other authority addresses DeFi protocols, front-end operators, automated market makers, or DAOs. The general permissive but unregulated environment for crypto applies by default.

• Tax

  Partial

  Panama's territorial tax system effectively exempts foreign-sourced crypto income from local taxation for both individuals and companies. No specific DGI guidance addresses crypto capital gains, staking rewards, airdrops, or VAT treatment. Panama-sourced crypto business income is taxable as ordinary income. Bill 247 proposes a dedicated DGI-administered special tax regime.

  Still pending: Bill 247 proposes DGI-administered special tax regime for crypto; unenacted as of May 2026

Key points: crypto & digital assets in Panama

1. 01Bill 697 struck down unconstitutional

   Panama's National Assembly passed Bill 697 in April 2022 to legalise crypto payments and create a licensing regime. President Cortizo referred it to the Supreme Court, which declared the entire law unconstitutional in July 2023, leaving Panama with no dedicated crypto legislation.

   centralbanking.com loc.gov orbitax.com

2. 02Bill 247 (2025) pending in subcommittee

   Introduced 20 March 2025, Bill 247 proposes voluntary legal recognition of Bitcoin, Ethereum, and stablecoins as payment instruments, mandatory VASP registration with the UAF, creation of a National Council for Digital Assets (CONAD), and a DGI-administered special tax regime. It was referred to a National Assembly subcommittee on 30 September 2025 and had not been enacted by May 2026.

   dig.watch newsroompanama.com

3. 03No mandatory VASP licence today

   Panama and Costa Rica remain the last two Central American jurisdictions without a formal VASP licensing requirement as of 2026. Crypto businesses operate via standard company incorporation and must register with the UAF for AML/CFT compliance under Law 23 of 2015, but no crypto-specific operating licence is required.

   zitadelleag.com legalnodes.com

4. 04UAF AML registration is mandatory

   Under Law 23 of 2015, entities engaging in virtual-asset activity are required to register with the Unidad de Análisis Financiero (UAF), appoint a compliance officer, implement KYC/CDD procedures, and file suspicious transaction reports in line with FATF standards. Failure to register exposes operators to administrative or criminal sanctions.

   legalnodes.com

5. 05Territorial tax system de facto exempts most crypto gains

   Panama taxes only Panama-sourced income. Crypto gains, trading profits, and staking rewards derived from activity outside Panama are not subject to local income tax for residents or locally incorporated entities. No specific DGI guidance addresses crypto classification, capital-gains rates, or reporting obligations.

   theworldlawgroup.com lexology.com

6. 06Tokens not classified as securities

   Panamanian regulators have not issued any guidance classifying digital tokens as securities. There is no ICO, STO, or token-sale registration or disclosure framework. Token issuers may incorporate in Panama without sector-specific approval, provided activities do not cross into banking or regulated securities intermediation.

   legalnodes.com offshore-protection.com

Sources

1. 1.loc.gov/item/global-legal-monitor/2022-05-10/panama-national-assembly-passes-
2. 2.centralbanking.com/fintech/crypto-assets/7959310/panama-supreme-court-rejects-crypto-law
3. 3.orbitax.com/news/archive.php/Panama-Supreme-Court-Finds-Bil-53279
4. 4.dig.watch/updates/panamas-draft-bill-sets-the-stage-for-crypto-payments
5. 5.newsroompanama.com/2025/09/23/could-panama-be-the-next-big-player-in-crypto-adoption/
6. 6.zitadelleag.com/news/where-to-register-a-vasp-company-without-licensing-costa-rica-an
7. 7.legalnodes.com/article/panama-crypto-regulations-insights-for-web3-founders-in-2025
8. 8.theworldlawgroup.com/membership/news/news-crypto-assets-and-tax-impact-in-panama
9. 9.lexology.com/library/detail.aspx?g=d3462e5f-782e-4ed0-85ab-4e87782ecc50
10. 10.lightspark.com/knowledge/is-crypto-legal-in-panama
11. 11.offshore-protection.com/offshore-blog/offshore-foundation-for-ico-why-panama