Is crypto legal in Panama? Regulation & rules (2026)

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.

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.

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.

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.

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.

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.