Panama Crypto License (VASP) | Offshore Company Setup Guide
What is a Panama Crypto / VASP License?
The term “Panama VASP license” is commonly used to describe a Company Formation in Panama, which is authorised by the UAF of Panama. There is no regulatory framework for cryptocurrency regulation in Panama, however, one can register a local company and legally operate there without regulation.
Panama VASP License Summary
- As of this writing there is no regulatory framework for crypto licensing in Panama
- Crypto / digital asset firms can legally operate out of Panama while remaining unregulated
Panama Crypto License Terminology
When exploring crypto licensing in Panama, certain terms and phrases require clear definitions in order to fully understand the licensing process.
VASP: Virtual Asset Service Provider
The official term for a business operating in crypto or digital assets in Panama. Although a license is not provided in Panama, VASPS are permitted to legally operate with a simple company formation.
Sociedad Anónima (S.A.)
In Panama, a simple company formation is referred to as a Sociedad Anónima (S.A.). This entity is used to register a VASP in Panama.
UAF: Unidad de Análisis Financiero
The UAF regulates financial services in Panama. While a license is not required, registration with the UAF for AML / compliance purposes is mandatory.
DASP & CASP
A Digital Asset Service Provider (DASP) is not the officially terminology used in Panama but describes the same functions of a VASP. The same applies to a Crypto Asset Service Provider (CASP) which describes crypto firms operating in Europe.
Panama VASP – Key Highlights
- The fastest way to obtain VASP registration in Latin America
- No massive budget required, get started for less than $10,000
- A Panama VASP is not a license, rather a popular jurisdiction for registering a crypto / digital asset firm
- Ability to obtain a VASP within 2 – 4 weeks
- Shareholder and director details are fully anonymous
- No physical office mandated
- 3 company directors required
- No capital requirements
- Taxes set at 0%
Requirements For Establishing A Crypto Company in Panama
- A local company: Sociedad Anonima (S.A.)
- Currently no paid up capital is required
- Minimum of 3 directors
- Registration with UAF
- Adherence to local AML & KYC policies
- A physical office and local directors are not currently required
Steps to Establish a Crypto VASP in Panama:
- Book an initial strategy call with Atomiq Consulting to evaluate your crypto business objectives and confirm eligibility for registration as a Virtual Asset Service Provider (VASP) in Panama.
- Once engaged, our consultants will walk you through the framework established under Panama’s Law No. 697, which provides the legal foundation for crypto companies and virtual asset activities.
- Incorporate a Panamanian entity, a mandatory step for any exchange, wallet provider, or crypto-related business seeking to operate legally in the jurisdiction.
- Appoint directors; currently a total of 3 are required. It is possible to appoint non-local directors.
- Submit the VASP application, accompanied by all required corporate and compliance documentation.
- Address any feedback or clarification requests from registar.
- Upon approval, our team can also assist with a bank account application.
An Important Note On The Regulatory Status of Panama Virtual Asset Services Providers
As of this writing, there is no license in Panama, rather digital asset firms will register their company with the UAF, which is the local regulator. This means that digital asset firms are able to operate in Panama unregulated but with the approval of local authorities.
Crypto firms seeking regulated alternatives should strongly consider a jurisdiction like El Salvador, which offers a fully licensed Digital Asset Service Provider (DASP) solution. For those seeking fast regulation, jurisdictions like South Africa or Labuan are also alternatives to consider.
Panama Offshore Crypto License: Timeline & Costs
Panama is an attractive jurisdiction due to how quickly one can register as a VASP. From our experience, one can expect to receive a new company formation within 14 – 30 working days.
Timeline & Costs Breakdown
- 14 – 30 business days required to register a new company
- Taxes set at 0%
- No capital requirements
- Local office and directors not required
- Only fees to be paid are local registration / government fees. Contact our team for a price quote
- Contact our team for a price quote
How Does Panama Compare to Other Jurisdictions?
| Parameter | Panama | El Salvador | Mauritius |
|---|---|---|---|
| Capital | $0 | $0 | $40,000 |
| Approval Timeline | 2 – 4 weeks | 2 – 3 months | 7 – 9 months |
| Regulation Required For Approval? | No | Yes | Yes |
| Local Banking? | No | No | Yes |
| Local Office & Staff Required? | No | Yes | Yes |
| Leverage Restrictions | No | No | No |
Is Panama Suitable for Your Crypto Business?
Although the term “Panama Crypto License” is widely used within the industry, Panama does not currently operate a formal licensing regime for Virtual Asset Service Providers (VASPs). Instead, businesses typically establish a Panama company to conduct cryptocurrency-related activities where permitted by law. This structure can be an attractive solution for many startups, although it may not be appropriate for every business model.
✔ Panama May Be a Good Choice If:
- You are launching a new cryptocurrency or blockchain startup.
- You are seeking a fast and cost-effective offshore company formation solution.
- Your business primarily serves clients outside heavily regulated markets.
- You require operational flexibility while your business is still growing.
- You wish to minimise ongoing compliance and regulatory reporting obligations.
- You plan to obtain licensing in another jurisdiction at a later stage.
✘ You Should Consider Another Jurisdiction If:
- You require a fully regulated crypto license recognised by financial institutions.
- Your business relies heavily on opening accounts with Tier-1 international banks.
- You intend to target institutional investors or publicly listed companies.
- You need regulatory approval to satisfy investors, payment providers or strategic partners.
- You plan to market extensively within jurisdictions that expect licensed crypto businesses.
- You require maximum regulatory credibility from day one.
For businesses seeking a recognised regulatory framework, jurisdictions such as El Salvador, Mauritius and Labuan may provide a more suitable solution. However, for entrepreneurs prioritising speed, flexibility and lower establishment costs, a Panama crypto company remains one of the most attractive offshore structures available.
Atomiq Consulting – Your Partner for Cryptocurrency & VASP Registrations
To learn more about the application process, ongoing charges, and address any other questions related to a digital asset / cryptocurrency VASP registrations in Panama, don’t hesitate to contact us. In addition, our team can also assist your group with obtaining a crypto / virtual asset license in a variety of global jurisdictions.
Contact Us Today to Learn More About Obtaining a Virtual Currency License in Panama
Why Obtain a VASP In Panama?
Panama VASP Overview – Check Out Our YouTube Channel
Registering an unregulated crypto license in Panama – Key Takeaways
- Panama has emerged as a popular hub for crypto / virtual asset activities in South America
- Cryptocurrency / virtual‑asset businesses are not required to obtain SFI licensing
- Company formation takes approximately 2 – 3 weeks to complete
- No taxes to be paid on business outside of Panama
- A minimum of 3 directors are required
- Ability to operate without a license
Panama VASP Registration FAQ
Is a license needed to operate a VASP in Panama?
As of this writing it is possible to launch a VASP in Panama without a license.
Which law governs crypto / digital assets in Panama?
Law 23 of 2015 sets the legal precedent for virtual asset regulation in Panama. As a result, all VASPs must register with the UAF, the local financial regulator.
How long does it take to incorporate a Panama VASP?
It will take approximately 2 weeks to set up a Panama VASP.
Are there any Panama VASP for sale?
To determine if we have any Panama VASP on sale, it is best to check with our online marketplace. By visiting our online marketplace you can see the latest crypto exchanges, banks, EMIs and FX brokers we currently have on sale.
Is it possible to appoint a non-local director in Panama?
Yes, in order to meet the requirement of 3 directors, it is acceptable to appoint a director who is not a full time resident of Panama.
What is UAF? Is it required to register a VASP with the UAF?
Unidad de Análisis Financiero also known as UAF is the regulatory body which oversees financial services in Panama. While VASPs are currently not required to be licensed, it is important that they register their business with the UAF.
Which jurisdictions are similar to Panama?
El Salvador is a consideration for those looking to obtain a license for crypto / virtual asset activities. A comparable jurisdiction for a quick and easy company registration would be St. Vincent.
What is the tax rate for Panama VASPs?
The tax rate in Panama is 0% for all VASPs which perform business outside the country.
Is Atomiq Consulting able to assist with banking services as well?
Yes, in addition to helping obtain the cryptocurrency / VASP formation in Panama we’ll also help your business obtain payment service options.
What is a Sociedad Anónima (S.A.)?
Sociedad Anónima also known as (S.A.) is a type of local company formed in Panama. The majority of digital asset providers in Panama use Sociedad Anónima (S.A.) registrations when forming their VASPs.
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