How To Get a Panama VASP License?

While a Virtual Asset Service Provider (VASP) in Panama is not a license, it offers one of the quickest and most cost effective ways to launch a crypto / digital asset firm in Latin America. Establishing a Panama VASP involves a simple local company formation which fully authorizes the entity to offer crypto and other digital asset services to a global client base. Additional benefits of a a Panama VASP include low costs, no taxes, and friendly environment for virtual / digital asset providers.

What is a Panama 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%

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.

Panama VASP: 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

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 Cryptocurrency / Virtual Currency VASP Registration

Panama is an excellent jurisdiction for startup firms looking for a legitimate destination to register their crypto exchange or digital asset firm. With no capital requirements and minimal ongoing expenses, a Panama VASP registration is both cost effective and efficient. Finally, with the rapid growth of crypto in the LATAM region of the world, Panama is an excellent jurisdiction to establish a presence.

Panama VASP Overview – Check Out Our YouTube Channel

Registering a VASP 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.

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.

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.

About the Author

This article was written by Jonathan Baumgart, Founder and CEO of Atomiq Consulting. With over a decade of experience in the forex industry, Jonathan specializes in helping businesses launch brokerages and navigate global licensing requirements.

Connect with Jonathan on LinkedIn