Blockchain and Cryptocurrency Legal Services in Panama
Expert legal support for blockchain projects, crypto businesses, and digital assets.
Legal Expertise for the Blockchain Industry
At Paralelaw, our attorneys specialize in advising blockchain startups, crypto investors, and businesses on navigating Panama’s evolving regulatory landscape for digital assets and blockchain technology.
Blockchain Legal Services We Offer
Our legal services for blockchain and crypto clients include:
- Regulatory compliance for blockchain and crypto businesses
- Drafting and reviewing smart contracts
- Advisory on cryptocurrency exchanges and ICOs
- Intellectual property protection for blockchain technologies
- Litigation and dispute resolution involving digital assets
Supporting Local and Global Blockchain Projects
Whether you’re a Panamanian startup or an international crypto company, our bilingual team provides tailored legal solutions for blockchain ventures operating in or through Panama.
Your Blockchain Legal Partner in Panama
Comprehensive legal services for crypto and blockchain innovation.
Compliance and Regulatory Guidance
We guide clients through Panama’s legal framework for cryptocurrencies, ensuring compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations.
Smart Contracts and Digital Asset Protection
Our lawyers help design, draft, and enforce smart contracts while advising on the protection and management of digital assets.
Litigation and Dispute Resolution in Blockchain
We represent clients in disputes related to blockchain technology, including fraud, IP conflicts, and contract breaches involving digital assets.
FAQ
Is cryptocurrency legal in Panama?
Yes, cryptocurrency is legal in Panama. There is no prohibition on buying, selling, holding, or using cryptocurrency. However, there is also no comprehensive law specifically regulating crypto assets. Bill 247, which aimed to establish a complete regulatory framework for cryptocurrencies, was partially vetoed by the Executive and remains pending revision. In the meantime, Virtual Asset Service Providers (VASPs) are subject to AML/KYC regulations under the supervision of the UAF. The National Bank of Panama and the SBP do not consider cryptocurrencies as legal tender. Panama’s crypto-friendly environment, combined with its territorial tax system, has made it an attractive jurisdiction for crypto entrepreneurs and investors.
Does Panama require a crypto exchange license?
As of 2026, Panama does not have a dedicated VASP (Virtual Asset Service Provider) licensing regime. There is no specific license required to operate a crypto exchange. However, exchange operators are legally required to comply with AML regulations under Law 70 of 2019, register with the UAF as obligated subjects, implement KYC/AML programs, report suspicious transactions, and maintain transaction records for at least five years. Depending on the services offered, additional authorizations from the SBP or SMV may be required. Given the evolving regulatory landscape, we strongly recommend obtaining legal counsel before launching a crypto exchange in Panama to ensure full compliance with all applicable regulations.
How is crypto taxed in Panama?
Under Panama’s territorial tax system, gains from cryptocurrency transactions that originate outside of Panama are not subject to income tax. This means that if you buy and sell crypto through international exchanges while residing in Panama, your gains would generally not be taxed in Panama. Only crypto income from Panamanian-source activities would be subject to regular income tax rates. Since there is no specific crypto tax legislation, the tax treatment is based on general territorial tax principles. This creates a favorable environment for crypto investors, although it is important to properly document the source of transactions. Consult with a tax advisor regarding your specific situation and your home country’s tax obligations on crypto holdings.
What happened to Panama's crypto bill (Bill 247)?
Bill 247 was approved by Panama’s National Assembly in 2022 and aimed to create a comprehensive regulatory framework for cryptocurrencies, blockchain, and digital assets. However, it was partially vetoed by the Executive branch, which raised concerns about AML compliance gaps and alignment with FATF recommendations. The bill remains pending revision. Key provisions included: legal recognition of crypto as a means of payment, regulation of crypto exchanges and VASPs, token issuance rules, and a regulatory sandbox for blockchain startups. While the bill’s future is uncertain, the existing AML/KYC framework under Law 70 of 2019 continues to apply to all VASPs operating in Panama.
What AML/KYC obligations do VASPs have in Panama?
Los Proveedores de Servicios de Activos Virtuales (VASPs) en Panamá están clasificados como sujetos obligados bajo la Ley 70 de 2019 y deben cumplir con: registrarse ante la Unidad de Análisis Financiero (UAF), implementar polÃticas de Conozca a su Cliente (KYC) para verificar la identidad de los usuarios, aplicar debida diligencia reforzada para transacciones de alto riesgo, reportar operaciones sospechosas a la UAF, mantener registros de transacciones por al menos cinco años, y designar un oficial de cumplimiento. El incumplimiento puede resultar en sanciones administrativas y penales.
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