Bitcoin & Cryptocurrency Regulation in Panama

Owning, buying, selling and using Bitcoin and other cryptocurrencies is legal in Panama. No law bans digital assets, and individuals can hold and transact in them without special permission.

What does not exist is a purpose-built legal framework. Most analysts describe Panama as a legal gray area for crypto: it is permitted, but it is not comprehensively classified across every use case. Crypto is NOT legal tender. Panama is a dollarized economy, using the US dollar alongside the Panamanian balboa, which is pegged one to one to the dollar, and the country has never had a central bank issuing monetary policy. No person or business is required to accept crypto as payment; where two parties agree to use it, they generally may, but acceptance is voluntary and token values can change quickly. In short, crypto is legal to use but operates largely outside a specific statutory regime, which makes due diligence on platforms, counterparties and tax treatment especially important. For a primer on how this compares globally, see our crypto regulation guide.

There is no single dedicated crypto regulator in Panama and, because the country is dollarized, no central bank conducting monetary policy. Instead, several existing authorities touch crypto-related activity depending on what is being done:

• Unidad de Analisis Financiero (UAF), the Financial Analysis Unit, is the financial-intelligence body central to anti-money-laundering (AML) and counter-terrorist-financing reporting. Entities meeting the definition of a virtual-asset service provider can fall within its registration and reporting expectations.
• Superintendencia de Bancos de Panama (SBP), the banking superintendency, supervises banks and governs how regulated institutions interact with crypto businesses. The SBP has historically warned the public about the risks of crypto.
• Superintendencia del Mercado de Valores (SMV), the securities-market superintendency, becomes relevant when a token has the characteristics of a security or investment offering.
• Direccion General de Ingresos (DGI), within the Ministry of Economy and Finance, administers taxes.

Because no single statute consolidates these roles for crypto, the practical compliance picture is assembled from general AML, securities, banking and tax rules. The official sites are listed in the final section below.

Panama has tried, and so far failed, to pass a dedicated crypto law. A bill widely referred to as the "crypto law" (Bill No. 697) was approved by the National Assembly in 2022 but was partially vetoed by then-President Laurentino Cortizo, who cited the need to align with Financial Action Task Force (FATF) anti-money-laundering standards and raised constitutional concerns. It did not enter into force as originally drafted.

The principal law that already applies to crypto businesses is Law 23 of 2015, Panama's main AML and counter-financing-of-terrorism statute. It defines a list of regulated "sujetos obligados" (obligated subjects) that must register with the supervising authority, conduct customer due diligence, keep records and report suspicious activity. Entities that meet a virtual-asset-service-provider profile are commonly expected to register with the UAF and run a documented AML program under this regime, even though Law 23 was not written specifically for crypto. Public reporting and legal commentary describe Law 23 and related AML laws as the practical baseline today; treat the precise scope as something to confirm with a Panamanian lawyer, because interpretation is evolving.

Since 2025, lawmakers have sought a clearer, dedicated regime. A bill widely reported as No. 247 was introduced in March 2025 by an alternate deputy and aims to create a legal framework for crypto-asset transactions and to position Panama as a regional digital-asset hub. As described in public reporting, the bill would define key terms, recognize certain digital assets (such as Bitcoin, Ethereum and stablecoins) as valid means of payment where parties agree, require virtual-asset service providers such as exchanges and wallet operators to register or be licensed with AML and know-your-customer obligations, and create a National Council of Digital Assets (reported as CONAD) to coordinate oversight.

As of 2026 these proposals remain under legislative discussion and have NOT been enacted; reporting indicates the bill was referred to a subcommittee for further analysis in late 2025, and commentary suggests mandatory VASP licensing is unlikely to be in force before 2027 at the earliest. Treat any specific provision of Bill 247 as a proposal, not current law, until it is officially adopted, and check the National Assembly's official site for the latest status.

As of 2026 there is no mandatory, crypto-specific licensing regime for exchanges in Panama. A crypto business can generally be operated through an ordinary Panamanian company without a dedicated VASP license, which is part of why Panama is often described as a low-friction jurisdiction for digital-asset firms.

That said, "no dedicated license" does not mean "no rules." Platforms operating in or serving Panama are generally treated as virtual-asset service providers and are expected to follow AML and KYC practices consistent with Law 23 of 2015 and FATF guidance. In practice the recognized compliant pathway is to register with the UAF as an obligated subject and implement a documented AML and counter-financing-of-terrorism program. Most reputable services therefore verify customer identity, monitor transactions and keep records. If Bill 247 is enacted, formal VASP licensing and reporting duties could become mandatory, tightening the landscape. Anyone running a crypto business in Panama should obtain local legal advice on which existing obligations apply to their specific activity.

Panama uses a territorial tax system. As a general principle, income from sources outside Panama is not subject to Panamanian income tax, while income from Panamanian sources is taxable. There is no tax code written specifically for cryptocurrency, so digital-asset income is generally analyzed under these existing principles rather than under a bespoke "crypto tax."

This makes the source and nature of a transaction important: where the activity occurs, who the counterparties are, and whether gains are treated as foreign-source or local-source can all affect the outcome. Commentary frequently notes that genuinely foreign-source crypto gains may fall outside Panamanian income tax under the territorial principle, while activity carried out within Panama may be taxable; the treatment of an occasional personal sale can differ from that of a business that trades or provides crypto services locally. Because individual circumstances, residency status and the facts of each transaction vary, this guide does not state any specific rate, bracket or exemption for crypto. Confirm your obligations with Panama's tax authority (the Direccion General de Ingresos, DGI) or a qualified Panamanian tax advisor, and see our general notes on crypto taxes. Nothing here is tax advice.

Anti-money-laundering compliance is the most concrete area of crypto regulation in Panama today. Law 23 of 2015 and related AML and counter-financing-of-terrorism legislation set out the obligations for regulated entities, including registration as an obligated subject, customer due diligence (KYC), ongoing transaction monitoring, record-keeping and reporting of suspicious activity to the UAF. Crypto businesses that fall within the virtual-asset-service-provider concept are generally expected to apply these measures.

This focus on AML reflects Panama's wider international standing. Panama was placed on the FATF "grey list" of jurisdictions under increased monitoring, then removed from that list in October 2023 after completing its action plan; it has since strengthened its AML framework. The practical takeaway for users is that reputable platforms serving Panama will ask for identity verification and may decline anonymous or unusually structured transactions, and that this expectation is likely to increase rather than relax if a dedicated VASP law is enacted.

Residents and visitors can buy and sell crypto through international exchanges, peer-to-peer marketplaces and over-the-counter desks. Panama's heavy use of the US dollar makes funding and pricing straightforward, since major platforms quote in dollars. A typical purchase involves choosing a reputable platform that serves Panama, completing identity verification (usually a passport or national ID), funding the account, placing an order after reviewing fees and the quoted spread, and then securing meaningful holdings in a wallet you control, ideally a hardware (cold) wallet with the recovery phrase backed up offline and never shared.

A few Panama-specific practicalities matter. Banks may apply their own policies to crypto-related transfers, and reporting suggests some banks and prosecutors have scrutinized peer-to-peer crypto activity, so expect friction on bank rails. Bitcoin ATMs exist, concentrated mainly in Panama City, but the network is small and changes over time, and machine fees and spreads are usually higher than online exchanges; check a live ATM locator before relying on one. Crypto can also be used for cross-border remittances, where Bitcoin and dollar-pegged stablecoins can move value quickly and sometimes more cheaply than traditional wires, though volatility (for Bitcoin), on- and off-ramp conversion costs, and AML/KYC checks all apply. Prefer established services with transparent fees, keep your own records for tax and banking purposes, and be wary of anything that promises to skip identity checks. This is general information, not an endorsement of any platform.

No law specifically bans or licenses cryptocurrency mining in Panama, so mining is generally permissible. It sits within ordinary rules that were not written for it, including electricity supply and tariffs, company registration, import requirements for hardware, and any applicable environmental and zoning considerations.

Energy is the decisive factor. Panama has significant hydroelectric generation plus growing solar and wind capacity, which in principle could support lower-carbon mining, but electricity pricing, grid access and the availability of suitable industrial sites determine whether an operation is economically viable. There is no special crypto-mining electricity tariff or incentive enshrined in law as of 2026; commentary about encouraging renewable-powered mining remains aspirational rather than codified. Anyone considering a commercial operation should model power costs carefully, confirm the legal basis for their electricity arrangement, and seek advice on business, customs and environmental obligations before committing capital.

The most visible 2025 development was at the municipal level. In April 2025 Panama City announced it would accept Bitcoin, Ether and the stablecoins USDC and USDT for taxes, fees, tickets and permits, making the capital one of the first public institutions in the country to take crypto for government payments. Crucially, the city implemented this WITHOUT new national legislation: a partner bank instantly converts the received crypto into US dollars so the municipality still receives dollars, satisfying the legal requirement that public payments be made in the national currency.

At the national level, Bill 247 was introduced in March 2025 and, per reporting, was referred to a subcommittee for further analysis in late 2025; it remains pending and unenacted as of 2026. In parallel, Panama continued to consolidate its post-FATF-grey-list AML reforms. The overall direction is gradual, AML-conscious formalization rather than prohibition, but no comprehensive crypto statute has yet taken effect, so always confirm the current status against the official sources below.

The central theme for Panama is regulatory uncertainty. Because there is no consolidated crypto statute in force, users rely heavily on platform-level protections and general financial rules, and the legal treatment of specific activities can be unclear. Key risks to keep in mind:

• Limited consumer recourse: without crypto-specific protections, losses from fraud, hacks or platform failure may be hard to recover, and there is no deposit-insurance-style backstop for crypto holdings.
• Legal change: new legislation could alter how crypto is taxed, who must be licensed, and what disclosures are required.
• Market volatility: token prices can swing dramatically, so treat any allocation as high-risk capital you can afford to lose.
• Banking friction: financial institutions may restrict or scrutinize crypto-related transfers.
• Fraud: beware guaranteed-return schemes, unsolicited investment offers and platforms that discourage withdrawals; these are common signs of a scam.

The SBP and SMV have publicly cautioned that crypto activities have historically fallen outside their direct supervision, which underscores the importance of self-protection: use reputable services, secure your own custody, document your activity, and consult licensed professionals. See our regulation hub for related country guides.

Crypto rules in Panama are actively evolving, so always confirm the current position with primary, official sources rather than secondary summaries. The most relevant official bodies and their websites are:

• Unidad de Analisis Financiero (UAF), for AML registration and reporting obligations.
• Superintendencia de Bancos de Panama (SBP), for banking supervision and public risk warnings.
• Superintendencia del Mercado de Valores (SMV), for securities and investment-offering matters.
• Direccion General de Ingresos (DGI), for tax administration.
• Asamblea Nacional de Panama, to track the status of Bill 247 and other legislation.

This article is general information as of 2026 and is NOT legal, tax or financial advice. Laws and proposals may have changed since publication; verify your specific situation with the named official regulator (for AML matters, the UAF; for tax, the DGI) or a qualified Panamanian professional before acting.

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