Panama Crypto License

Setting up a crypto business in Panama is relatively straightforward, but there are important legal requirements and corporate formalities to observe. Panama’s goal is to maintain its reputation as a compliant financial center while keeping entry barriers low. Key requirements include:
 

1. Local Company Incorporation – You must establish a Panamanian corporation, typically a Sociedad Anónima (S.A.), to operate a crypto business. Only a locally registered company can conduct such activities – foreign companies or individuals would operate through a Panama entity. A Panama S.A. is the most common vehicle and requires at least three directors by law. These directors can be of any nationality (natural persons or even legal entities) and do not need to reside in Panama. Shareholder requirements are flexible: 100% foreign ownership is allowed, with no residency restrictions on shareholders. (NUR Legal can assist by providing nominee directors if needed, ensuring you meet this requirement while maintaining control.)
    

2. Registered Address and Agent – Every Panama company must have a registered office in Panama and a licensed local registered agent. The registered agent (usually a local law firm or fiduciary services provider) is your official liaison with Panamanian authorities and is responsible for corporate filings. This is a formality – you are not required to maintain a staffed physical office, only a registered address for legal service. Through our Panama partners, NUR Legal provides a registered office address and acts as the local agent for your company, handling all necessary filings and official correspondence.
    

3. Business License & SFI Registration – Once the company is formed, it must obtain a commercial business license (often called an “aviso de operación”) to legally conduct its activities in Panama. This is a simple registration with the Ministry of Commerce to declare your line of business. Crypto activities in Panama currently fall under general commerce or financial services categories, but no special crypto permit is required. In practice, many crypto companies choose to register under the “Specialized Financial Institutions (SFI)” designation, which is essentially a classification under Law 129 allowing financial intermediation activities. Registering as an SFI places the company on the Superintendence of Non-Financial Entities (SSNF) registry of supervised entities, signaling to authorities that you will implement AML measures. Depending on the scope of your project, NUR Legal will advise whether an SFI registration or any specific notice to regulators is necessary. We handle the preparation of any required license applications or notifications to ensure your company is fully authorized to operate.
    

4. No Minimum Capital (But Adequate Funding) – Uniquely, Panama imposes no statutory minimum paid-in capital for companies. You can incorporate with a token capital (even USD 1 or one share). This lowers startup costs significantly, especially compared to jurisdictions that require hefty capital locks. However, for credibility and practical operation, it’s recommended to maintain a reasonable capital or reserve. Market practice is often to authorize a capital like USD 10,000 (which keeps government incorporation fees low) or to inject sufficient working capital once the company is active. Regulators do not mandate a fixed capital, but demonstrating financial soundness (e.g. having approximately USD 50,000 available for operational liquidity) is advisable, particularly when opening bank accounts. NUR Legal will guide you on optimal capital structuring – balancing legal requirements, bank expectations, and cost efficiency.
    

5. Directors and Officers – Panama corporations require a minimum of three directors and typically three officers (President, Secretary, Treasurer). In practice, the same three individuals can fill all director and officer positions to meet this rule. There is no local director requirement – all directors can be foreigners and non-resident. Still, each must provide identification and pass basic due diligence. If privacy is a concern or you lack additional persons, nominee director services can be employed. NUR Legal can arrange nominee directors and officers under strict agreements to protect your ownership while satisfying Panamanian law.
    

6. Articles of Incorporation – A Panama S.A. is formed by executing the Articles of Incorporation (also known as the Charter or Sociedad Anónima statutes). This document outlines the company name, purposes (which can be broad and should include crypto-related activities), share structure, directors, registered agent, etc. It must be filed with the Panama Public Registry. We ensure your Articles are drafted to explicitly allow cryptocurrency operations, token issuance, exchange services or any specific activity you plan. The Articles can be prepared in English or Spanish and must be notarized and apostilled for international use. NUR Legal drafts and files all incorporation documents, obtaining notarization and apostilles so you have globally recognized corporate papers.
    

7. Annual Maintenance – Panama companies must be renewed annually to remain in good standing. This involves paying the government’s annual franchise tax and registered agent fee, and updating any changes to directors or officers with the registry. There are no audited financial statements or complex reports required for standard Panama companies - administration is simple with minimal bureaucracy. However, each year the company should confirm its basic details. NUR Legal handles all annual renewals for your Panama entity – from paying government fees on time to updating director registers – ensuring your company status never lapses.
    

8. Compliance with AML/KYC – Because Panama does not yet impose specific crypto regulations, crypto companies are not currently subject to special crypto-specific AML oversight by a financial regulator. In other words, there is no crypto regulator conducting routine audits of your KYC or AML program as would happen in, for example, a licensed EU exchange. This regulatory light-touch is a major advantage for startups.
   
   However, Panama is a FATF-compliant jurisdiction, and general anti-money-laundering law (Law 23 of 2015) still applies. When you register as an SFI or if your activities involve financial intermediation, you become an obligated non-financial entity under the purview of the Financial Analysis Unit (UAF) and the SSNF. Practically, this means your company should internally implement standard AML and KYC policies, such as verifying customers, monitoring transactions, maintaining records, and reporting suspicious activity to the UAF. There is no mandated minimum compliance staff, but appointing a Compliance Officer internally is recommended to manage these duties. Many of these measures are also necessary to obtain banking services. NUR Legal provides templates and guidance for establishing a robust AML and CFT compliance program tailored to your Panama crypto business, even though it is not formally licensed. We help you adopt international best practices so that you operate responsibly and credibly from day one.