🇵🇦Panama

Detailed overview

Panama at a glance

Panama is a US-dollarised, territorial-tax hub whose verticals sit at different stages. Crypto is legal but unregulated: no dedicated law, the SBP and SMV place it outside their remit (and confirm it is not a security), and it is treated as movable property — but AML/CFT applies under Law 23 of 2015 (UAF). A framework has repeatedly stalled (Bill 697 struck down as unconstitutional in 2023; bills 247/326 pending), and Panama joined the OECD CARF in December 2025 (reporting from 2027). Payments rest on bank and money-remittance licensing, with no EU-style e-money regime and no central bank. Gambling is mature: the JCJ has licensed land-based casinos since 1998 and online gaming since 2002, issuing seven-year online master licences with worldwide reach.

Crypto regime — legal but unregulated, framework repeatedly stalled:

• No dedicated crypto law — under the constitutional principle that what is not expressly prohibited is permitted (Article 18), crypto can be used by mutual agreement and is treated as movable/intangible property under the Civil Code; it is not legal tender (the US dollar and balboa are)
• Regulators' position — the SBP and SMV have stated crypto falls outside their scope and requires no licence; the SMV confirmed (Opinion 5-2023) that crypto and its derivatives are not securities under Decree Law 1 of 1999
• AML still applies — virtual-asset businesses within the AML perimeter must comply with Law 23 of 2015 (CDD, recordkeeping, suspicious-transaction reporting), with the UAF as the Financial Intelligence Unit and the Intendencia supervising non-financial reporting entities; banks apply rigorous source-of-funds checks
• Legislative history — Bill 697 (2021) passed the National Assembly in 2022, was partially vetoed, and was declared unconstitutional by the Supreme Court in July 2023; Bill 247 (introduced March 2025) and a later Bill 326 propose mandatory VASP registration, a digital-asset council and a special tax regime, but remain under discussion and are not enacted
• International alignment — Panama joined the OECD Crypto-Asset Reporting Framework (CARF) in December 2025, with data exchange expected from 2027
• Adoption signals — the Municipality of Panama authorised crypto for municipal taxes and fees in 2025 (converted to US dollars by a financial institution), and the government has signalled a fintech-friendly, regional-hub ambition
• Tax — a territorial system: foreign-sourced income (including offshore crypto trading via a Panamanian entity) is generally not taxed in Panama; locally-sourced crypto income falls under the general income-tax regime

Payments and e-money regime (bank- and remittance-led; fully dollarised):

• Banking — the SBP licenses banks (general and international licences); Panama is a major international banking centre
• Money remittance — remittance businesses are licensed (MICI) and subject to AML/CFT supervision
• No EU-style e-money/payment-institution licence — Panama has no dedicated EMI regime; payment and fintech activity operates under general commercial, banking and AML rules, often in partnership with banks
• No central bank — Panama uses the US dollar as legal tender (the balboa is pegged 1:1 and circulates only as coins); the Banco Nacional de Panamá provides clearing, and there are no exchange controls
• AML/CFT — Law 23 of 2015, the UAF and the Intendencia for non-financial reporting entities
• Currency: the US dollar (and balboa, 1:1); no exchange controls

Gambling regime — mature, established, online-friendly:

• Junta de Control de Juegos (JCJ) — the Gaming Control Board under the Ministry of Economy and Finance, regulating and supervising all gambling; the modern framework derives from Gaming Decree Law No. 2 of 1998 (which legalised and licensed gambling) and the 2002 online-gaming regime (Resolution No. 65 / the Online Gaming Law), updated since
• Online master licence — operators enter an administration/operation contract with the JCJ and hold a master licence (valid up to seven years), allowing B2C and B2B operation across online casino, sports betting, poker and other games, with worldwide reach; the system remains subject to JCJ regulation even where elements operate outside Panama
• Fees and tax — an initial online licence fee of around USD 40,000 and an annual fee of around USD 20,000, sub-licences available, mandatory financial guarantees, and gaming tax (broadly around 10% of gross gaming revenue for online; land-based subject to its own gaming taxes)
• Substance — a Panamanian company, a local office/presence, fit-and-proper directors, a Panama bank account, monthly financial statements, AML/CFT, technical/RNG certification, and responsible-gambling and minor-protection controls
• Land-based — casinos (privatised in 1997, typically within resort hotels), slot halls, bingo halls, a racetrack and the national lottery
• Panama has issued online gaming licences for over two decades and positions itself as a gaming hub for Central America and the Caribbean

Last verified: May 2026. Reference rate: USD 1 = USD 1.00 (PAB 1.00). Panama uses the US dollar as legal tender; the balboa is pegged 1:1 and circulates only as coins. Panama has no central bank and no exchange controls.

Panama inverts the usual offshore pattern: it is light on crypto (legal but unregulated, with a framework repeatedly stalled and only AML obligations applying) yet strong on gambling (a mature JCJ regime licensing land-based casinos since 1998 and online gaming since 2002, with worldwide-reach master licences) — all in a fully dollarised, territorial-tax economy with no central bank and no exchange controls.

Is there a crypto licence in Panama?

Not yet. Crypto is legal but unregulated: there is no dedicated law and no VASP or crypto licence, and the SBP and SMV have placed crypto outside their remit (and confirmed it is not a security). Businesses still face AML/CFT obligations under Law 23 of 2015. A comprehensive framework has repeatedly stalled — Bill 697 was struck down in 2023, and bills 247 and 326 remain under discussion.

The legal foundation:

• Constitution (Article 18) + Civil Code — crypto permitted by mutual agreement; treated as movable property
• Law 23 of 2015 — AML/CFT obligations for in-scope businesses (UAF; Intendencia for non-financial entities)
• SMV Opinion 5-2023 — crypto and derivatives are not securities
• Pending bills (247, 326) — proposed VASP registration/licensing and a digital-asset council (not enacted); CARF from 2027

Structure:

• A Panamanian company (commonly a Sociedad Anónima) under general commercial law; no crypto licence to apply for
• Where within the AML perimeter, registration and compliance as a reporting entity (CDD, recordkeeping, reporting)
• Robust banking source-of-funds diligence in practice; offshore-only structures rely on the territorial tax regime

Operational reality:

• Panama offers operational freedom (legal crypto, fast incorporation, full dollarisation, foreign-income tax exemption) but no regulatory licence or "badge", which can limit banking and counterparty acceptance
• The window for unregulated activity is narrowing — pending bills and CARF point toward a future FATF-aligned VASP regime, so structuring with future requirements in mind is prudent
• Panama authorisations (when they exist) would not passport into the EU (a MiCA CASP authorisation is separate); independent Panamanian legal and tax counsel is essential

Payments & E-money (SBP — banking; MICI — money remittance)

Best for banking, money-remittance and fintech businesses comfortable operating in a fully dollarised market under bank and remittance licensing; Panama has no EU-style e-money licence and no central bank.

What it is: A bank- and remittance-led regime — the SBP licenses banks (general and international), and money-remittance businesses are licensed (MICI) and AML-supervised — within a fully dollarised economy with no central bank and no exchange controls.

Who it suits: Banks, money-remittance and FX businesses, and fintechs operating through banking partners; crypto payment models operate under general commercial and AML rules (no dedicated licence).

Covers: Banking and deposit-taking, money remittance and FX; there is no separate e-money/payment-institution licence, and stored-value/stablecoin activity is unregulated beyond AML.

Operational requirement: A Panamanian entity; an SBP bank licence or MICI remittance licence as applicable; AML/CFT (Law 23 of 2015); fit-and-proper management; SBP/Intendencia supervision; use of the US dollar.

Headline figures

• Primary instruments: Banking Law (SBP); Law 48 of 2003 (money remittance); Law 23 of 2015 (AML)
• Regulators: SBP (banks); MICI (remittance); UAF/Intendencia (AML)
• Authorisation: bank licence or money-remittance licence (no separate e-money/payment-institution licence)
• Monetary system: fully dollarised; no central bank; no exchange controls
• Tax: territorial — foreign-sourced income not taxed in Panama
• Currency: US dollar (balboa 1:1, coins only)

Is there a gambling licence in Panama?

Yes — a mature, established one. The Junta de Control de Juegos has regulated land-based gambling since 1998 and online gaming since 2002, issuing online master licences (valid up to seven years) that allow operators to serve players worldwide, plus sub-licences and land-based concessions.

The legal foundation:

• Gaming Decree Law No. 2 of 1998 — legalised and licensed gambling; established the JCJ's powers
• 2002 online-gaming regime (Resolution No. 65 / Online Gaming Law) — licensing of electronic/online games of chance
• JCJ regulations — administration/operation contracts, technical standards, AML/CFT and player protection
• Law 23 of 2015 — AML/CFT for the sector

Structure:

• Online master licence — via an administration/operation contract with the JCJ; B2C and B2B; online casino, sports betting, poker and more; worldwide reach; up to seven years; sub-licences available
• Land-based concessions — casinos, slot halls, bingo halls, racetrack and the national lottery
• Substance — Panamanian company, local presence, fit-and-proper directors, financial guarantees, technical certification
• Minimum-age, AML/CFT and responsible-gambling controls apply

Gambling — Online Master Licence & Land-Based Concessions (JCJ; Law No. 2 of 1998 and the 2002 online regime)

Best for online operators and suppliers seeking an established, worldwide-reach Latin American licence, and land-based casino operators; less suited to those needing an EU-recognised brand licence.

What it is: A JCJ online master licence (via an administration/operation contract) for online games of chance, or a land-based concession for casinos, slots and bingo, with substance, AML/CFT and technical-certification requirements.

Who it suits: Online casino, sportsbook, poker and B2B operators wanting worldwide reach and a long-standing regime, and land-based casino/slot/bingo operators; not those requiring EU/UK market recognition.

Covers: Online casino, sports betting, poker and other online games of chance (master and sub-licences); land-based casinos, slot halls, bingo and lottery.

Operational requirement: A Panamanian company; an administration/operation contract and master licence (or land-based concession); local presence and fit-and-proper directors; financial guarantees; AML/CFT; technical/RNG certification; responsible-gambling and advertising compliance; gaming-tax payment.

Headline figures

• Primary instruments: Gaming Decree Law No. 2 of 1998; the 2002 online-gaming regime; JCJ regulations
• Regulators: Junta de Control de Juegos (JCJ); UAF (financial intelligence)
• Fees: online master licence ~USD 40,000 initial (up to seven years) + ~USD 20,000 annual; sub-licences available; financial guarantees required
• Tax: gaming tax (broadly around 10% of GGR for online; land-based gaming taxes apply); foreign-sourced income not taxed under the territorial system
• Reach: worldwide operation permitted; over two decades of online licensing
• Player protection: age controls, AML/CFT, technical certification, responsible gaming

Costs and timelines at a glance

• Crypto: no licence (legal but unregulated); AML/CFT compliance under Law 23 of 2015 (UAF/Intendencia) where in scope; SMV confirms crypto is not a security; Bill 697 unconstitutional (2023), bills 247/326 pending; CARF from 2027; territorial tax (foreign income exempt); fast incorporation
• Payments primary instruments: Banking Law (SBP); Law 48 of 2003 (remittance); Law 23 of 2015 (AML)
• Payments regulators: SBP (banks); MICI (remittance); UAF/Intendencia (AML) — no separate e-money/payment-institution licence
• Monetary system: fully dollarised; no central bank; no exchange controls
• Reform pipeline: pending crypto bills (247/326) toward a FATF-aligned VASP regime; CARF reporting (2027)
• Gambling: JCJ regime (Law No. 2 of 1998; 2002 online regime); online master licence (~USD 40,000 initial / ~USD 20,000 annual; up to seven years; sub-licences; ~10% GGR gaming tax); land-based concessions; worldwide reach; established 20+ years
• Currency: US dollar (balboa 1:1, coins only); no exchange controls
• FX: USD 1 = USD 1.00 (PAB 1.00)

Who Panama suits and who it does not

Suitable for

• Online gambling operators and B2B suppliers seeking an established, long-standing, worldwide-reach Latin American licence (JCJ online master and sub-licences), plus land-based casino/slot/bingo operators
• Crypto businesses comfortable operating without a licence in a legal-but-unregulated environment, using a Panamanian entity for offshore activity under the territorial tax system, while meeting AML obligations and preparing for a future VASP regime
• Banking, money-remittance and FX businesses able to license with the SBP or MICI and operate in a fully dollarised market with no exchange controls
• Groups valuing US-dollar legal tender, a territorial tax system (foreign-sourced income untaxed), fast incorporation and a regional Central American/Caribbean hub
• Token-issuance and structuring vehicles where the absence of crypto-specific licensing, combined with movable-property treatment and AML compliance, suits the business model

Not suitable for

• Crypto firms wanting a recognised, licensed regime and "badge" today — Panama has no crypto/VASP licence, only AML obligations, and a framework that has repeatedly stalled
• Crypto or payment businesses needing EU passporting or an EU-style EMI/payment-institution licence — Panama offers neither (a MiCA CASP authorisation is separate)
• Businesses needing strong banking acceptance for crypto — source-of-funds diligence is rigorous, and the lack of a licence can complicate banking and counterparty relationships
• Operators requiring EU/UK-recognised gambling licensing or direct EU consumer-market access rather than a worldwide-reach Latin American licence
• Firms uncomfortable with regulatory uncertainty — the pending crypto bills and CARF mean disclosure and (eventually) licensing requirements are set to increase