What is Panama's FATF status?

Panama is classified by FATF as: fsrb_only.

Are VASPs licensed in Panama?

Yes — licensing is required for VASPs.

What is the AML/KYC regime in Panama?

KYC is mandatory for crypto businesses.

🇵🇦 Panama

Panama has a clear legal framework for cryptocurrency under the Crypto Regulation Law (2022), positioning itself as a crypto-friendly jurisdiction with established banking supervision and AML controls.

Overview

Status	Legal
Risk Score	35/100 (Moderate Risk)
Region	central america
Currency	PAB

Tax Information

VAT on Crypto

The regulator page does not specify detailed crypto tax rates or rules, but VAT does not apply to crypto transactions.

Licensing & Registration

Required	Yes
Regulator	SBP / SMV
Framework	Crypto Regulation Law (2022)
Ease	medium

Licensing is required under the Crypto Regulation Law (2022) with a medium difficulty process.

Enforcement Activity

Level: Low

Limited enforcement. General AML monitoring by banking regulators.

AML / KYC

KYC Required	Yes
Travel Rule	Yes
FATF Member	No
FATF Status	fsrb_only
FATF Body	GAFILAT
Suspicious-Activity Reporting	Yes

DeFi, Stablecoins & NFTs

Status: regulated

DeFi activities are regulated under the Crypto Regulation Law, ensuring compliance with AML and licensing requirements.

Stablecoins

Status: regulated

Stablecoins are regulated under the general framework established by the Crypto Regulation Law (2022).

NFTs

Status: no_rules

No regulation.

Mining

Legal	Yes
Electricity Cost	$0.12/kWh
Renewable Energy	70%
Infrastructure	good

Mining is legal with favorable electricity costs and a high share of renewable energy, supporting sustainable operations.

Geopolitical Risk

Stability	stable
Sanctions	No
Corruption Index	37/100
Banking Access	open

Risk Factors

capital controls risk due to regional instability

Panama is politically stable with no international sanctions, moderate corruption, and a supportive environment for crypto businesses with open banking access.