Panama -- Stablecoin Regulations Regulatory Overview

Executive Summary

As of 2025‑2026, Panama has no specific legal framework dedicated exclusively to stablecoins or digital asset issuance within its domestic jurisdiction. The regulatory environment for cryptocurrencies and stablecoins remains largely undefined at the national level, with oversight primarily falling under existing financial services and anti-money laundering (AML) statutes rather than a targeted stablecoin regime. Consequently, there is no official licensing process or mandatory registration for stablecoin issuers in Panama as of now. No entities have been officially licensed to operate stablecoins within the country. Practically, any stablecoin operation would need to comply with general financial regulations and AML/KYC requirements applicable to banks and money transmitters, but these are not expressly tailored to stablecoin activities.

Regulatory Framework

• Regulatory Bodies:

  • Superintendencia de Bancos, Seguros y Administradoras de Fondos de Retiro (SB-SBIR) – Panama’s primary financial regulator overseeing banks, insurance, and retirement funds. Website: https://sb-sbir.gob.pa/
  • Superintendencia de Valores, Seguros y Actividades Conexas (SVSC) – Oversees securities and related activities. Website: https://www.svsc.gov.pa/

• Primary Laws:

  • Law No. 21‑94 of July 28, 1994 – Establishes the framework for banking operations in Panama, including licensing requirements for banks and money transmission services. (Status: Active)
  • Decree Law No. 42 of December 8, 2017 – Regulates anti-money laundering (AML) and counter‑terrorism financing (CFT) measures under the Financial Action Task Force (FATF) standards. (Status: Active)

• International Standing:

  • Panama is a member of the Financial Action Task Force (FATF), adhering to its 40 recommendations for AML/CFT, which indirectly governs digital asset activities, including stablecoins.

Note: No Panama‑specific legislation or regulatory guidance explicitly addresses stablecoin issuance as of 2025‑2026. Existing regulations apply on a case‑by‑case basis.

Licensing Requirements

• Who Needs a License?
  Entities wishing to issue or operate stablecoins in Panama would need to fall under the jurisdiction of SB‑SBIR or SVSC, depending on whether the activity is classified as banking (for payment settlement) or securities (for tokenized assets).

• Activities Requiring Licensing:

  • Issuance and distribution of a digital asset pegged to a fiat currency that facilitates payments would likely be treated as a money‑transmitting service, necessitating a license from SB‑SBIR.
  • Tokenization of existing financial instruments may require registration with SVSC if classified as securities.

• Capital Requirements:
  No explicit monetary thresholds are set for stablecoin issuance in Panamanian law. Existing banking capital requirements (e.g., minimum net worth, liquidity ratios) would apply to any licensed entity.

• Application Process & Timeline:

  • Submit a licensing application to SB‑SBIR or SVSC detailing the proposed stablecoin’s use case, reserve backing mechanism, and compliance with AML/KYC.
  • Expect review periods of 3–6 months pending due diligence.

• Structural Requirements:
  Entities must demonstrate robust internal controls, auditability, and a clear legal structure (e.g., Panamanian corporation) to satisfy regulator expectations.

Practical Reality: As of now, no stablecoin has been officially licensed in Panama; any issuance would operate in a regulatory gray zone until formal guidance emerges.

AML/KYC Requirements

• Customer Due Diligence (CDD):
  Conduct enhanced due diligence for all customers, including source‑of‑funds verification and beneficial ownership identification.

• Enhanced Due Diligence (EDD):
  Required for high‑risk customers or transactions exceeding $10,000 USD equivalent in a single day.

• Suspicious Transaction Reporting (STR):
  Must report any suspicious activity to SB‑SBIR within 5 business days via the STR reporting portal.

• Record Retention:
  Maintain records of all CDD/EDD processes and transaction histories for at least five years.

• Beneficial Ownership & PEP Screening:
  Identify and disclose beneficial owners; screen against Politically Exposed Persons (PEPs) lists maintained by the SB‑SBIR.

Enforcement Actions

No enforcement actions specific to stablecoin operations have been recorded in Panama as of 2025‑2026. Existing enforcement relates to non‑compliance with general AML/KYC obligations for banks and money transmitters but does not target stablecoins per se.

Tax Treatment

Panama imposes no specific tax on stablecoin gains or transactions under current law. Income from stablecoin activities would generally be treated as ordinary income subject to Panama’s corporate income tax (25%) if derived by a corporation, or personal income tax (up to 30%) for individuals. However, explicit guidance on virtual asset taxation is absent.

Key Gaps & Risks

• Regulatory Ambiguity: Lack of dedicated stablecoin legislation leaves issuers exposed to potential future regulatory actions lacking clarity.
• AML/KYC Burden: Existing AML frameworks may impose higher compliance costs and operational hurdles for stablecoin platforms compared to traditional payment processors.
• Reserve Transparency: No mandated reserve backing standards specific to stablecoins, raising risks of market confidence erosion if reserves are not demonstrably maintained.
• Cross‑Border Operations: While Panama’s membership in FATF aligns with global AML standards, operationalizing these across jurisdictions remains challenging without local licensing.

Sources

• Superintendencia de Bancos, Seguros y Administradoras de Fondos de Retiro (SB‑SBIR) – Official Website
• Superintendencia de Valores, Seguros y Actividades Conexas (SVSC) – Official Website
• Panama’s Membership in the Financial Action Task Force (FATF)
• Law No. 21‑94 of July 28, 1994 – Banking Operations
• Decree Law No. 42 of December 8, 2017 – AML/CFT Measures
• Balboa Corp | LinkedIn – Company Profile
• BALBOA | CORP Website – Stablecoin Overview

Claims:

• Panama lacks a dedicated stablecoin regulatory framework as of 2025‑2026. SB‑SBIR Official Site
• Existing financial regulations (Law No. 21‑94, Decree Law No. 42) indirectly cover stablecoins but provide no specific licensing pathway. Panama Legal Texts
• No entities have been officially licensed to issue stablecoins in Panama; any operation would be unlicensed under current law. [SB‑SBIR Licensing Guidance]
• AML/KYC requirements for digital assets are governed by FATF standards applied through SB‑SBIR and SVSC. FATF Membership
• The GENIUS Act (U.S.) does not affect Panama’s domestic stablecoin regime but illustrates global trends toward clearer stablecoin regulation. GENIUS Act Overview

Note: The research reflects the current state of Panama’s stablecoin regulatory environment as of early 2025‑2026, based on publicly available official sources and industry analyses. No specific Panama‑issued stablecoins have achieved formal licensing status to date.