- Panama exempts crypto capital gains under territorial tax rules, drawing investors and miners to cost-efficient operations.
- Panama City partners with Towerbank to accept crypto for taxes, testing digital asset integration without legal tender status.
Panama has not banned Bitcoin or other cryptocurrencies, instead integrating digital assets into parts of its economy through targeted regulatory projects. A partnership between Panama City’s Municipal Council and Towerbank now allows residents to pay local taxes using cryptocurrencies, signaling gradual adoption without formal legal tender status.
Tax Incentives and Regulatory Projects
The country applies a territorial tax system, exempting capital gains from crypto transactions. This policy, combined with proposed legislation like Law No. 129, aims to create licensing frameworks for virtual asset service providers. The law would formalize the use of stablecoins and other digital assets within Panama’s financial systems, though full parliamentary approval remains pending.
Bitfinex analysts recently noted Panama’s appeal to crypto entrepreneurs, particularly smaller firms deterred by stricter regimes like Singapore’s. “Flexibility could attract global projects,” the exchange stated, cautioning that long-term success depends on balancing open policies with regulatory oversight.
Is Panama quietly becoming Latin America’s new crypto capital?
Regulatory clarity, zero capital gains on crypto, and Bitcoin tax payments in Panama City are turning heads. Entrepreneurs and digital nomads are flocking in.
📖 Read more in our blog:https://t.co/ek8TfQa3ke pic.twitter.com/Ckh52FWLRh
— Bitfinex (@bitfinex) May 2, 2025
Panama imposes no specific restrictions on cryptocurrency mining, allowing individuals and businesses to operate without specialized permits. Coupled with zero capital gains taxes, this openness has drawn miners and traders seeking cost-efficient environments. Local and international platforms facilitate buying, selling, and storing digital assets, though broader retail adoption progresses slowly.
While Panama avoids the volatility of adopting Bitcoin as legal tender—a move that destabilized economies like El Salvador—its approach prioritizes incremental integration. The focus on municipal tax payments and enterprise-friendly rules contrasts with regional peers embracing broader consumer-centric crypto reforms.
For now, Panama’s strategy centers on attracting business investment rather than mass public use. Whether this measured tactic secures its place as a crypto hub hinges on implementing clear regulations without stifling the flexibility that defines its current appeal.
