PANAMA Trends and Developments Contributed by: Kharla Aizpurua Olmos, Roberto Vidal, Miguel Arias and Eduardo Oteiza, Morgan & Morgan
Market Overview and Trends Panama is taking meaningful steps towards a clearer regulatory framework for fintech, virtual assets and blockchain-based business models. Because these technologies cut across multiple sectors, namely payments, lending, capital markets and compliance, any regulatory approach must balance innovation with consumer protection, market integrity and effec - tive anti-money laundering (AML) safeguards. As the growth of digital finance continues to accelerate, driven not only by crypto and tokenisation but also by data and artificial intelligence (AI), jurisdictions are increasingly expected to modernise their rules and provide greater legal certainty. In that context, Pana - ma’s evolving initiatives aim to level the playing field by clarifying how fintech activities are supervised and how virtual assets, cryptocurrencies and the broader digital economy fit within the legal landscape. This is particularly important in Panama, where the economy is largely financial services‑based and closely linked to an international banking centre. For Panama, the most important prerequisite for a workable fintech framework is a strong, risk‑based AML regime that prevents the misuse of financial services and safe - guards the financial system from illicit use. Clarity over what to expect in this area builds confidence among users, incumbents and regulators, creating the condi - tions for fintech adoption to scale responsibly. As of early January 2026, Panama’s National Assem - bly is considering multiple legislative initiatives intend - ed to bring greater legal certainty to fintech-related activities, including virtual assets and other digital- economy use cases. There are approximately seven bills that have been drafted and presented in the leg - islative chamber, each at different stages, but so far none has been enacted as a law. Some of these pro - posals seek to create a supervisory and registration framework for virtual asset service providers (VASPs) and to align local rules with international AML expec - tations. However, all these initiatives should strive to create an integrated framework for regulating the area, and the hope is to have laws enacted that serve to address the main areas but continue to enable growth in the sector and do not create unnecessary barriers. Even in the absence of a dedicated “Fintech Law”, Panama has already enacted a set of laws that can
function as the foundational legal baseline for fintech operations in the future. Most notably, Law 23 of 2015 serves as Panama’s core AML framework and applies, through different categories, to supervised financial entities, non-financial reporting entities and certain professional activities, establishing risk-based pre - vention duties and related compliance expectations. Additionally, Law 42 of 2001 regulates the operations of financial companies that offer loans or financing facilities to the public, and Law 48 of 2003 regulates money remittance operations, including authorisation requirements through the competent authority. Finally, depending on the activity and product offered, sector- specific regimes may apply (such as banking, insur - ance, securities or insurance), meaning that many fintech models must be assessed within the existing perimeter of regulated financial activities, even before a fintech-specific statute is widely adopted. The following are some of the most notable draft bills currently being discussed in the National Assembly. 1. Draft Bill 247 of 2025, which aims to establish the regulatory framework for the use of cryptocurrencies and foster the digital economy in Panama Draft Bill 247 of 2025 was brought forward by the Commerce and Economic Affairs Commission in April 2025 and remains under legislative considera - tion. In Panama, a bill must be approved through three debates in the National Assembly before it is sent to the Executive Branch for presidential sanction or veto. Substantively, the bill proposes a legal framework to regulate the use, commercialisation and supervision of cryptocurrencies in Panama, applying to all persons engaged in crypto-related activities in the country, and it defines core concepts including cryptocurrency, stablecoin, blockchain, smart contracts, security and utility tokens, non-fungible tokens (NFTs) and VASPs. Its stated objective is to anchor the regime on guiding principles such as legal certainty, innovation, transpar - ency and accountability, financial inclusion, alignment with international standards, consumer protection and technological neutrality. To achieve these goals, the bill would introduce the National Council of Digital Assets (CONAD) as the governing body in charge of co-ordinating crypto
608 CHAMBERS.COM
Powered by FlippingBook