Why Crypto Enthusiasts Should Visit Panama

Panama (and especially its capital, Panama City) is still off the radar for many crypto enthusiasts. And that is surprising, considering its potential as a major regional hub for digital assets. 

The city blends:

• Tropical climate
• Rich history
• Progressive approach to digital technologies 

Panama City attracts expats and tourists not just for its iconic canal and beaches, but also for its fast-growing crypto ecosystem, supported by flexible regulation and a vibrant local community.

Here is why Panama stands out as a true crypto gem and what visitors can expect to discover.

Why Panama Became the Crypto Hub of Central America

Panama City stands out for its liberal regulatory approach and a culture that embraces innovation. Together, these factors create fertile ground for the development of crypto ventures.

Crypto Regulation and Laws in Panama

Panama follows a liberal approach to cryptocurrency. There are no specific laws regulating digital assets, which gives users and businesses broad freedom in how they engage with them. 

• In 2018, the Superintendence of Banks stated that cryptocurrencies do not fall under its jurisdiction. Moreover, the Superintendence of the Securities Market added that digital assets are not classified as securities, so activities involving them do not require a license.

• In 2022, the National Assembly passed Bill No. 697 to recognize cryptocurrencies as a form of payment. However, the president later vetoed the bill, raising concerns about transparency.

• Taxation on cryptocurrency income in Panama remains minimal. Individuals do not pay capital gains tax on crypto transactions unless those activities qualify as commercial business. 

• Companies are subject to a 25% tax on net profits. However, Panama applies a territorial tax system, which means income earned outside the country is not taxed. 

According to Legal Solutions Panama, registering a crypto company is a simple process. Establishing a legal entity costs between $1,000 and $1,500, with no special licensing requirements.

However, the most forward-looking initiative in terms of integrating virtual assets into Panama’s financial system is the “Panama Crypto Hub” bill, submitted for consideration on March 27, 2025. The bill aims to legalize crypto payments and attract blockchain companies through potential tax incentives. 

If passed, it would significantly strengthen Panama City's position in the race to become the crypto capital of Latin America, competing with cities like San Salvador.

The proposal builds on lessons from earlier efforts, offering appealing incentives for large businesses. Still, some critics view the approach as overly cautious due to the absence of clear government endorsement for cryptocurrencies.

For a closer look at the most crypto-friendly jurisdictions, explore our article: The Top Crypto-Friendly Countries.

Cultural Roots of Crypto in Panama

Panama City has long served as a hub for international trade, shaped by the influence of the Panama Canal. This background has created a culture that is open to innovation and new technologies.

Crypto payments have been part of the city’s landscape since at least 2014, when the Café Unido chain in Casco Viejo began accepting Bitcoin. What began as a bold move by a few café owners has grown into a local tradition. Today, both residents and expats use crypto for fast and affordable transactions, sidestepping bank fees. 

Panama is now one of the regional leaders in crypto adoption, a sign of its strong digital culture. At the same time, broader public use is still driven mainly by progressive groups such as entrepreneurs, expats, and younger generations. 

Some surveys suggest that interest in cryptocurrency is on the rise, although reliable data on ownership remains scarce. Local media frequently cover crypto developments, helping to spark public conversations and draw in new audiences.

Panama’s status as a tax haven continues to attract crypto entrepreneurs. Furthermore, the widespread use of English and a strong local community make the environment more accessible for adoption. 

Universities such as the Universidad Tecnológica de Panamá offer elective courses on blockchain, preparing students for careers in the industry. 

While events like Panama Blockchain Week are less frequent than in larger hubs like Miami, they are gaining momentum and attracting growing interest.

Crypto-Friendly Spots and Opportunities for Crypto Expats

Panama City features a growing number of locations where cryptocurrency is part of daily life. 

The city offers the infrastructure needed to store, spend, and engage with digital assets, making it an attractive destination for digital nomads and travelers:

1. In the Casco Viejo district, several businesses have begun accepting Bitcoin. Tantalo, a restaurant located on Calle 8 Este, is testing crypto payments and offers menu items that can be paid for in stablecoins. 
2. At the Multiplaza Pacific mall (Via Israel), many retailers, including jewelry shops, work with Panacrypto to process payments in cryptocurrency, making it easier for shoppers to use digital assets in everyday purchases.
3. Bitcoin ATMs are available throughout the city’s main districts. According to CoinATMRadar, as of April 2025, Panama City hosts approximately 37 machines, with the highest concentration in Bella Vista and Obarrio. These ATMs allow users to convert crypto to US dollars, typically charging a 5–7% fee. 
4. Panacrypto provides escrow-based exchange services, adding a layer of security to transactions involving high-value assets such as vehicles and real estate.
5. Panama City also features a lot of exchange offices where both fiat and cryptocurrencies are accepted. These locations allow users to convert Bitcoin or stablecoins into cash within minutes.
6. Towerbank, located in Marbella (Calle Aquilino de la Guardia), offers accounts specifically for crypto-related activity.

Communities and employers in Panama City actively seek professionals with experience in crypto. 

The city has become a launchpad for nearly ninety blockchain startups, including projects focused on real estate tokenization. For professionals specializing in decentralized networks, the city offers numerous career opportunities.

To explore where you can earn a Web3 developer certification, read our feature: Best Blockchain Courses to Boost Your Career in Web3.

Tips for Visiting Panama City

Panama City offers a unique mix of crypto innovation and tropical charm. Here is what to know about housing and key attractions.

Most Expensive and Most Affordable Neighborhoods

Rental prices vary depending on the area. 

Punta Pacifica, Marbella, Balboa Avenue, Casco Viejo, and Costa del Este are among the city’s most upscale neighborhoods. A 20-square-meter studio in one of these locations can range from $1,500 to $2,500 per month. In return, expect a high-rise apartment with sweeping ocean views. 

El Cangrejo and Calidonia are more budget-friendly neighborhoods. A one-bedroom apartment in these areas typically rents for $600 to $800. These districts are especially popular with young professionals, artists, and expats who value their charm and walkable access to the city center.

Panama’s climate is subtropical. The rainy season runs from May to November and brings high humidity. Temperatures often reach 30°C (with daily downpours). The dry season, from December to April, is more comfortable, with rain rarely falling more than once a week and daytime highs around 25°C. 

So, be sure to pack sunscreen and a hat. 

Popular Tourist Destinations in Crypto Panama

Panama City is rich with places to explore. One of the most popular areas for visitors is Casco Viejo, also known as the Old Quarter or San Felipe. This UNESCO World Heritage Site is known for its colonial architecture, narrow cobblestone streets, and lively nightlife. 

The neighborhood is home to historic landmarks, art galleries, boutique hotels, and trendy cafés.

Additionally, Panama City offers several must-see attractions:

• Panama Canal: An architectural landmark with a museum and the Miraflores Locks
• Amador Causeway: Islands with sweeping views of the bay 
• Metropolitan Natural Park: A tropical forest with hiking trails 
• Cinta Costera: A waterfront promenade with panoramic views of the skyline.