Crypto License in Panama or Lithuania?
Total over 500 licenses completed by Consulting24 Team
Consulting24 CEO: Mr. Mardo Soo
Panama vs. Lithuania: A Comprehensive Comparison of Crypto Licensing
When comparing Panama and Lithuania for cryptocurrency licensing, both countries offer unique advantages depending on the business's needs. Panama, with its short application time (21–28 days), no capital requirement, and 0% corporate and dividends tax, provides a cost-effective and rapid way to obtain a crypto license. Additionally, the initial license cost is only €5,000, making it an appealing option for startups and businesses looking to launch quickly.
On the other hand, Lithuania has a more established and mature regulatory environment, offering higher legal certainty due to its alignment with EU regulations. However, Lithuania imposes a capital requirement of up to €350,000 and a 5% corporate tax on crypto activities, with a license costing around €20,000. The process can take 1–2 months, which is longer than Panama’s timeframe.
Recommendations
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If you're starting out or launching soon, Panama is the better choice for a quick and cost-efficient setup. Its 0% tax rates, no capital requirements, and fast application process make it ideal for smaller or early-stage companies that need an easy and affordable entry into the crypto space.
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For more established businesses looking for greater regulatory certainty and access to the European market, Lithuania may be the better option. Its stringent AML and KYC regulations, combined with EU compliance, provide stronger legal and operational backing, but it comes with higher costs and longer setup time.
Schedule a meeting for more information about the Panama and Lithuania crypto licenses.
Our Clients
Requirements for a Crypto License in Panama
To obtain a cryptocurrency exchange license in Panama, companies must meet the following key requirements:
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Register a Legal Entity: Establish a legal entity in Panama under the category of Specialized Financial Institutions (SFI).
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Obtain a Commercial License: Secure a commercial license and ensure the company is registered with the public registry.
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Website Disclosure: Ensure the company website discloses essential information such as the commercial name, office address, domain names, contact email addresses, terms of use, and privacy policy.
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Regulator Notification: Notify the regulatory authority about the business purpose and collect all legally required customer information.
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Submit Business Model and Plan: Provide a detailed description of the business model, a comprehensive three-year business plan, and a list of the intended services the company will offer.
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Submit Personal Data: Submit copies of personal documents, CVs, and criminal records for all owners and directors.
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Board of Directors: Ensure the company has a minimum of three directors.
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Technical Equipment and Financials: Present a technical equipment report along with a bank statement confirming sufficient operational finances to sustain the business.
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Customer Due Diligence: Establish and implement customer due diligence procedures, especially for high-risk transactions, and report accordingly.
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AML/KYC Compliance: Adhere to anti-money laundering (AML) and know-your-customer (KYC) regulations by developing internal policies to monitor and control transactions effectively.
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Documentation Submission: Complete and submit all necessary documentation for the company’s registration and licensing process.
Book a meeting for Panama crypto license info.
Why Consulting24?
500+ licenses completed by Consulting24 team.
Team
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Mardo Soo
"Our experience consistently highlights that Lithuania's licenses stand unparalleled in the crypto industry. It's the preferred choice for forward-thinking enterprises aiming for growth and compliance."
Lena Elvbakken
"Lithuania's licenses have proven to be the gold standard, especially with a swift setup time of 30-60 days. This efficiency, coupled with robust regulations, makes it the top choice for visionary enterprises.
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