Nikita Veremeev
06.08.2025 | 6 min read
Updated: 06.08.2025
The year 2025 marks a record growth in the number of international crypto companies facing increased MiCA regulations in the EU, while interest in alternative jurisdictions rises. According to the European Blockchain Observatory, in just the past year, over 40% of crypto services in Europe revised their structures due to new CASP and DASP rules. Meanwhile, the number of company registrations in Panama for crypto business increased by 27% (data from the Panamanian Chamber of Commerce, 2024).
Why are entrepreneurs increasingly looking at Panama? Which choice provides a strategic advantage: stringent EU licensing or the flexibility of an offshore jurisdiction?
In this article, I will not only compare MiCA and Panama: you will receive a practical guide based on COREDO’s experience, with real scenarios, risks, and recommendations. If you’re looking for answers about licensing, AML compliance, scaling, and risk management, read on. Here you’ll find not only analysis but also strategic ideas for long-term growth.
MiCA Requirements for Crypto Business in the EU
MiCA (Markets in Crypto-Assets Regulation) is the most significant reform of virtual asset regulation in Europe, covering CASP, DASP, and all key aspects of blockchain compliance. For a legal entity registration in Europe now requires not only a standard incorporation procedure but also obtaining an EU crypto license (VASP/CASP), certification, implementing comprehensive AML procedures and KYC processes, as well as ensuring transparent financial reporting and minimum share capital (from €125,000 for most CASP).
Implementing MiCA required crypto companies to introduce new administration standards, regular audits and certifications, as well as a detailed risk management system. Our experience at COREDO showed: breaking into the EU market now requires not only legal support for crypto companies but also a deep restructuring of business processes to meet institutional investor standards. Without this, building trust with banks and attracting major investments is impossible.
Registering a Crypto Business in Panama
Panama for crypto business: above all, regulatory flexibility, minimal bureaucratic barriers, and quick company registration (2–4 weeks). For international crypto projects, Panama offers a unique combination: no mandatory crypto license, basic AML/KYC procedures, a flexible tax system, and the ability to legalize income through transparent offshore structures.
The solution developed at COREDO for clients targeting Panama includes configuring KYC and AML procedures according to international standards, organizing corporate governance, and optimizing Panama’s tax residency to reduce international taxation. Panama allows quickly scaling crypto services without sacrificing the safety of digital assets and financial transparency: provided a competent implementation of the risk management system.
MiCA or Panama – What Should Crypto Businesses Choose?
MiCA or Panama – what should crypto businesses choose?
This question is especially pressing today for companies needing to choose between the strict but transparent rules of the European Union and more flexible offshore regulations. Understanding the differences in licensing requirements will help make an informed decision on the most suitable jurisdiction for launching or relocating a crypto project.
Company Licensing Requirements
MiCA mandates obligatory VASP/CASP licensing, strict certification, minimum share capital, and transparent ownership structures. In the EU, the process of obtaining a crypto license takes from 3 to 6 months and requires significant expenditure on documentation preparation, implementing client verification systems, ensuring digital asset security, and meeting financial reporting requirements.
In Panama, Licensing cryptocurrencies is not mandatory for most types of activities with virtual assets. Company registration in Panama takes 2–4 weeks, there is no set minimum share capital, and client verification and digital asset security requirements are determined by the company’s internal policy. COREDO’s practice confirms: this approach is especially appreciated by startups and projects focused on fast launches and scaling.
AML/KYC: What It Is and Why It’s Needed
MiCA enforces strict AML compliance requirements, including mandatory staff certification, blockchain compliance implementation, and regular regulator checks. All CASPs are required to conduct deep customer identification, transaction monitoring, and keep detailed financial records. This ensures maximum transparency of business processes and minimizes income legalization risks.
In Panama, AML/KYC procedures remain flexible: the company independently determines the depth of client checks, relying on international standards and FATF recommendations. The COREDO team implemented for clients in Panama the introduction of multi-level KYC procedures, transaction monitoring automation, and setting up a risk management system, which ensured financial transparency of the crypto business and increased trust from banks.
Access to Investments Through Banks
In the EU, licensed crypto companies have access to a wide banking infrastructure: most European banks are willing to serve licensed CASP/DASP, which facilitates attracting institutional investors and integrating with payment systems. MiCA also fosters a growth in trust from banks and investors due to high transparency and mandatory reporting.
In Panama, the banking infrastructure for crypto companies is limited, and access to international payments depends on the business structure and the chosen bank. The solution developed by COREDO for clients includes the selection of partner banks specializing in servicing crypto services, as well as organizing corporate governance to increase trust. For attracting investments through MiCA, Panama is not always optimal. On the other hand, for flexible international crypto projects, it can become an effective launching pad.
Regulatory Costs and Timelines – What You Need to Know?
The cost of a cryptocurrency license in the EU includes not only state fees and minimum share capital but also expenses for legal support, audits, AML/KYC procedures deployment, and maintaining corporate governance. On average, the costs for launching CASP in the EU exceed €150,000, and registration takes 3–6 months.
In Panama, the costs for company registration and launching a crypto business are minimal: registration takes 2–4 weeks, accompaniment and AML/KYC procedures implementation expenses are significantly lower, and the jurisdiction’s economic efficiency allows a quick market entry with minimal costs.
Risks of MiCA and Panama: Legal and Financial
Risks of MiCA and Panama are not just legal nuances, but also substantial financial challenges for crypto companies and startups. New regulatory requirements affect business stability, operational transparency, and client protection, and non-compliance with these norms can lead to severe consequences for companies of all scales.
Consequences of Non-Compliance with MiCA for Business
Non-compliance with MiCA threatens crypto companies not only with fines but also with the complete loss of VASP/CASP licenses, account blockages, and the inability to attract institutional investors. MiCA implementation complexities are associated with constantly updated requirements, the need for regular certification, audits, and high compliance costs. COREDO’s experience shows: for long-term financial stability in the EU, it is critically important to build a risk management system and ensure compliance not only with national but also international standards.
Risks of Operating in Panama
Panama is attractive for international crypto projects due to its flexibility but requires special attention to risk management when choosing the jurisdiction. The main constraints are limited access to the European banking infrastructure, the need to self-implement AML/KYC procedures, and risks associated with unclear legislative clarity. Long-term consequences of choosing Panama over MiCA can include difficulties with income legalization, international taxation, and attracting institutional investors. COREDO’s practice confirms: competent setup of client verification systems and corporate governance can minimize these risks.
Scaling Crypto Services: How to Enter the Market
Scaling Crypto Services requires a well-thought-out strategy and an understanding of the peculiarities of each jurisdiction to successfully enter the international market. Below we will consider key aspects of scaling a crypto project using the example of Panama and explore what is important to consider when choosing a country to launch crypto products.
Thus, choosing Panama as a jurisdiction for scaling a crypto project requires careful preparation and consideration of local features, which will be discussed in more detail below.
How to Scale a Crypto Project in Panama
Panama for scaling crypto services means fast launch speed, minimal bureaucracy, and the ability to flexibly adapt the business model for different markets. Regulatory flexibility allows quickly testing new products, integrating innovative solutions, and scaling the crypto project without the need for complex certification procedures. The COREDO team implemented projects for clients in Panama where, by optimizing internal KYC and AML procedures, markets in Latin America and Asia were entered within 2–3 months.
Entering the European Market Through Panama
Company registration in Panama does not close the way to the European market but requires the construction of a hybrid structure: part of the operations can be carried out through European partners or subsidiaries that comply with MiCA. An alternative to MiCA is creating an international holding structure with a center in Panama and operating companies in the EU. This scenario allows attracting investments through MiCA and simultaneously leveraging Panama’s economic efficiency. COREDO’s solution for such clients includes a comparative analysis of jurisdictions and developing a phased strategy for entering the European market.
Thus, the choice of structure should be based on individual business goals and the degree of readiness to comply with European requirements.
Recommendations for Entrepreneurs
Recommendations for entrepreneurs allow you to prepare in advance for the main challenges that businesses face in practice. The following points will help reduce regulatory and financial risks through the implementation of proven approaches to threat assessment and risk management.
How to Reduce Regulatory and Financial Risks
- Implement multi-level AML procedures and KYC processes that meet international FATF standards.
- Set up a risk management system and blockchain compliance to monitor transactions and prevent income legalization.
- Organize corporate governance with clear distribution of responsibilities and transparent financial reporting.
- Utilize legal support for crypto companies to timely update procedures and comply with new requirements.
Panama or MiCA for Crypto Business: What to Choose?
- Evaluate the ROI when choosing a jurisdiction: compare launch costs, registration timelines, share capital requirements, and potential scaling constraints.
- Consider the long-term consequences of choosing Panama over MiCA: access to banking infrastructure, the ability to attract institutional investors, compliance with international standards.
- The economic efficiency of the jurisdiction should be combined with the transparency of business processes and the ability to legalize income.
Common SEO Mistakes and How to Avoid Them
- Underestimating the complexity of implementing AML/KYC procedures and blockchain compliance.
- Ignoring corporate governance and financial reporting requirements.
- Lack of a European market entry strategy when registering in Panama.
- Using outdated administration models without considering new standards.
COREDO’s practice confirms: timely implementation of new administration standards and legal support for crypto companies help avoid most mistakes and ensure long-term business sustainability.
Thus, a comprehensive approach to internal processes and compliance with international standards becomes critically important: the question arises: choose Panama or operate under MiCA rules?
Panama or MiCA: What to Choose?
**How to choose between Panama and MiCA for crypto business?**
The choice depends on your strategy: if priority is a fast launch and flexibility, Panama is preferable; if access to European investors and banks is needed, MiCA is the optimal solution.
The choice depends on your strategy: if priority is a fast launch and flexibility, Panama is preferable; if access to European investors and banks is needed, MiCA is the optimal solution.
**What advantages does company registration in Panama offer for crypto services?**
Minimal registration timelines, low costs, flexible AML/KYC, and the ability to scale without bureaucracy.
Minimal registration timelines, low costs, flexible AML/KYC, and the ability to scale without bureaucracy.
**What risks does the transition to MiCA involve for existing crypto businesses?**
High regulatory costs, the need for constant audits and certification, the risk of license loss for non-compliance.
High regulatory costs, the need for constant audits and certification, the risk of license loss for non-compliance.
**How to ensure financial transparency for a crypto company in Panama?**
Implement internal reporting standards, automate transaction monitoring, and use international auditing practices.
Implement internal reporting standards, automate transaction monitoring, and use international auditing practices.
Panama or MiCA – What to Choose for Crypto Business
| Criterion | Panama | MiCA (EU) |
|---|---|---|
| Licensing | No special crypto license required | Mandatory crypto license (VASP, CASP) |
| AML/KYC | Basic requirements, flexibility | Strict regulations, certification |
| Banking Infrastructure | Limited, depends on the bank | More accessible for licensed companies |
| Registration Timelines | 2-4 weeks | 3-6 months |
| Cost | Low expenses | High costs (minimum capital, fees) |
| Scalability | High, minimal bureaucracy | Restricted by regulatory requirements |
| Transparency | Depends on the company’s internal policy | High, mandatory reporting |
| Investor Trust | Medium, depends on the structure | High, especially for institutional |
Consequences of Choosing Panama Instead of MiCA
The strategic choice between Panama and MiCA determines not only current regulatory costs but also the financial stability of the company, access to international taxation, and prospects for attracting institutional investors. Panama for crypto-business is about flexibility, speed, and economic efficiency. At the same time, for long-term sustainability and compliance with international standards, competent corporate governance and the implementation of best AML compliance practices will be required.
The solution that the COREDO team develops for clients is always built on analyzing long-term consequences: only in this way can sustained growth, transparency, and trust from partners and investors be ensured. choosing a jurisdiction is not just a formality, but a strategic step that determines the future of your crypto business.