Is Forex Legal in Panama?

Forex trading is legal in Panama, with the activity regulated by the Superintendencia del Mercado de Valores (SMV), Panama's securities market regulatory authority (1). The SMV oversees all financial market activities in the country and requires proper licensing for companies engaging in forex trading operations. Individual retail forex trading by Panamanian citizens is permitted under the current regulatory framework.

The regulatory environment in Panama distinguishes between different types of forex activities, with companies offering forex services required to obtain specific licenses from the SMV (1). Panama's use of the U.S. dollar as its national currency and the absence of foreign exchange controls creates a favorable environment for forex trading activities (2). The country maintains an open capital flow policy with no restrictions on moving funds in or out of Panama.

"There are no foreign exchange controls. The U.S. dollar is the national currency and there are no restrictions on capital flows into or out of the country."

While forex trading itself is legal, the SMV actively monitors and warns against unauthorized entities operating without proper licenses. The regulator regularly issues public warnings about companies attempting to provide forex services without SMV authorization, emphasizing the importance of working only with properly licensed providers. This regulatory oversight helps protect consumers while maintaining the legal framework for legitimate forex trading activities in Panama.

Source:
https://supervalores.gob.pa/
https://www.trade.gov/country-commercial-guides/panama-trade-financing

Last updated: 01-06-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.