Panama’s stock market recorded a significant 23 percent increase in transaction volume through October 2025, even as the nation’s top financial regulator announced plans to modernize its framework and establish rules for digital assets. Superintendent of the Securities Market, Maruquel Murgas, confirmed the market’s robust performance and outlined dual regulatory priorities in a recent year-end review. The moves aim to bolster Panama’s position as a regional financial hub while addressing emerging risks in the unregulated cryptocurrency space.
Transaction volume handled by securities houses reached $146.66 billion between January and October 2025. New issuances during that period totaled $1.605 billion, with another $4.67 billion in issuances currently pending approval. This growth underscores the market’s role as a critical alternative financing source for large-scale national projects, providing options beyond traditional bank credit.
“It is an alternative financing source for major projects that give growth to the country and, on the other hand, offers savers an investment alternative with better returns,” said Superintendent Maruquel Murgas. [Translated from Spanish]
Murgas emphasized the market’s dual function. For issuers, it unlocks longer-term capital. For investors, it provides diversification and the potential for stronger yields. The superintendent also reported that from January to October 2025, issuers disbursed $2.97 billion to investors, a figure covering capital repayments, dividend payments, and interest. This consistent fulfillment of financial commitments, she argued, is fundamental to maintaining participant confidence.
Modernizing the Core Framework
A separate but parallel initiative involves a comprehensive reform of Panama’s existing Securities Market Law. The Superintendency of the Securities Market (SMV) has concluded a public consultation process and is now integrating feedback from market participants. The goal is to present a finalized proposal to the Ministry of Economy and Finance (Panama) early in the first quarter of 2026.
This modernization seeks to align Panama’s regulations with international best practices. Officials want to facilitate innovation, strengthen competitiveness, and enhance investor protection. The central focus remains maintaining market integrity and trust. Murgas clarified that this legislative update is a distinct process from the separate effort to regulate crypto-assets, though both fall under the broader mandate of market safety.
The Push to Regulate Digital Assets
A key driver for new cryptocurrency regulation comes from international pressure. Panama faces a 2027 evaluation by the Financial Action Task Force (FATF), which mandates the licensing and supervision of virtual asset service providers. Murgas pointed out that virtual assets currently exist in a legal gray area within Panama. They are not prohibited, but they also lack any formal oversight.
This absence of regulation, she warned, opens the door to potential risks and fraudulent practices. “It is important that some type of supervision and regulation exists. The Superintendency of the Securities Market wants this to be regulated,” Murgas stated. [Translated from Spanish] The SMV is prepared to oversee crypto-assets that have clear investment characteristics or represent rights over financial instruments, provided the law grants it explicit authority for effective supervision.
“The Superintendency is open to participating in the regulation of crypto-assets whenever they are products with investment characteristics,” Murgas explained. [Translated from Spanish]
Not all digital asset services would fall under the SMV’s purview, however. The superintendent noted that activities like payments, currency exchange, or pure custody associated with virtual assets do not historically align with the SMV’s functions. Regulating these services, she said, requires a comprehensive analysis coordinated with other regulators under the leadership of the Ministry of Economy and Finance.
Market Composition and Regional Leadership
The data from the first ten months of 2025 reveals a market dominated by bonds and international activity. Bonds accounted for 59 percent of the total transaction volume, solidifying their position as the instrument most in demand by investors. A full 88 percent of new issuances were placed in international markets, with only 10 percent in the local stock market and 2 percent in over-the-counter operations.
Murgas also reported that 63 investment societies were registered as of October 2025. Twenty-seven of these operate as real estate investment trusts. The superintendent concluded her review by highlighting a strategic plan focused on modernization, strengthened internal processes, and positioning Panama as a regional reference for effective supervision and good practices. The simultaneous growth and regulatory evolution suggest a concerted effort to mature Panama’s financial ecosystem on multiple fronts.