This is the first case of its kind and sets a precedent in immigration matters.
Cruz, Jácome & Villarreal, a Panamanian law firm and member of the DRT Alliance, obtained permanent resident status for a client as a real estate investor, based on Article 193 of Executive Decree 320 of 2008, which regulates Decree Law 3 of February 22, 2008.
The National Immigration Service initially denied the application, arguing that the applicant did not provide documents proving that the funds originated abroad, as required by Article 191 of Decree 320. This decision was upheld upon a request for reconsideration.
The situation arises because the property acquired, which supports the application, was purchased with cryptocurrencies, transferred from the buyer’s electronic wallet to the seller’s wallet, without any banking institution or traditional currency involved in the transaction.
The situation raises two interesting points. The first is whether the applicable regulation is Article 191 or 193 of Executive Decree 320. This is relevant because while Article 191 refers to the immigration category «Independent Economic Solvency» and encompasses both real estate investment and fixed-term deposit accounts, requiring proof that the funds originate from abroad, Article 193, «Economic Solvency Through Investment in Real Estate,» does not include the requirement to demonstrate the origin of the funds.
The second point concerns the validity of cryptocurrencies for the purchase of real estate as supporting documentation for a residency application and the need to demonstrate the origin of the funds.
Following the decision of the National Migration Service, an appeal was filed, and after the legal and factual evaluation, the first instance resolution was REVOKED and the requested resident permit was granted, recognizing the applicability of article 193, but also entering into debate regarding the use of cryptocurrencies in the purchase of the property, and it was concluded that in the process there is no evidence that the transaction carried out with cryptocurrencies was intended to deceive the institutional good faith, or was carried out with values of illicit origin and that the trade with virtual currency is legitimate to apply for residency.
