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Portugal

CMS Expert Guide to Crypto Regulation in Portugal

Table of contents
  1.  How is crypto regulated?
  2.  Are the following activities regulated or unregulated in your jurisdiction? ― Exchange (buy/sell) ― Custody (hold) ― Borrowing/lending ― Yield/staking
  3. How long would establishing a cryptoasset business/obtaining a license in your jurisdiction take?
  4. What would be the approximate overall cost of obtaining a licence?
  5. What is the probability (%) of success in obtaining a licence?
  6. What other limitations are there in your jurisdiction when looking to set up a cryptoasset business? E.g., Compliance requirements and physical presence
Portugal
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Disclaimer: This chapter was last updated on 8 September 2023 and does not reflect any subsequent developments. The information provided is intended for general informational purposes and should not be construed as legal advice.

1. How is crypto regulated?

AML RegulationFinancial Services Regulation
Until the Regulation on Markets in Cryptoassets (MiCA) comes into force, all of the following activities are only regulated for AML purposes. Any entities providing such services on a professional basis are required to register before the Bank of Portugal (banking regulatory authority). The Bank of Portugal’s regulatory oversight is, however, limited to AML aspects, and does not cover or otherwise monitor the activities themselves.Cryptoassets as such are not regulated for FSR purposes (for instance in the case of regular bitcoins). However, should the cryptoassets, materially, have the characteristics of a security which is regulated pursuant to FSR then they shall be subject to the regulatory requirements applicable to such securities. This, however, is subject to a case by case review to be conducted by the CMVM (Portuguese securities exchange commission). 

2. Are the following activities regulated or unregulated in your jurisdiction? ― Exchange (buy/sell) ― Custody (hold) ― Borrowing/lending ― Yield/staking

AML RegulationFinancial Services Regulation

See above.

See above.

3. How long would establishing a cryptoasset business/obtaining a license in your jurisdiction take?

AML RegulationFinancial Services Regulation

According to the legal frame is 3 months, but it may go up to 6 months if the Bank of Portugal makes additional information requirements. The average is usually around 5-6 months

Nevertheless, when MiCA comes into force this will change as the issuance of tokens and the cryptoassets service providers activities will be regulated.

Dependent upon the type of licence required.

4. What would be the approximate overall cost of obtaining a licence?

AML RegulationFinancial Services Regulation
N/ADependent upon the type of licence required.

5. What is the probability (%) of success in obtaining a licence?

AML RegulationFinancial Services Regulation
90%Conditional on the type of licence required. Financial regulatory environment in Portugal generally proactive and friendly.

6. What other limitations are there in your jurisdiction when looking to set up a cryptoasset business? E.g., Compliance requirements and physical presence

AML RegulationFinancial Services Regulation
It is only necessary to comply with the registration process regarding AML (through the provision of some documentation).Compliance requirements dependent on the type of security to which the cryptoasset is deemed equivalent to.

Authors

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Portrait ofGonçalo Cabral Moncada
Gonçalo Cabral Moncada
Associate
Lisbon
Portrait ofMargarida Vila Franca
Margarida Vila Franca
Partner
Lisbon