In the terms of cryptocurrencies and blockchain technology, we can say that a regulatory framework is absent at this moment. But according to the latest news that won’t last much longer.
More precisely, the European Regulation on Markets in Crypto-Assets (MiCA Regulation) is being prepared, which will aim to guarantee innovation and fair competition and, at the same time, a high level of consumer protection and the integrity of crypto-asset markets. Another objective of the MiCA Regulation is to ensure financial stability and take into account the risks that may arise, for monetary policy, from crypto-assets that seek to stabilize their price by reference to a currency or an asset.
Cryptocurrency services in Portugal
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Author: Kristina Dosen
Category:
Fiscal subject related
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539
Content accuracy validation date:
14.07.2022
Content accuracy validation time:
07:52h
The activity of issuing and commercializing crypto-assets (such as cryptocurrencies) in Portugal currently lays on a legal loophole and it is only regulated and supervised in regards to Anti-Money Laundering (AML). The Bank of Portugal (BoP) is the competent authority for that supervision.
Let us remind you, that crypto-assets are digital representations of assets based on blockchain technology, which are not issued by a central bank, credit institution, or e-money institution, and that can be used as a form of payment in a community that accepts it or for other purposes such as attributing the right use of certain goods and services or a financial return.
Also, the bank of Portugal provides the following services:
- Exchange services between crypto-assets (such as cryptocurrencies) and fiat money (for instance, Euro or Dollar);
- Exchange services between one or more crypto-assets;
- Services whereby a crypto-asset is moved from one address or wallet to another address or wallet (transfer of crypto-assets and cryptocurrencies);
- Services for the custody and administration of crypto-assets and cryptocurrencies or instruments that allow controlling, holding, storing, or transferring crypto-assets, including private cryptographic keys.
It is important to state that businesses that operate with cryptocurrencies must register themselves at the Bank of Portugal and fulfill some requirements.
Let's wait and see what will be changed in the future with the new legislation that is coming up.