Crypto License in Portugal

This was after the central bank granted it permission to operate as a Virtual Asset Service Provider in April. In April, Bison Bank was approved to store and trade cryptocurrencies in Portugal. Portuguese financial institution Bison Bank was granted a license from Banco de Portugal, the country’s central bank, to operate as a Virtual Asset Service Provider or VASP, an announcement that came from Banco de Portugal on Thursday.

According to the report from Portuguese media Sapo, Bison Bank is set to establish a business unit called Bison Digital Assets that will be used for the exchange of virtual assets. The division shall become the first legal entity in Portugal from any bank authorized by Banco de Portugal to carry out the depository and trading services of cryptocurrencies.
During the rapid development of the FinTech industry, there have been discussions by the Portuguese government about blockchain technology in general and cryptocurrency in particular.

These technologies drew public attention, especially due to the rising costs of Bitcoins, further interest in holding ICOs both in Portugal and other countries, and their market capitalization.

Those who wish to create, in Portugal, a cryptocurrency or a crypto company for the purpose of carrying on any kind of transaction with crypto assets should, first of all, register with Banco de Portugal before starting their activities.

The license to operate crypto activities in Portugal is compulsory for every virtual asset provider involved in:

• Virtual assets/fiat currencies exchange service provision
• Exchange service provision between different forms of virtual assets.
• Service providers that facilitate the transfer of virtual assets between addresses or wallets.
• Custom wallet service providers, crypto exchanges, and the like.

Cost of cryptocurrency license

GENERAL PROVISIONS

In order to obtain a crypto-sharing license in Portugal, a number of requirements must be fulfilled, which include the following:

• Request from IBCM for prior authorization to license a company in the Portuguese Free Economic Zone;
• The registration procedure of a Portuguese company;
• Obtaining an MBCM license;
• Application for a license to exchange cryptocurrencies with the Bank of Portugal;
• Appointment of an anti-money laundering officer and a local director;
• Opening a settlement account with a Portuguese bank;

In Portugal, there are no border restrictions or obligations for declaring assets in cryptocurrency. There is no separate obligation to report, in the case of payments in cryptocurrency above a certain threshold, except for transactions in which an obligated person subject to the Portuguese AML Act may participate, In such a case, the person concerned would be required to report suspicious transactions or activities regardless of the amount involved.

Financial institutions are required to assess transfers from and to virtual platforms for trading assets in the light of ML/TF prevention rules. They require financial institutions to fulfil a number of responsibilities, including, for example:

• Identification and knowledge of their clients;
• Storing of documents concerning customers and transactions;
• Examining and reporting suspicious transactions;
• Adoption and implementation of internal controls that take into account the EA/TF risks specific to each organization.

Advantages

REQUIREMENTS

• Apostilled/Legalized copies of passports of all participants;
• Apostille/Legalized power of attorney for the registration of the company from all participants;
• Apostilled/Legalized Certificate of legality at the place of citizenship of all participants;
• The power of attorney of the Company’s directors to hire employees and apply for a license;
• Summary from all participants of the enterprise;
• Physical presence in Portugal -office;
• Local authorities – at least one of the directors must be resident in Portugal;
• Head of Local anti-money laundering officer.

COMPANY REGISTRATION

Along with the documents for registration, 3 company names should be provided – in Portugal repeated company names are forbidden, several names are needed to choose the possible option.

To be able to register the company also it is necessary to identify the types of economic activities which company plans to conduct.

It is also required to indicate the amount of the minimum legally allowed capital. The law has fixed a ceiling-1 euro.

Crypto company incorporation procedure:

1. Identification of future activities and development of a business plan
2. Selection, checking, and reservation of a commercial name for a crypto company.
3. Information gathering regarding the beneficiaries, founders, and managers of the company.
4. Searching for a registration address for a crypto company.
5. Preparation of constituent and registration documentation.
6. Preparation and submission of the set of documents required for registration.
7. State registration, in case of a positive conclusion.
8. Registration for taxation and employment purposes.
9. Receipt of additional licenses for the activities, which are under the special license regimen.

After the registration of the company, taking into consideration previously gathered documents, it is necessary separately to open the account with the Portuguese bank:

• An agreement on establishment;
• Extract from the State Register of Companies;
• Extract from the register of beneficiaries;
• Names of parents of the account manager;
• Mobile phone number;
• E-mail address.

Crypto regulation in Portugal overview

RESPONSIBILITIES

Companies that carry out crypto operations, among other things, carry out the following actions:

• Identify clients, as well as their representatives, in the cases provided by law, request at least an identity card (for a natural person) or registration documents (for a legal person);
• Take all reasonable steps to understand the ownership structure and control of the customer;
• To be informed of the purpose and intended nature of the business relationship;
• Formation of risk profile of the client depending on peculiarities of transactions, source and destination of funds within the framework of business relationship or a one-time transaction;
• Collect, store and update information about customers and transactions with crypto assets;
• Apply simplified or strict control procedures under certain conditions;
• Refuse to carry out the transaction if there is a risk of money laundering and financing of terrorism;
• Submit general reports, as well as cases related to the laundering of money derived from crime and the financing of terrorism;
• Training of personnel responsible for compliance with the rules on combating money-laundering and the financing of terrorism.

MAIN RISKS

According to the Bank of Portugal, there are several types of risks connected to the cryptolicense business in Portugal.

Virtual assets transactions bear risks not only for their holders but also for all market players. Following the warnings from the European supervisory authorities and the Conselho Nacional dos Supervisores Financeiros, the Banco de Portugal would like to bring to your attention the following risks:

• Virtual assets are not legal tender in Portugal; this implies they have no obligation to be accepted at nominal value;
• Unlike regulated forms of payment instruments, no legal protection grants buyers the rights to buy back in case consumers make payments with the virtual assets;
• In the event of total or partial impairment of virtual assets, there would be no fund to cover any losses of its users and these shall bear all the risks resulting from transactions using the same;
• Users of virtual assets may not want to lose money via the trading platform;
• Virtual assets can become illegal transactions by using them in criminal activities, including ML/TF.

MORE GENERAL INFORMATION

Cryptocurrency in Portugal is used to pay for services or goods that sellers accept this type of payment. This is especially advantageous for real estate sellers in Portugal.

Portugal is also attractive for obtaining a residence permit for foreigners, as this requires an investment in real estate of about 500 thousand euros.

By abandoning the income tax that was levied on individuals receiving income from the sale of cryptocurrency, the country’s leadership created more favorable conditions for the development of this business. Thus crypto traders can conduct financial activities without paying fiscal fees.

During the sale of goods or services, Portuguese tax law provides for a VAT rate of up to 23 per cent in some cases. However, the authorities have exempted crypto payments from the need to pay value added tax.

It is common practice in Portugal to pay for property in cryptocurrency. Thus, the first sale of real estate in Portugal for Bitcoin was made in 2018. The property that was sold during the transaction is located near Lisbon. This case was the first and gave a start for other real estate sellers, so today such transactions are drawn up regularly, and as payment cryptocurrency is used.

More about taxation of crypto business in Portugal.

Also, lawyers from Regulated United Europe provide legal services for obtaining a Czech Republic crypto license.

Navigating Crypto Compliance: Securing a Crypto Exchange License in Portugal 2024

Portugal, with its favorable regulatory climate and strategic position within the European Union, is becoming an attractive destination for cryptocurrency businesses. This article provides an in-depth guide on obtaining a crypto exchange license in Portugal, highlighting the regulatory landscape, application process, and the benefits of establishing a licensed operation in this vibrant market.

Regulatory Environment for Crypto Exchanges in Portugal

Portugal’s approach to cryptocurrency regulation is overseen by the Banco de Portugal and complies with broader EU financial regulations. The country offers a balanced regulatory environment that supports innovation while ensuring financial safety and compliance with international standards.

Types of Crypto Licenses in Portugal

Portugal offers a variety of crypto-related licenses to cater to different aspects of the cryptocurrency business:

• Crypto exchange license in Portugal: Permits the exchange of cryptocurrencies for fiat currencies or other digital assets.
• Crypto broker license in Portugal: Allows companies to facilitate crypto transactions on behalf of clients.
• Crypto trading license in Portugal: For entities directly engaged in buying and selling digital assets.
• VASP crypto license in Portugal: Aimed at providers of services related to virtual assets.

Requirements for Getting a Crypto License in Portugal

Applications are highly demanding and require solid AML, operational security measures, and proof of financial solvency. Detailed business plans explaining the operations must be prepared, along with compliance strategies.

Costs Involved in Obtaining a Crypto License

The crypto exchange license cost in Portugal varies to a great degree, from the type of license to the scale of operation. Although not the cheapest crypto license, the investment is justified by the market opportunities and regulatory support offered.

Advantages of Getting a Crypto License in Portugal

Obtaining the license can provide them with credibility, protection on a legal basis, and access to an open market in Portugal and within the EU. It improves the potentiality of raising international partnerships or investments.

Investing Opportunities in the Portuguese Crypto Market

Indeed, the crypto market of Portugal stands at its prime, with many opportunities opening-especially when having in mind the competitive licensing options available and the supportive ecosystem when it comes to technology startups. Growth in this segment is highly expected to be substantial, especially for businesses taking advantage of the cheapest crypto license offered by the country.

Buying an Already Existing License

To enter the market faster, acquiring a crypto exchange license for sale in Portugal is a path which may be taken forward by businesses. This requires very careful due diligence from the point of view of compliance with all regulatory requirements but also business goals.

While one is still firming up its position as a crypto business-friendly state, the obtaining of a crypto exchange license in Portugal is a serious strategic step for those willing to seize the great potential of the European and worldwide cryptocurrency markets. This dynamic field is best approached with compliance, preparedness, and thorough knowledge of the regulatory landscape.

Entities registered to carry out activities with virtual assets in Portugal

Crypto License in Portugal 2025

Progress of cryptocurrency regulation is taking shape. As such, in Portugal, for instance, the adoption of the MiCA Regulation may amply change the market to become more attractive for investments. More so, the sharing of powers between CMVM and the Bank of Portugal remains unclear, but the new changes are expected to be good for the market.

The MiCA Regulation, which finally entered into force in 2023, aims at increased safety and predictability for market participants and consumers, while raising the bar of transparency for operations. Already, Europe leads the way on some aspects of cryptoasset regulation, but challenges remain—such things as implementing standards and finding out the body responsible for overseeing this area in Portugal.

Regulation continues to evolve: at the end of June, for example, regulations regarding two types of stablecoins took effect, specifically ART (asset-backed tokens) and EMT (electronic money tokens). While waiting for this change, some organizations restricted access to those cryptocurrencies which could not be fitted into the frames of new regulations. Yet, these challenges were overcome.

Owing to rapid compliance, proactive warnings by some cryptocurrency exchanges that there was a possibility of blocking some stablecoins in cases of non-compliance did not raise major concerns in the industry. For example, Circle went through the licensing process pretty fast, which was followed by other cryptocurrencies. Concomitantly, there is also a risk of reduction in market liquidity and erosion of investor confidence, seen as overregulation of the markets. The strong regulatory framework might drive investors to other markets that could have less rigid regulations, where the risks of fraud and other illegal transactions would also rise. However, on the consumer protection benefits on account of those risks are significant.

In Portugal, the process of defining how competencies will be divided between the CMVM and the Bank of Portugal is already at an advanced stage. A final government decision on the matter is expected shortly.

The legislative draft related to the implementation of the obligations provided for in the MiCA regulation is currently under completion at the National Financial Supervisory Council and will soon be submitted to the government, CMVM explained through a spokesperson, in writing to SAPO TEK in early July.

The CMVM is actively preparing for the possible supervision of crypto assets under MiCA, in close co-operation with the European Securities and Markets Authority (ESMA) and other European regulators, besides the Bank of Portugal. Back in April of this year, the CMVM launched a public consultation to which interested organizations were called to consider the eventual impact of introducing MiCA in Portugal. This consultation gathered input data and proposals that could be part of the preparatory work for the implementation of this regime in view of specificities and upon consideration of the inputs of the organizations participating therein.

Though most of MiCA’s main provisions currently entered into force, most of their application does not begin until 30 December 2024, meaning Portugal still has time to point out the authority responsible for supervision. Distribution of competences by the Bank of Portugal and the CMVM is expected. The fact that formal designation would only occur belatedly takes into account the clarification of competences, the eventual restructuring of existing regulating structures; it adds, as such, another layer of complexity in the regulatory process under MiCA.

In the context of European regulatory integration, for example, Germany is emphasized for how it is energetically preparing BaFin – the Federal Financial Supervisory Authority—to assume control of the crypto-active market under MiCA. In turn, in France, the AMF – Autorité des Marchés Financiers—is proactively acting to adapt its structures and procedures in conformance with the regulation. At the same time, these examples may serve as a point of reference for Portugal in the course of defining and implementing supervisory functions under MiCA, inasmuch as their effective integration and coordination will depend on action at the national level.

Expert opinions are unanimous in underlining the positives of the regulation: better compliance, transparency, security, and consumer protection—all against the fact that MiCA has not yet been fully implemented. Full implementation is expected to further entrench these trends—to stabilize, in other words, the cryptoasset market and build confidence therein within the European Union.

The implementation of MiCA in Portugal could give a full turn to the cryptoasset market, increasing trust, attracting investment, and offering a safer, more transparent environment for all market participants. Experts warn that the desirable thing is for the Portuguese authorities to proceed with balanced implementation of the regulation: one that takes care of the costs of regulatory compliance with its effective impact on innovation in cryptoassets. This will ensure that the benefits of MiCA are maximized, while the negative impacts of such a regulation on the innovation potential of the market are minimal.

It is already widely recognized on the global stage, from the US to Singapore, that MiCA, with its basic principles, will be the innovative and well-designed legal framework. That undoubtedly underlines its relevance and the possibility of this being applied as a global standard. The real challenge now is to prove that Brussels has the ability to export this regulation outside the European Union.

MiCA also introduces significant changes concerning legal certainty, which can be clearly and transparently communicated, showing what the rules of the game are to all market players. The approach taken helps rule out unauthorized interference by foreign companies and companies from high-risk jurisdictions, which cuts down significantly on manipulation and unfair competition opportunities. In general, these measures build confidence and stability in financial markets and make them more predictable and safe for investors and ordinary users.

Although the key provisions of the MiCA regulations have been known for a few years and the final text of the regulation was approved more than a year ago, the fact that no information has been provided whatsoever on the second- and third-tier measures that finalize the regulatory space has created tremendous uncertainty in the crypto-asset ecosystem. It follows that the delay in the finalization of these basic elements of regulation has been at cross-purposes with all market participants, professional enterprises, and consumers alike.

Nevertheless, Portugal retains the magic in the crypto world. With a new tax regime for cryptoassets, allowing foreign workers of startups to still enjoy the regime of NHR, this country has retained a fascinating force in global talent attraction. Such policies create an enabling environment for development and bring about foreign direct investment that dynamises the local economic ecosystem.

This would consequently very much strengthen Portugal’s position to be at the heart of the European cryptoasset market, with big companies coming to register their bases in Europe here.

That will make Portugal even more attractive for new and innovative projects that aim to create a kind of offer not available in the market, similar to what Silicon Valley has been offering. The success of the Portuguese formula confirms that the country found a unique path to sector development, answering local conditions and global requirements.

The regulation of cryptocurrencies in Portugal faces serious changes trying to follow the popularity and proliferation of those assets.

The Bank of Portugal, under the new regime in force since 2020, made the registration process compulsory for those entities providing services of exchange of cryptocurrencies for or from fiat money and custody services for crypto-assets, as a measure to enhance the regimes related to the prevention of money laundering and terrorist financing. Whereas the Bank of Portugal is the supervisory body regarding the fulfillment of all the aforementioned obligations, the same does not reach the regulation of the cryptocurrencies themselves.

In the European Union, Portugal adheres to the MiCA Regulation, which tries to establish a pan-European regulatory framework for cryptoassets. Meant for the issuance and circulation of cryptoassets, the MiCA regulation also encompasses investors’ rights and market integrity. Its full implementation will harmonize the various regulatory approaches taken up till now by different member states, including Portugal, in their respective jurisdictions to obtain a better, more transparent environment for all market participants.

The Portuguese tax environment is also constantly changing. The Tax Authority has issued guidelines on the taxation of income from crypto assets. For those who, from time to time, perform some transactions with crypto-assets, the obtained income is not taxable. However, if these activities are carried out in a systematic way and the respective activities are considered to be a business, such obtained income is taxable. For the companies performing crypto-assets trading, corporate income tax-IRC is due and the obtained capital gains are includable in the taxable base.

Taxation of Cryptocurrencies in Portugal 2025

Within the Portuguese territory, the obtained profits from different activities related to cryptocurrencies are covered under the general system of taxation. Income can be qualified, depending on the type of activity, as business income. This series includes income obtained from activities like mining cryptocurrency or verification of the transaction of crypto assets that are included in category B and thus are taxable if the total annual income does not reach 200 thousand euros.

Other factors include the principle that cryptocurrencies use blockchain technology; the very core of transaction security and storage of data is decentralized and without the control of centralized command in any way.

Depending on how often the cryptocurrency transactions are made, the income from such transactions could be considered as nontaxable. However, it could also happen that the transactions occur in an organized manner, and the revenues coming from such activities are regular; hence, those may fall under the category of a taxable activity. In this way, the regulation of taxation in Portugal takes into consideration both sporadic and regular activities with cryptocurrencies to be properly taxed under the country’s law.

Income taxation derived from activities regarding cryptocurrencies, without considering mining processes, happens in the State of Portugal as follows: only 15% is taxable. For instance, if one has received 1000 euros worth of income and all requirements are met, the only 150 euros should be taxable, while the rest remains tax-free, which is also a perfect situation for startups in Portugal. When it comes to the income derived from mining activities, the tax rate rises to 35% if obtained income is considered business income.

Despite various forms of taxation, the fact remains that many businesses are reluctant to change their operating models since they wish to continue enjoying certain benefits of the country. This illustrates that Portugal is still an attractive hub for new companies, as this country offers a regime aimed at attracting international investment, fostering the creation of jobs and growth. It is expected that the new regulation of cryptocurrencies will bring new dynamics to this sector in Portugal, while the country maintains its status as a vibrant place for crypto development and innovation.