Portugal Approves MiCA Crypto-Asset Legislation, Ending Regulatory Standstill
The Portuguese government has officially approved two legislative proposals designed to implement the European Union’s Markets in Crypto-Assets (MiCA) regulation, according to a recent announcement from the Council of Ministers. This policy initiative aims to establish a clear legal framework for the digital asset sector in Portugal, defining the national supervisory authorities and rules for service providers. The move is set to resolve a regulatory gap that has persisted since the end of last year, when the previous regime for registering virtual asset service providers expired, leaving new market entrants in limbo. The government’s objective with this legislation is to provide legal certainty, protect consumers, and ensure the integrity of the crypto-asset market within the country.
The policy will now proceed to the Assembly of the Republic for debate and final approval. The core of the proposal includes the designation of competent national authorities to oversee the market, the establishment of clear rules for supervision, and the definition of sanctions for non-compliance. Furthermore, the legislation introduces a transitional regime for entities that are already operating within the Portuguese market, allowing them to adapt to the new European-wide standards. This structured implementation is intended to foster a stable and predictable environment for both domestic and international companies involved in crypto-assets. The Ministry of Finance had previously signaled that the legislative process was advancing, and this approval marks a critical milestone in aligning Portugal with the EU’s harmonized approach to digital finance.
A key component of the government's strategy is to strengthen financial security. A second diploma approved alongside the main MiCA implementation bill specifically focuses on reinforcing the traceability of crypto-asset transactions. This measure is explicitly aimed at combating money laundering and the financing of terrorism, bringing Portugal’s regulatory practices in line with global anti-financial crime standards. The Bank of Portugal had previously suspended the registration of new crypto entities, citing the absence of a clear legal mandate following the MiCA regulation's effective start date. The central bank's governor, Mário Centeno, had emphasized the need for a designated national authority before it could resume its oversight and licensing functions.
The MiCA regulation itself, approved by the EU in 2023, represents the world's first comprehensive cross-border regulatory framework for crypto-assets. It covers a wide range of digital assets, including stablecoins, utility tokens, and asset-referenced tokens, as well as the service providers that facilitate their trade and custody. The regulation’s implementation across the EU is expected to create a unified market, enhancing investor protection and fostering innovation in a secure manner. The Portuguese government's recent action is a decisive step toward integrating the country into this new European digital finance landscape, with officials expecting the final legislative steps and the formal announcement of the designated supervisory body to occur in the near future. Understand policy impacts on your Portugal property plans at realestate-lisbon.com.
