{"id":9082,"date":"2022-02-14T14:17:13","date_gmt":"2022-02-14T14:17:13","guid":{"rendered":"https:\/\/e-legal-blawg.com\/?p=9082"},"modified":"2022-02-21T10:16:56","modified_gmt":"2022-02-21T10:16:56","slug":"portugal-criptofriendly","status":"publish","type":"post","link":"https:\/\/e-legal-blawg.com\/en\/2022\/02\/14\/portugal-criptofriendly\/","title":{"rendered":"Portugal: criptofriendly"},"content":{"rendered":"

Summary:<\/strong><\/h3>\n

This article will approach the current legal framework for companies which deal with cryptocurrency in Portugal, specifically, those transacting with such virtual currencies. Existing legislation is favorable to the incorporation of these type of companies, subject to the supervision and prior registration with Banco de Portugal<\/em>.<\/p>\n

\u00a0\u00a0\u00a0 I . Introduction<\/strong><\/h4>\n

Portugal is now the first European country to regulate cryptocurrencies. As a matter of fact, Law no. 58\/2020, of 31 August (that implements Directive (EU) 2018\/843 of 30 May 2018, amending Directive (EU) 2015\/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, and Directive (EU) <\/em>2018\/1673<\/em><\/a> of 23 October 2018, on combating money laundering by means of criminal law<\/em>), introduces amendments to several legal diplomas, including Law no. 83\/2017, of 18 August, which extends its application to entities that carry out activities with virtual assets.<\/p>\n

First and foremost, it is important to realize the role of \u201cBanco de Portugal<\/em>\u201d to really understand the legal changes operated. Banco de Portugal<\/em> is the central bank of the Portuguese Republic. It is a public-law legal person, with administrative and financial autonomy, being part of the Eurosystem, the European System of Central Banks, the Single Supervisory Mechanism, and the Single Resolution Mechanism. The Bank has two core missions: to maintain price stability and to promote the stability of the financial system.<\/p>\n

On 23 April 2021, Banco de Portugal<\/em> published Notice no. 3\/2021 (the “Notice”), which regulates (i) applications for registration and (ii) applications for changes to registration of entities that carry on, or intend to carry on, activities with virtual assets.<\/p>\n

\u00a0\u00a0\u00a0 II . Scope of the Law<\/strong><\/h4>\n

Law no. 58\/2020 is intended to regulate activities involving virtual assets, which can be defined as digital representations of value that are not necessarily linked to a legally established currency and that do not have the legal status of fiat currency, but which are accepted by natural or legal persons as a means of exchange or investment and which can be transferred, stored, and traded electronically.<\/p>\n

These activities comprise any of the following economic activities, carried out in the name of or on behalf of a client: (i) exchange services between virtual assets and fiat currencies; (ii) exchange services between one or more virtual assets; (iii) services whereby a virtual asset is moved or transferred from one address or wallet to another (transfer of virtual assets); or (iv) custody or safekeeping services and administration of virtual assets or of instruments that enable these assets to be controlled, held, stored or transferred, including private cryptographic keys.\u00a0<\/p>\n

\u00a0\u00a0\u00a0 III . Registration with Banco de Portugal<\/em><\/strong><\/h4>\n

In accordance with paragraph j) of Article 89(1) of Law No. 83\/2017, Banco de Portugal<\/em> is responsible for supervising such entities.<\/p>\n

Thereby, pursuant to the referred Law No. 83\/2017, the exercise of activities regarding virtual assets depends on prior registration with Banco de Portugal<\/em>, whom on 23 April 2021 published the Notice, regulating the terms for submitting applications for registration and alteration of the registration of entities which carry on, or intend to carry on, activities with virtual assets.<\/p>\n

The requests for registration and\/or modification of elements subject to registration must be submitted through the electronic form available on the website of Banco de Portugal<\/em>. The supporting documents must be filed in digital format and uploaded electronically in the places duly identified on the forms or on the Internet site, except in the event of unavailability or technical inoperability of the form of submission, as well as in situations of force majeure<\/em>.<\/p>\n

In these cases, the applicant entity must submit the following by post:<\/p>\n