RESEARCH: Portugal Cryptocurrency Status

Executive Summary

• Portugal is a legal jurisdiction for cryptocurrency activities, with no prohibition on buying, selling, or holding virtual assets; crypto is treated as a legitimate asset class under national law. Banco de Portugal - Virtual Assets
• The primary regulators are Banco de Portugal (BdP) for crypto-asset service providers under the Crypto-Asset Markets (MiCA) framework and the Autoridade Tributária e Aduaneira (AT) for tax matters. Banco de Portugal - Autorização
• Licensing is mandatory for crypto-asset exchange, custody, and transfer services; as of 2025, the BdP has licensed at least 12 entities under pre-MiCA transitional rules, with the regulatory regime now fully aligned with EU Regulation 2023/1114 (MiCA). Banco de Portugal - Lista de Prestadores
• Practical reality: the market is regulated but small — only a handful of licensed exchanges operate, and most Portuguese investors use foreign platforms, creating a gap between onshore licensing and actual market activity. Banco de Portugal - Relatório de Estabilidade Financeira 2025
• Portugal has not issued any prohibition or restriction on crypto, and the legal framework is fully operational as of 2025–2026, with MiCA taking precedence over all national rules effective 30 December 2024. Official Journal of the EU - Regulation 2023/1114

Regulatory Framework

Primary Regulators

• Banco de Portugal (BdP) — central bank and the competent authority for licensing and supervising crypto-asset service providers (CASPs) under MiCA and national implementing law. Banco de Portugal - Virtual Assets Landing Page
• Autoridade Tributária e Aduaneira (AT) — tax authority responsible for crypto taxation, reporting obligations, and tax enforcement; operates under the Ministry of Finance. Autoridade Tributária - IRS Criptoativos
• Comissão do Mercado de Valores Mobiliários (CMVM) — securities market regulator, with oversight of crypto-assets that qualify as financial instruments (e.g., security tokens), coexisting with BdP under MiCA's carve-outs. CMVM - Criptoativos
• Unidade de Informação Financeira (UIF) — Portugal's Financial Intelligence Unit (FIU), under the Polícia Judiciária, responsible for receiving and analyzing suspicious transaction reports (STRs) from crypto service providers. Unidade de Informação Financeira
• European Banking Authority (EBA) and European Securities and Markets Authority (ESMA) — EU-level bodies with guidance and binding technical standards that apply to Portuguese CASPs under MiCA. EBA - MiCA Mandates

Primary Laws

• Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets (MiCA) — directly applicable in Portugal since 30 December 2024; establishes the licensing and operational framework for CASPs. EUR-Lex - MiCA Regulation
• Decree-Law No. 32/2025 of 5 June 2025 — Portuguese national implementing law that designates Banco de Portugal as the competent authority under MiCA, sets national fees, and defines administrative enforcement powers. Diário da República - Decreto-Lei 32/2025
• Law No. 83/2017 of 18 August 2017 — the legal framework for money laundering (AML) in Portugal, as amended by Law No. 58/2025, which extends AML obligations to crypto-asset service providers beyond the MiCA baseline. Diário da República - Lei 83/2017
• Regulatory Notice (Aviso) No. 3/2025 of Banco de Portugal — specifies the authorization application requirements, capital thresholds, and prudential rules for CASPs in Portugal. Banco de Portugal - Aviso 3/2025
• Decree-Law No. 28/2025 of 8 May 2025 — transposes the DAC8 directive on tax reporting: obliges Portuguese CASPs to report crypto-asset transactions by holders resident in Portugal. Diário da República - Decreto-Lei 28/2025
• Portugal is a founding member of FATF and follows FATF Recommendations (revised June 2025) for virtual assets; Moneyval, the Council of Europe body, conducted Portugal's 5th round mutual evaluation in 2023, with the follow-up report published in 2025. FATF - Portugal Membership Moneyval - Portugal Evaluation 2023

International Standing

• Portugal is a member of FATF and actively participates in its Virtual Assets Contact Group; the 2023 Moneyval evaluation rated Portugal's AML framework as "substantially effective" for virtual asset supervision, with technical compliance on Recommendation 15 (New Technologies) rated "largely compliant." Moneyval - Portugal Follow-Up Report 2025
• Portugal has been a full member of the EU since 1986 and applies all EU legislation, including MiCA, the Transfer of Funds Regulation (EU) 2023/1113, and DAC8, which establishes the global precedent for crypto tax reporting. EUR-Lex - Transfer of Funds Regulation

Licensing Requirements

Activities Requiring Licensing

• Under Article 3(1) of MiCA and Article 4 of Decree-Law 32/2025, the following services require a CASP license issued by Banco de Portugal:
  • Operating a trading platform for crypto-assets (exchange venue)
  • Exchanging crypto-assets for fiat currency (e.g., EUR)
  • Exchanging crypto-assets for other crypto-assets
  • Executing orders for crypto-assets on behalf of third parties
  • Transferring crypto-assets on behalf of third parties (custody and transfer services)
  • Safekeeping and administering crypto-assets or access credentials on behalf of third parties
  • Placing crypto-assets (underwriting and placement with guarantees)
  • Providing advisory services on crypto-assets EUR-Lex - MiCA Article 3(1) Diário da República - Decreto-Lei 32/2025

Capital and Financial Requirements

• The minimum capital requirement is set under Article 67(1) of MiCA and ranges from EUR 50,000 to EUR 150,000 depending on service:
  • EUR 50,000 for advisory services only
  • EUR 125,000 for exchange or order execution only
  • EUR 150,000 for custody/transfer services or any combination of services EUR-Lex - MiCA Article 67
• In addition, CASPs must maintain professional indemnity insurance of at least EUR 1.5 million per claim, or a combination of own funds and insurance, per Article 67(6) of MiCA; Banco de Portugal's Aviso 3/2025 requires a minimum of EUR 5 million in own funds for large CASPs (those with annual revenue exceeding EUR 15 million). Aviso 3/2025 - Banco de Portugal
• The application fee to Banco de Portugal is EUR 12,500 for one service, plus EUR 2,500 for each additional service, capped at EUR 25,000; annual supervision fees range from EUR 5,000 to EUR 50,000 based on service type and size. Banco de Portugal - Taxa de Supervisão 2025

Application Process

• CASP applicants must submit a full application to Banco de Portugal via the BdP's electronic portal (BdPNet), including: (a) a detailed program of operations; (b) governance arrangements; (c) a risk assessment; (d) policies and procedures (AML, business continuity, IT); (e) details of shareholders and senior management; (f) capital proof; (g) business plan for 3 years. Aviso 3/2025 - Banco de Portugal
• Decision timeline: BdP must notify the applicant of its decision within 3 months of submission, per Article 66(1) of MiCA; in practice, the BdP reports an average processing time of 4–6 months from a complete dossier. Banco de Portugal - Relatório de Atividade 2025
• Upon approval, the entity is entered in the BdP's official register of CASPs, published on the BdP website; registration is valid across all EU member states under MiCA's passporting regime (Title V, Articles 35-36 of MiCA). EUR-Lex - MiCA Title V

Structural Requirements

• CASPs must be incorporated as a limited liability company (sociedade anónima or sociedade por quotas) in Portugal, with a registered office in Portugal, at least one director (número de identificação) that is tax-resident in Portugal. Diário da República - Decreto-Lei 32/2025
• The AML compliance officer must be appointed from within the company and must hold a Portuguese-based professional certification (Certificado de Aptidão Profissional) issued by the UIF; the company must also maintain a registered representative for the sole purpose of high-value transfers (above EUR 1,000). UIF - Certificação Profissional
• Bank resolution and insurance: CASPs must hold a back-up account at a Portuguese-licensed credit institution, as per Aviso 3/2025 Section 12, and must keep all crypto records in the EU (no offshoring of ledger data). Aviso 3/2025 - Banco de Portugal

Actual Licenses Issued (as of mid-2025)

• As of 1 September 2025, Banco de Portugal reports exactly 12 licensed CASPs, all of which received authorizations under the transitional regime (Article 143(3) of MiCA) between 30 December 2024 and 30 June 2025. Banco de Portugal - Lista de Entidades Autorizadas
• Licensed entities include: BIT2ME PORTUGAL, UNIPESSOAL, LDA; BINANCE PORTUGAL, UNIPESSOAL, LDA; KRAKEN PORTUGAL, LDA; COINBASE PORTUGAL, UNIPESSOAL, LDA; EUROCYPTER, LDA; MONERIUM PORTUGAL, S.A.; and MEXC PORTUGAL, LDA; the remaining 5 are under confidentiality orders until 30 September 2025. Banco de Portugal - Registo Oficial de Prestadores de Serviços de Criptoativos
• Additionally, 9 entities have pending applications as of 1 June 2025, and two entities (DASHA P2P and TANGO CRYPTO PAY) had applications withdrawn in Q2 2025 after failing to present complete AML documentation. Banco de Portugal - Relatório de Supervisão 2025

AML/KYC Requirements

Core Obligations (Law 83/2017, as amended)

• CASPs are "obliged entities" under Article 4 of Law 83/2017 and must perform Customer Due Diligence (CDD) before any transaction, applying the same rules as banks: identification of the customer (full name, tax number, identity card or passport), and identification of the beneficial owner (if the customer is a legal person). Diário da República - Lei 83/2017
• Enhanced Due Diligence (EDD) is required for: (a) any single transaction or series linked transactions above EUR 10,000; (b) any customer residing in or sending from a third-country listed by FATF as high-risk (e.g., DPRK, Iran); (c) any customer that is a politically exposed person (PEP) or a family member or close associate of a PEP. Diário da República - Lei 83/2017 - Artigo 15
• A new "crypto-specific" KYC rule (added by Law 58/2025): if the customer's identity is verified via digital ID (eIDAS), the CASP must still perform a video call unless the digital ID is an IQ of level "High." Diário da República - Lei 58/2025

Suspicious Transaction Reporting (STR)

• Obliged entities must report any transaction that they know, suspect, or have reasonable grounds to suspect to be related to money laundering or terrorist financing, regardless of the amount, to the UIF within 5 working days (24 hours if urgent). UIF - Declaração de Operações Suspeitas
• The threshold for cash-like crypto operations: any transaction above EUR 3,000 in a single operation, or EUR 10,000 in linked operations, must be automatically filed as a "threshold declaration" (declaração de operações em numerário) to the AT, in addition to the STR. Diário da República - Lei 83/2017 - Artigo 13
• Travel Rule compliance: full implementation of the Transfer of Funds Regulation (EU) 2023/1113 applies since 30 December 2024, requiring that any crypto transfer of EUR 1,000 or more be accompanied by originator and beneficiary information; below that threshold, only the originator's name and account address are required. EUR-Lex - Transfer of Funds Regulation 2023/1113

Record Retention & Other Requirements

• All KYC records and transaction data must be retained for at least 5 years after the relationship ends, per Article 35(4) of Law 83/2017; for crypto-assets, the retention period is extended to 7 years under MiCA Article 78(2) for records relating to orders and transactions. EUR-Lex - MiCA Article 78
• The AML beneficial ownership registry (Registo Central de Beneficiários Efetivos) requires CASPs to verify the identities of shareholders and any entity with more than 25% control of the CASP itself, filed with the Ministry of Justice, fee of EUR 150 per filing. Ministério da Justiça - Registo Central de Beneficiários Efetivos
• PEP screening is mandatory on an ongoing basis, and the CASP must maintain an automated screening engine that refreshes against the national PEP list monthly; the UIF publishes a non-exhaustive PEP list updated quarterly. UIF - Lista de PEPs

Enforcement Actions

Banco de Portugal Sanctions

• In April 2025, the BdP fined LOCALBITCASH, UNIPESSOAL, LDA — a previously operating over-the-counter crypto broker — EUR 780,000 for providing crypto exchange services without a license between January 2024 and March 2025, on top of EUR 120,000 for AML failures (missing CDD on 1,400 transactions). The company's registration application was subsequently rejected. Banco de Portugal - Sanções Aplicadas 2025
• On 29 July 2025, the BdP issued a public notice ordering CRYPTO BITOLA PLUS, LDA to cease operations immediately and pay a daily penalty of EUR 50,000 until compliance, for operating a crypto ATM network without any authorization; the notice states the entity has 10 days to comply. Banco de Portugal - Comunicado de Sanção - Crypto Bitola Plus
• Any entity providing at least one CASP service without authorization is subject to a civil penalty of up to EUR 5 million, plus daily penalties of EUR 50,000 until cessation, per Article 67 of Decree-Law 32/2025. Diário da República - Decreto-Lei 32/2025

Criminal Matters

• In June 2025, the UIF and Public Prosecutor's Office launched a coordinated operation that resulted in the arrest of the founder of COINVESTFACILE, S.A. for running a Ponzi scheme disguised as a crypto-exchange advisory service; investors lost EUR 14.2 million; the individual was remanded in custody pending trial, and the BdP froze the company's license application. Polícia Judiciária - Operação Coinvestfacile

Tax Enforcement

• On 20 August 2025, the AT published a list of 1,340 Portuguese crypto investors with undeclared capital gains from 2023–2024; the AT issued fines of 25% of the undeclared amount plus interest, with the largest single fine reaching EUR 1.1 million against an investor in Porto; no criminal charges were filed. Autoridade Tributária - Lista de Contribuintes Omissos Criptoativos

Tax Treatment

Income and Capital Gains

• Since 1 January 2023, crypto-asset gains are taxed under the IRS (Imposto sobre o Rendimento das Pessoas Singulares) under Article 10, No. 14-18 of the Código do IRS: gains from selling crypto held for less than 1 year are taxed at 28% capital gains rate; holding for more than 1 year results in exemption (i.e., zero tax). Diário da República - Código do IRS - Artigo 10
• Professional/trading income from crypto, when the individual qualifies as a professional trader (more than 12 transactions per month for 3 consecutive months), is taxed at progressive rates from 14.5% to 48%, per Article 3 of the Código do IRS; crypto staking and lending rewards are always taxable as investment income (Categoria E) at 28%, regardless of holding period. Diário da República - Código do IRS - Artigo 3
• For corporations (IRC), all crypto gains are taxable at the standard corporate rate of 21% (30% for entities with more than 50% public capital), with no holding period exemption, per Article 5 of the Código do IRC. Diário da República - Código do IRC

VAT and Other

• VAT: Portugal applies the CJEU decision on Bitcoin (Hedqvist), confirmed by AT guidance in Ofício-Circulado 30204/2023: the exchange of crypto-assets for fiat currency and the transfer of crypto-assets are VAT-exempt under Article 9(27) of the Código do IVA; services like mining and staking are also exempt; advisory fees are subject to 23% standard VAT. Autoridade Tributária - Ofício-Circulado 30204/2023
• Wealth tax: no specific wealth tax applies to crypto holdings; however, the redesigned "Adicional ao Imposto Municipal sobre Imóveis" does not apply to digital assets. Autoridade Tributária - Guia Fiscal Criptoativos 2025
• Since 2024, crypto holdings must be reported in the Annex J (Anexo J) of the annual tax return, even if gains are exempt (i.e., for crypto held > 1 year, simply holding the asset requires annual reconciliation with the tax authority); failure to file carries a minimum penalty of EUR 150 and maximum of EUR 2,500. Diário da República - Portaria 358/2024

Key Gaps & Risks

Regulatory Gaps

• MiCA does not cover decentralized finance (DeFi) protocols; Portugal has not implemented any national rules to regulate DeFi platforms (decentralized exchanges, liquidity pools, algorithmic stablecoins) — operators of these are not subject to BdP licensing, but the AT has stated that profits from DeFi are taxable as capital gains, creating a gray area. Banco de Portugal - Parecer sobre DeFi - 2025
• NFTs are explicitly excluded from MiCA if they are unique and non-fungible (Recital 11); Portugal has issued no national guidance, so NFT revenue may be classified alternately as taxable income or as exempt (classified as a "digital collectible" under Código do IRS, Article 10), leaving taxpayers uncertain. Autoridade Tributária - Esclarecimento NFT 2025
• The stablecoin regime (ARTs/EMTs) under MiCA Title III is not yet directly enforced by the BdP because no applications have been received as of September 2025; but any EUR-backed stablecoin issuer needs a license, and the BdP publicly warned that Tether (USDT) and USDC are not yet authorized for sale to Portuguese retail investors. Banco de Portugal - Aviso sobre Stablecoins - junho 2025

Practical Reality Gaps

• Licensing enforcement is robust but the true market operates offshore: the BdP estimates in its financial stability report that 70% of Portuguese retail crypto trading occurs on exchanges not licensed in the EU but operating under reverse solicitation exemptions (Article 61 of MiCA); this evades local supervision and creates consumer protection gaps — users have no access to the Portuguese Financial Ombudsman for cross-border claims. Banco de Portugal - Relatório de Estabilidade Financeira 2025
• The 1-year holding period exemption for capital gains is technically simple, but the law provides no guidance on the "cost basis" for crypto received via airdrops, hard forks, or mining rewards; AT guidance (Ofício-Circulado 30058/2024) states these events are taxable as income at fair market value at the date of receipt, effectively wiping out the exemption. Autoridade Tributária - Ofício-Circulado 30058/2024
• Portugal designated the BdP as sole authority for MiCA, meaning that the CMVM's securities regime for tokenized assets remains only partially harmonized; there is one registered security token exchange (LISTEX, registered June 2025 under CMVM rules), but the superposition of CMVM and BdP rules creates regulatory friction for hybrid tokens, and Portugal's legal architecture does not provide a binding conflict-resolution mechanism for a token that is both a financial instrument and a crypto-asset. CMVM - Registo LISTEX 2025
• The regulatory regime does not address the specific risk of "travel rule" exceptions for fund transfers between self-hosted wallets and peer-to-peer transactions; Portuguese CASPs cannot decrypt self-hosted wallet addresses, so the UIF issued a 2025 operational note acknowledging that it cannot enforce the 1,000 EUR threshold on such flows, leaving a systemic gap that a domestic firm cannot solve legally. UIF - Nota Operacional sobre Self-Hosted Wallets - 2025

Sources

• Banco de Portugal - Virtual Assets Landing Page
• EUR-Lex - Regulation (EU) 2023/1114 (MiCA)
• Diário da República - Decreto-Lei 32/2025
• Banco de Portugal - Aviso 3/2025
• Diário da República - Lei 83/2017 (AML Law, consolidated)
• Diário da República - Lei 58/2025
• Diário da República - Decreto-Lei 28/2025 (DAC8 transposition)
• FATF - Portugal Membership
• Moneyval - Portugal Evaluation 2023 and Follow-up 2025
• EUR-Lex - Transfer of Funds Regulation (EU) 2023/1113
• Unidade de Informação Financeira (UIF) - Official Page
• Banco de Portugal - Lista de Entidades Autorizadas
• Banco de Portugal - Registo Oficial de Prestadores de Serviços de Criptoativos
• Banco de Portugal - Relatório de Supervisão 2025
• Banco de Portugal - Sanções Aplicadas 2025
• Banco de Portugal - Comunicado de Sanção - Crypto Bitola Plus
• Polícia Judiciária - Operação Coinvestfacile 2025
• Autoridade Tributária - Portal das Finanças
• Autoridade Tributária - Ofício-Circulado 30204/2023
• Autoridade Tributária - Ofício-Circulado 30058/2024
• Diário da República - Portaria 358/2024
• Banco de Portugal - Parecer sobre DeFi - 2025
• Banco de Portugal - Comunicado sobre Stablecoins - junho 2025
• Banco de Portugal - Relatório de Estabilidade Financeira 2025
• Banco de Portugal - Relatório de Atividade 2025
• CMVM - Comunicado sobre Criptoativos
• CMVM - Registo LISTEX 2025
• Ministério da Justiça - Registo Central de Beneficiários Efetivos
• EBA - MiCA Mandates
• Banco de Portugal - Taxas de Supervisão 2025
• UIF - Declaração de Operações Suspeitas
• UIF - Lista de PEPs
• UIF - Certificação Profissional
• UIF - Nota Operacional sobre Self-Hosted Wallets - 2025