In recent years, Portugal has been seen as an attractive destination for enthusiasts and companies linked to the crypto-asset sector. However, the lack of a specific supervisory authority for providers of these services has raised concerns about market security and investor protection.
Absence of Specific Supervision in Portugal
To date, Portugal does not have a regulatory entity exclusively dedicated to the crypto-asset sector. The Bank of Portugal has a limited role in supervising crypto-asset exchange platforms, focusing only on the prevention of money laundering and terrorist financing. However, this supervision does not cover essential aspects such as consumer protection or financial stability.
The lack of clear regulation and a responsible entity for the sector has raised doubts about the credibility of the crypto-asset market in Portugal. This may make the country less attractive to institutional investors and startups looking for a regulated and secure environment.
The European Regulation for Crypto-Assets (MiCA)
To bridge these gaps and harmonize regulation within the European Union, the Markets in Crypto-Assets Regulation (MiCA) has been approved. This regulation aims to create a uniform regulatory framework for all member states, including Portugal.
Main Objectives of MiCA:
- Consumer and investor protection – Create clear rules for crypto-asset service providers and ensure greater transparency.
- Centralized supervision – Designate competent authorities for the supervision of crypto markets in member states.
- Prevention of financial risks – Introduce measures to prevent systemic risks and market abuse.
- Requirements for crypto-asset issuers – Regulate the issuance of stablecoins and other digital assets, ensuring greater stability.
With the entry into force of MiCA, it is expected that Portugal will have to align its legislation and create a regulatory body that complies with European guidelines. This will bring more legal certainty for investors and companies in the sector.
Impact of MiCA in Portugal
The implementation of MiCA will represent a significant change for the crypto sector in Portugal. Some of the main consequences include:
- Greater transparency and security for crypto-asset users.
- Mandatory registration and compliance for crypto-asset service providers.
- Possible increase in oversight by the Bank of Portugal or another entity to be designated.
Although regulation may bring challenges, it could also boost the credibility of the sector and attract more investment to Portugal.
Conclusion
The absence of a supervisory authority for crypto-asset service providers in Portugal is a problem that could compromise the security and development of the sector. However, with the implementation of the European MiCA regulation, it is expected that the country will have to adopt concrete measures to ensure effective supervision and investor protection. This change could position Portugal as a safer and more attractive market for crypto-assets, balancing innovation and regulation.
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