Bank of Portugal not qualified to evaluate crypto-asset services

The Bank of Portugal has announced today (Friday, January 3) that it does not have the required national legal regulations to receive and analyse applications from companies wanting to provide crypto-asset services in Portugal.

This is because it does not have the national regulations that dovetail with the new EU MiCA Crypto Regulatory Framework that came into force at the end of last year.

The Markets in Crypto Assets (MiCA) regulation, which received a majority 517 votes from European Parliament lawmakers in favour of the crypto licensing regime in April 2023, aims to protect investors and preserve financial stability, while allowing for greater innovation in the crypto asset sector. MiCA is also likely to attract operators and users to the market, as it is the first regulatory framework for crypto asset service providers (CASPs) at EU level.

MiCA established rules for the issuance, admission to trading, and operation of crypto assets, as well as requirements for the providers of crypto asset services. The European Blockchain Partnership (EBP) has been set up to specifically promote cooperation between member states on blockchain technology.

“As of December 30, 2024, (…) the provision of services with crypto-assets in the European Union became dependent on authorisation to be granted by the authority designated as competent in the national law implementing that Regulation”, explains the regulatory authority in a statement published on its website. (In this case the Bank of Portugal for Portugal).

“Banco de Portugal warns that, since the national law implementing the MiCA Regulation has not yet been published, the competent authorities for the authorisation and supervision of crypto-asset service providers remain to be defined, as well as the application and terms of the transitional regime”, states the BoP.

Since 2021, as the supervisor of anti-money laundering and terrorist financing, the Bank of Portugal has assessed and granted registration to 11 entities to carry out activities with virtual assets.

The supervisor led by Mário Centeno clarifies that these entities “may continue to carry out activities with virtual assets for which they are qualified” during the transitional period, remaining obliged to comply with national laws.

But this only applies to authorised entities whose activity has already started. Those who have not started activity do not benefit from the transitional regime and are prohibited from exercising activity with virtual assets, notes Banco de Portugal. According to the list released by the supervisor, only one entity is in this situation.

So the question is how long will it take the necessary required national legal diplomas to be created and ratified for new crypto-asset services companies to operate legally in Portugal?