Implementation of MiCA in Portugal

Since December 30, 2024, the Market in Crypto-Assets Regulation (MiCA) has been effective in the European Union. As such, any entity that wishes to issue a token, or provide services with crypto-assets such as transfer, custody, trade, or consulting – and is regulated under MiCA, must seek a license with a national competent authority in a selected EU Member State.

Despite the deadline set out in the regulation, some Member States have yet to take measures to implement MiCA and make it enforceable in their jurisdictions. Although most EU States have legal regimes applicable to crypto based on anti-money laundering directives, and so no legal vacuum occurs, the lack of national implementing rules may generate distortions in the market, by limiting the access of companies and businesses to an EU financial license (that can be passported to other EU Member States).

In Portugal, no measure for implementing MiCA has been enacted, and no transitory period (available according to the regulation itself) has been adopted. The uncertainty of the situation made the Bank of Portugal – the country’s central bank, and the local authority responsible for registering virtual asset service providers in the current legal regime – to issue a statement on January 3, 2025 to address the current situation.

In the statement, the Bank of Portugal declared, as the preventive anti-money laundering supervisor of the local market, that virtual asset service providers already registered in Portugal may continue to operate in accordance with local legislation (in this case, Law 83/2017 of August 18, 2024, and other instructions from the Bank of Portugal), and must comply with rules of the transfer of funds regulation. If a registered entity has not started its activity yet, then it cannot provide any service before a national law of implementation comes into force. Finally, the Bank of Portugal declared that is not competent to receive and process requests by new entities wishing to provide services under MiCA.

Until an implementation law is passed that defines (1) the duration of the transition period under MiCA, and (2) the national competent authorities responsible for the supervision of MiCA, only entities already registered with the Bank of Portugal, and which are actively providing services, may exercise economic activities with crypto-assets. Every other entity will need to wait for the law to come into force.

While the scenario is complex, prudent enactment of the implementation law is hoped to foster compliance.