30 October 2025

Portugal to implement MiCA

Portugal is one of the few EU Member States where the Markets in Crypto-Assets (MiCA) is not in effect. This delay stems from a period of parliamentary instability, including two snap elections in two years, which resulted in a delayed adoption of the necessary implementation measures. Recently, however, the Portuguese government has submitted a law to parliament to implement MiCA, and parliament has approved the proposal.

Law proposal n.º 32/XVII/1ª regulates and establishes:

1. The designation of national competent authorities responsible for applying MiCA

2. The sanctions regime for administrative offenses committed in violation of MiCA

3. The transitory period during which virtual asset service providers licensed in the previous regime can continue to operate before requiring a MiCA license

1. Designation of national competent authorities

The proposed law establishes a division based on MiCA chapters. The Bank of Portugal will oversee prudential requirements and licensing requests for crypto-asset service providers (CASPs), as well as supervision of issuers of asset-reference tokens and e-money tokens. The Portuguese Securities Commission (CMVM) will supervise market abuse rules, obligations of crypto asset service providers, trading platforms, and issuance of crypto assets other than asset-reference tokens or e-money tokens.

This proposed dual supervisory model – where both supervisors (banking and finance) share oversight on the same market – represents a departure from the current framework of financial regulation in Portugal. According to the proposal, both entities will need to coordinate when exercising their functions, meaning companies will be subject to the powers of two entities.

2. Administrative sanctions regime

The proposal follows MiCA’s framework in identifying offenses that generate administrative liability for issuers, offerors to the public, trading platforms, and crypto asset service providers in general, while setting the monetary amount for fines.

3. Transitional period

The proposal establishes that virtual asset service providers that are currently registered with the Bank of Portugal can continue to provide services until December 30, 2025. After this date, these companies can only provide services once they obtain a license.

Industry comments and conclusions

While the proposal has been welcomed by many local companies, some members of business associations have expressed concerns regarding the transition regime. They argue that the proposed transition period is too short and does not provide sufficient time for virtual asset service providers to upgrade their licensing standing with the supervisory before the end of the year.

Regardless, the proposal has been approved by parliament and is expected to come into force shortly. As a result, 2025 will mark the beginning of MiCA-compliant licensing for crypto businesses operating in Portugal.