Portugal has often been referred to as a "Digital Asset's Paradise" due to its relatively favorable stance towards cryptocurrency and blockchain technology.
In Portugal, cryptocurrency is regulated by the Banco de Portugal, the country's central bank, and the Securities Market Commission (CMVM), the regulatory body for the securities market.
In 2018, the Banco de Portugal issued guidelines on the use of cryptocurrency, stating that it is not considered a currency for legal purposes and is not subject to the same regulations as traditional currencies.
However, the use of cryptocurrency is subject to certain legal requirements, including the need to register with the CMVM if engaging in certain types of cryptocurrency-related activities, such as the operation of a cryptocurrency exchange or the issuance of initial coin offerings (ICOs).
In addition to these guidelines, Portugal has also implemented the Fifth Anti-Money Laundering Directive (5AMLD), which requires businesses that deal in cryptocurrency to register with AUSTRAC, the country's financial intelligence agency and anti-money laundering regulator, and to comply with relevant regulations, including those related to anti-money laundering and counter-terrorism financing.
Other Factors :
Low taxes: Portugal has a relatively low corporate tax rate of just 21%, and also offers a "golden visa" program that allows non-EU citizens to obtain a residency permit in exchange for making a significant investment in the country. This has made Portugal an attractive destination for cryptocurrency businesses looking to establish a presence in Europe.
Regulatory clarity: Portugal has taken a proactive approach to regulating cryptocurrency and has issued clear guidelines on how businesses can operate in this space. This has created a more predictable and stable environment for cryptocurrency businesses.
Positive attitude towards technology: Portugal has a long history of embracing new technologies and has a thriving start-up ecosystem. This positive attitude towards technology has helped to create a supportive environment for the development of cryptocurrency and blockchain-based businesses.
Strong infrastructure: Portugal has a well-developed infrastructure and a highly educated workforce, making it an attractive location for businesses looking to establish operations in Europe.
Overall, Portugal's combination of low taxes, regulatory clarity, positive attitude towards technology, and strong infrastructure has made it an attractive destination for cryptocurrency businesses looking to establish a presence in Europe. The regulatory environment for cryptocurrency in Portugal is relatively supportive, with a focus on ensuring compliance with relevant laws and protecting consumers from potential risks.