Portugal’s Parliament Approves Tougher Crypto-Asset Regulation
On 3 December 2025, Portugal’s Parliament — via the Budget, Finance and Public Administration Committee (COFAP) — approved a decree aimed at tightening oversight and preventing money laundering through crypto-assets.
The new law transposes European Regulation 2023/1113 into Portuguese legislation. Under the rules, crypto-asset service providers (CASPs) based in Portugal will now be treated as regulated financial entities — just like banks — and subject to supervision under anti-money laundering (AML) and counter-terrorism financing (CTF) frameworks.
That means the national banking regulator — Bank of Portugal (BdP) — will oversee CASPs located domestically, as well as those from other EU countries but operating in Portugal under a permanent-establishment regime.
What the New Rules Change: From Crypto Wild-West to Regulated Finance
Crypto firms now under banking-style supervision
From 1 July 2026, any crypto-asset service provider in Portugal will have to adhere to the same compliance and reporting standards as traditional banks — including customer due-diligence, monitoring fund flows, and reporting suspicious transactions.
Full traceability of crypto-asset transfers when high risk is flagged
If a transaction or transfer is deemed “high risk” for money laundering or terrorist financing, institutions must trace the entire chain — including all participants involved — and ensure only authorised entities handle such transfers.
Dual-supervisor framework for comprehensive coverage
The law assigns supervisory responsibilities to both the Bank of Portugal and the Portuguese Securities Market Commission (CMVM), dividing oversight depending on the type of crypto-asset service or token. This is part of implementing the broader MiCA — the EU’s Markets in Crypto-Assets regulation — at a national level.
Crackdown on misleading crypto advertising
Alongside stricter regulatory oversight, the approved measures also include a resolution urging the government to clamp down on misleading or deceptive advertising of crypto-assets on social media and other public channels.
Why This Matters — And What It Means for Crypto Users & Providers
More security and reliability: By treating CASPs like banks, the law aims to protect consumers from fraud, ensure transparency of funds, and curb misuse of crypto for illicit activities.
Clearer legal environment: Crypto firms gain a defined regulatory status — reducing ambiguity about their obligations, licensing, and operations under Portuguese law.
Potential slowdown for unlicensed operators: Entities offering crypto services without proper authorisation will now be subject to stricter scrutiny; unregulated platforms may struggle to comply or be excluded.
Boost for institutional and mainstream adoption: With proper supervision and oversight, investors, businesses and banks may become more comfortable using crypto services — potentially accelerating adoption in regulated finance.
What to Expect Next
The new rules are set to take effect from 1 July 2026 (pending final global approval and presidential promulgation).
Crypto-asset service providers should prepare for licensing or registration under the new regime — including compliance with AML/CTF obligations, reporting requirements, and supervisory oversight.
Users and investors should monitor which platforms are registered under the new law — to avoid dealing with unregulated providers after the enforcement date.
Conclusion
With the December 2025 approval of the crypto-asset regulation, Portugal has taken a major step to bring the crypto sector under formal financial supervision. By aligning with EU-wide standards and holding crypto firms to the same AML/CTF rules as banks, this reform aims to increase transparency, protect consumers, and build trust — potentially opening the door for safer and broader adoption of crypto in Portugal and beyond.
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