NextFin News - On December 13, 2025, Portuguese President Marcelo Rebelo de Sousa officially promulgated three legislative decrees that implement European Union regulations governing crypto-assets into national law. These include the European Market in Crypto-assets Regulation (MiCA), originally approved by the EU in 2023, which had not previously been applied in Portugal. The Presidential promulgation took place in Lisbon, following parliamentary approval by the Assembly of the Republic on December 5, 2025.
Despite enacting these rules, President Rebelo de Sousa expressed pronounced reservations concerning cryptocurrencies' nature, regulatory control effectiveness, taxation challenges, and systemic risks inherent in digital assets. A formal statement from the Presidency acknowledged that the existing European oversight framework is considered insufficient by the European Commission itself prior to strengthening the European Securities and Markets Authority’s (ESMA) role as a centralized supervisor. The President shares significant portions of these concerns but proceeded with promulgation to avoid Portugal incurring penalties for non-compliance, to ensure at least a foundational regulatory regime exists, and because the legislation empowers both the Bank of Portugal and the Securities Market Commission (CMVM) with supervisory authority alongside European bodies.
The enacted decrees particularly address anti-money laundering (AML) and counter-terrorism financing rules for crypto-asset operations per EU Regulation 2023/1113, and incorporate detailed supervisory provisions aligned with EU Regulation 2023/1114 (MiCA). Starting July 1, 2026, crypto-asset service providers authorized to operate in Portugal will be classified as financial entities subject to Bank of Portugal oversight, mandated to follow AML standards equivalently applied to banks. In cases of elevated money laundering risk, entities must trace full funds or crypto-asset flows and involved parties to ensure authorized processing of transactions.
Further, the legislation delineates supervisory responsibilities between the Bank of Portugal and the CMVM, fostering cooperation between these national regulators and their European counterparts to oversee the emerging sector more effectively.
This regulatory framework was approved with varied support among political parties, reflecting differing views on crypto regulation’s adequacy and approach within Portugal’s parliament. The anti-money laundering decree attained broad approval, while the MiCA-related decree saw abstentions and oppositions, notably from left-wing and some opposition parties, underscoring political-divergent perspectives on crypto risks and control measures.
The President also signed a separate decree implementing European Regulation 2024/886 concerning instant credit transfers in euros, underscoring Portugal's commitment to streamlined digital payments alongside crypto regulation.
The promulgation of these regulations occurs against a backdrop of escalating global efforts to regulate the notoriously volatile crypto markets. Portugal’s move aligns the country with EU-wide standards but highlights ongoing regulatory challenges, particularly gaps in effective control mechanisms and unresolved taxation complexities.
Underlying this cautious enactment are intricate considerations: cryptocurrencies’ decentralized and pseudonymous nature complicates taxation enforcement and AML efforts. Systemic risks arise from crypto market volatility and interconnections with traditional finance. The European Commission’s plan to empower ESMA reflects a trend toward centralized European oversight to curtail fragmentation and enhance enforcement capacity.
Portugal’s legislation marks a significant step by formally incorporating crypto-asset service provider supervision within the jurisdiction of established financial authorities—Bank of Portugal and CMVM—signaling a shift toward integrating crypto into the regulated financial ecosystem. This institutional involvement is crucial for improving risk monitoring, investor protection, and compliance enforcement.
Nevertheless, the President’s reservations underscore a cautious stance, recognizing regulatory gaps remain and that the current framework is a partial solution rather than a comprehensive safeguard. This realism is warranted given the evolving technological and financial landscape, which continuously tests regulatory adaptability.
From a market perspective, the new rules will increase compliance costs for crypto businesses operating in Portugal but are likely to improve market integrity and reduce illicit activities over time. The official classification of crypto-asset service providers as financial entities ensures that AML controls mirror those for traditional finance, which could enhance transparency and institutional trust.
Moreover, the effective cooperation mechanisms mandated between Portuguese and European regulators pave the way for harmonized supervision, vital for cross-border crypto operations pervasive in the digital asset realm. This reduces regulatory arbitrage risks and fosters consistency in enforcement.
Looking forward, Portugal’s experience will be instructive for other EU member states balancing innovation encouragement against the imperative for robust consumer and financial system protections. The transitional period leading up to July 2026 will be critical for market participants to adapt to new compliance norms.
This episode also reflects a broader global pattern where regulatory bodies accept crypto’s permanence but approach with caution, seeking frameworks that can adapt as technologies and markets mature. Enhanced data analytics, blockchain forensics, and international cooperation will be essential tools.
In summary, the Portuguese President’s promulgation of crypto-asset regulations with explicit reservations reveals a pragmatic and cautious embrace of emerging digital finance technologies. While aligning national law with EU standards reduces legal uncertainty and strengthens oversight, the acknowledged regulatory limits highlight continued vigilance and incremental policy evolution will be necessary. Markets, policymakers, and regulators must continue collaborative efforts to safeguard systemic stability, prevent illicit finance, and foster a sustainable crypto ecosystem capable of delivering innovation benefits without undue risks.
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