MiCA: Government has already approved the legislation for the adoption of crypto asset regulations in Portugal

It went almost unnoticed, but last week, the Government finally approved the new rules for crypto assets in the Council of Ministers. Now, all that's missing is the green light from Parliament, as the two bills approved at the Executive meeting still need to be approved by the Assembly of the Republic.

It should be noted that the entry of new companies into the sector has been prohibited since the end of last year due to a lack of legal framework. The Bank of Portugal (BdP) stated that it was awaiting the appointment of a national competent authority for the MiCA (Cryptoasset Markets) Regulation to begin receiving and assessing licensing applications for cryptoasset companies, as its lack of powers prevents the registration of new entities in the sector in Portugal, despite the European regulation coming into force in March 2025.

More precisely, since December 30th, Portugal no longer has a body that authorizes and supervises the provision of cryptoasset services.

Portugal is one of three countries in default of the MiCA (Markets in Crypto-Assets) legislation. Portugal has not yet adopted the regulation. However, last week, the Council of Ministers approved two bills aimed at regulating the country's cryptoasset market.

In a statement, the Council of Ministers announced that a bill was approved that defines the “competent national authorities, supervisory rules, sanctions and user protection mechanisms” and that includes “a transitional regime for entities already operating in the national market”.

In addition to this legislation, another was approved that "strengthens the traceability guarantees for payments in crypto assets," in a proposal aimed at combating money laundering and terrorist financing.

As early as early August, the Ministry of Finance had indicated that the legislative process for the adoption of MiCA was underway, with final approval expected soon. The announcement of the entity chosen to oversee crypto assets in Portugal is expected to be made at one of the next Council of Ministers meetings.

The MiCA regulation was approved in 2023 and will come into force that year. It is the European Union's first regulatory framework for cryptoassets, as well as for issuers and service providers in this area.

The rules cover issuers of consumer tokens, asset-backed tokens, and stablecoins. Service providers such as trading platforms and wallets where crypto assets are held are also covered by the regulation.