Is Crypto Legal in Portugal?

Cryptocurrency is legal in Portugal, though it is not recognized as legal tender. Virtual assets are not compulsory to accept at face value, and there is no legal protection of any kind offered by the Portuguese State or the Bank of Portugal regarding their use (1). The government recently argued that new rules on supervising digital asset transactions and combating money laundering in this sector will contribute to regulatory stability in the financial sector (2).

In October 2025, Parliament discussed three government legislative proposals to strengthen cryptocurrency regulation. One initiative transposes the European regulation known as MiCA into national law, defining rules for the authorization and operation of crypto asset service providers and establishing the Bank of Portugal and CMVM as responsible supervisory authorities (2). This regulation transposes European Regulation 2023/1114, which establishes common rules for issuers of asset-referenced crypto tokens, issuers of electronic money tokens, and crypto asset service providers (2).

"The proposals we discussed represent a decisive step in regulating the cryptocurrencies market in Portugal, strengthening supervision of this sector and ensuring the protection of consumers and investors."

A second interconnected regulation implements another European regulation that updates anti-money laundering measures to adapt them to the reality of transfers involving certain crypto assets. Service providers will now be treated as financial entities in terms of the obligation to implement preventive anti-money laundering measures (2). The new supervisory rules will have a longer transitional period, extending from December 30, 2025, to June 2026, and will require companies to respond in a timely manner to requests from supervisory authorities (2). Portugal's 2023 tax regime imposes a 28% tax on capital gains from crypto assets held for less than 365 days, while long-term holdings remain tax-free (1).

Source:
https://www.rfflawyers.com/en/know-how/newsletters/the-registration-of-entities-that-perform-activities-with-virtual-assets-in-portugal/4715/
https://www.theportugalnews.com/news/2025-10-17/new-cryptocurrency-rules-for-portugal/903858

Last updated: 19-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.