Cryptocurrency license Portugal
Portugal Cryptocurrency License — Overview of the Best Cryptolicense
Portugal might be the most crypto-friendly country in the world, as of 2021. The Portuguese Republic doesn’t tax the profit made by investing in cryptocurrencies and has recently established a very attractive framework for all sorts of crypto companies to come in.
Famous for its glorious navigators, its seafood dishes, its tasty vinho de Porto and it’s warm and peaceful climate, Portugal has always been a wonderful place. And it became even greater when the Banco de Portugal announced the Virtual Assets Service Providers framework.
It’s a straightforward, rational and effective framework. Unlike other European countries, the Portuguese Republic focuses on making sense and being clear and easy to deal with. This is an opportunity to seize. The Banco de Portugal has taken the necessary time to develop a comprehensive framework, whose role is not to police the crypto businesses, but rather to support them and put them in a position for growth and success.
A framework that further reinforce Portugal’s pro crypto strategy
Portugal has taken a positive and welcoming stance toward cryptocurrencies. Unlike other jurisdictions, the birth of a cryptocurrency license in Portugal is directly consequent to efforts made by the country’s authorities to step up in the crypto sphere.
This comes in line with the decision not to tax cryptocurrencies at all and to allow mining. The Portuguese Republic is willing to attract blockchain talents and means it. To attract wealthy crypto investors and groundbreaking entrepreneurs.
How to get a cryptocurrency license in Portugal?
What we have been referring to as the cryptocurrency trading license in Portugal here, is actually a simpler certification than a license. Basically, you are cleared to operate your crypto business by the Banco de Portugal after demonstrating your business model and your compliance measures.
The fact that it’s simple on paper doesn’t mean that it is an easy approval to get. The Banco de Portugal wants to empower credible and exciting candidates, on the basis of strong guarantees. Your business plan has to be comprehensive and persuasive, and you will be asked a minimum of subsistence for the project to ensure liquidity.
Serious projects shall not worry, they are more than welcome to present themselves in the Portuguese Republic and to benefit from a really crypto-friendly environment. This is basically the deal: if your project is real, Portugal is the place to make it happen.
What is the process to get the Portugal cryptocurrency license?
Despite not being a license as in other famous crypto-friendly jurisdictions such as Estonia or Malta, Portugal still has a defined roadmap and steps to follow. There are no secrets, preparation is key: gather the right documents and be ready to demonstrate professionalism in both the participants and the project.
Knowing what the regulating authorities are expecting from you is the number one obvious step. It’s made easier if you’re supported by a knowledgeable corporate services provider. Getting your background checks, IT agreements and demos, cash flow models and AML policies ready is the most important thing to do before you can get the green light.
Once everything is sorted out, clear and you are able to demonstrate the systems and the business to the Banco de Portugal, you’re practically set. Next comes the necessity to ground your project within the Portuguese Republic. Though advisable, you don’t need to reside there, but the company has to be operating from Portugal.
Residency and operating a crypto business in Portugal
Unlike other jurisdictions, one of the main appeals of the cryptocurrency license in the Portuguese Republic is linked to the residency status and the reality of settling down there. Portugal is not simply looking to increase their numbers of tech companies, they are betting on the future, by creating a real blockchain pool of companies and talents in the country.
This is a big difference to take into account when selecting the jurisdiction into which to register and to license your crypto business. Portugal has one of the best environments and arguably the most sensed framework, but it wants you to commit to the country.
Alternatives to Portugal to set-up your cryptocurrency business
As we saw, the Portuguese Republic is a very strong option and a committed player in the field of crypto-friendly countries. And it requires a commitment back: you have to invest yourself personally and financially. Which makes Portugal the perfect field for seasoned entrepreneurs or for very solid projects.
But what if you don’t want to move to another country, if your budget is limited or if your business model is fairly classical, like a cryptocurrency exchange platform?
Within Europe, Estonia is a popular and trusted framework, which requires a lesser front commitment than the Portuguese Republic, allows for 100% remote operation and is widely popular among cryptocurrency exchanges.
Many other countries might suit your needs even better, depending on who you are, what is your business plan, what is your budget, etc. A corporate services provider will give you directions and advice to sort out if Portugal is the right place to set-up your cryptocurrency company.
