Cryptocurrency license in Portugal: how to apply in 2022

In 2021, Portugal's Central Bank (Banco de Portugal) began issuing licenses for cryptocurrency exchanges within the country. Thus, the country confirmed its readiness to regulate the exchange between tokens and fiat currency, recognizing alternative methods of payment. Getting a cryptocurrency license in Portugal 2022 is not easy, but its presence opens up considerable prospects for the crypto-business.

Cryptolicense in Portugal: prerequisites

In 2018. Portugal adopted the Anti-Money Laundering Directive (AMLDV), and began implementing it in the country's laws.  The basic requirements of the AMLDV:

• Entities that work with viral assets/tokens must report it to the regulators;
• Any entity, both individuals and businesses, which operates in Portugal with cryptocurrency or virtual assets must register their activities;
• All individuals and businesses that work with cryptocurrency must file a declaration of a start-up with the tax and customs authorities;

The cryptocurrency directive is not just an anti-money laundering control. Its emergence is a recognition of alternative payment methods. Even though Portugal's officialcurrency is the euro, it is possible to get paid in tokens and pay for goods with Visa cryptocurrency cards. This possibility is a win-win situation for crypto-traders and crypto-investors.

Portuguese cryptolicense opportunities

The Portuguese Cryptolicense 2022 gives its holders the following opportunities:

• To exchange some tokens for others, as well as for fiat currency;
• Provide services for storing virtual assets in e-wallets;
• Transfer tokens between user accounts;
• Trade virtual assets.

Having an official license gives users confidence in the company's reliability, as it undergoes a thorough vetting process before being approved.

How to get a Portuguese cryptolicense

In order to get a permit, you first need to register a company. The ideal option is to come for permanent residency. The country welcomes investors and creates favorable conditions for them:

• For non-residents, there are the Portugal Golden Visa and D7 visa programs, which allow you to quickly get a residence permit and become a citizen in 5 years;
• Investors who have not been tax residents in Portugal in the last 5 years can enjoy tax benefits under a special program for non-residents. Among them are tax exemption for all foreign sources of income, no tax on inheritance, gifts, and a fixed rate of income tax of 20%;

If you do not plan to live in Portugal, be prepared that to register a company to rent an office, hire employees. It is desirable that one of the directors is a local resident, since it is assumed that the company will operate on the territory of Portugal.

Documents for opening a cryptolicense

In order to get a permit to work with cryptocurrency, you need to apply to the Banco de Portugal:

• A business plan detailing the company's activities;
• A certificate of no criminal record. The country actively combats money laundering, so all owners of the company and the director do not experience problems with the law;
• Papers detailing the internal risk management policies, taking into account local laws;
• Certificates that prove the financial solvency of the owners;

How to get a cryptocurrency license quickly in Portugal

The Banco de Portugal carefully reviews all cryptolicense applications, thoroughly checking all the details. If you are planning to run a crypto business in Portugal in 2022 and want to get a license quickly, contact IT OFFSHORE specialists and we will help you.