The scope of the Portuguese AML Act has recently been expanded to include all legal entities involved in any of the below activities (on their own behalf or on behalf of their clients):
- exchanging cryptoassets for fiat currency.
- exchanging cryptoassets for other cryptoassets.
- transferring digital currencies from crypto-addresses/e-wallets to other crypto-addresses/wallets.
- storing or managing cryptoassets or any instrument that allows to control, store or transmit digital assets.
Opening an ICO Company in Portugal: Things to Be Kept In Mind
The AML/CFT Law establishes a number of requirements for entities trading in digital currencies. They include:
- Internal control. Individuals wishing to register a crypto exchange in Portugal are required to implement effective internal control & risk management policies/procedures.
- Identification & verification of information. Before conducting transactions worth more than one thousand euros, crypto exchanges must verify the identity of their clients, collect ID data & gather information on the origin & destination of funds (ultimate beneficial owners - for legal entities).
- Prompt notification. This involves informing Portuguese authorities about funds or other property associated with criminal activities or used to finance illegal activities.
- Refrain from carrying out any transactions associated with criminal activities or used to finance unauthorized activities.
- Refrain from providing services. If companies can’t fulfill their obligations to verify the accuracy of information, they must decline to conduct any transactions with their clients.
- Data retention. Those wishing to establish a cryptocurrency exchange in Portugal must keep all client-related documentation for 7 years from the date of termination of business relationships.
- Monitoring. If an activity is associated with any criminal activities, companies must treat such clients with enhanced scrutiny.
- Non-disclosure. Legal entities working with ICOs are prohibited from informing their clients & 3rd parties about reporting them to the relevant Portuguese authorities; nor are they allowed to disclose information about investigations carried out in connection with them.
- Learning. Crypto companies are required to provide AML training for all their employees.
How to Set Up a Crypto Company in Portugal
Prior to starting their business, entrepreneurs wishing to establish a cryptocurrency company in Portugal must be registered in the BoP Directory. Any change in information during the registration of a crypto company in Portugal must be updated within a maximum of 30 days.
Failure to comply with the registration requirements is punishable by fines of up to one million euros & other penalties.
Seeking to open a crypto company in Portugal? Need advice on crypto currency regulation in Portugal? Why not contact IQ Decision UK?