Blockchain 2025 Comparisons

Portugal’s blockchain market has experienced a complex 12-month period characterised by significant regulatory uncertainty, continued investment growth, and positioning challenges within the evolving European cryptocurrency landscape. The country’s journey toward implementing the EU’s Markets in Crypto-Assets (MiCA) regulation has emerged as the defining factor shaping the sector’s immediate future despite Portugal being considered one of the best blockchain and crypto-economy hubs in the world.

The most significant development affecting Portugal’s blockchain market has been the delayed implementation of the MiCA regulation. While the EU regulation became effective on 30 December 2024, Portugal has faced critical implementation challenges. The country currently lacks domestic legislation to properly execute MiCA requirements, creating a regulatory supervision gap that has left crypto-asset service providers (CASPs) in limbo.

This regulatory uncertainty reached a critical point in early January 2025, when the Bank of Portugal announced it could no longer authorise or supervise cryptocurrency-related services due to the absence of national implementing legislation. The situation has created a paradoxical environment where previously registered CASPs can continue operating under transitional arrangements, but new market entrants face significant barriers to entry. However, it is expected that the required law will be in place in the coming months.

Despite regulatory challenges, Portugal’s blockchain sector has demonstrated remarkable resilience in attracting investment. The most striking indicator of market confidence is blockchain technology’s commanding 36% share of all venture funding in Portugal. This growth reflects continued international confidence in Portugal’s potential as a blockchain hub, despite ongoing regulatory uncertainties.

Portugal’s start-up ecosystem has shown strong blockchain adoption, with 22% of start-ups utilising blockchain technology. The fintech sector has been particularly active, with blockchain and crypto in first position in Portuguese fintech investment, according to the Portugal Fintech Report 2024. This concentration demonstrates the sector’s strategic importance within Portugal’s broader technology landscape.

The country has also witnessed the establishment of the first crypto investment fund registered with the Portuguese Securities Market Commission (CMVM), the 3 Comma Capital Global Crypto Fund, which manages EUR1 million in assets and invests in Bitcoin, Ether and Solana.

Portugal’s global cryptocurrency adoption ranking has fluctuated significantly, highlighting the market’s volatile positioning. While one report placed Portugal 14th globally in crypto adoption, another indicated a substantial drop from 38th to 58th place in Chainalysis rankings. This discrepancy reflects the complex nature of measuring cryptocurrency adoption and Portugal’s evolving market dynamics.

The country continues to benefit from crypto-friendly tax policies, particularly the absence of capital gains tax on long-term cryptocurrency holdings (over one year), though short-term holdings face a 28% tax rate introduced in 2023.

The implementation of MiCA’s domestic legislation represents the most critical factor for Portugal’s blockchain market over the next 12 months. Successful implementation could restore regulatory certainty and position Portugal as a leading European crypto hub. However, continued delays risk undermining the country’s competitive position and could drive blockchain companies to seek more regulatory-stable jurisdictions within the EU.

Portugal’s EUR59 million Blockchain.PT national agenda, supported by EU NextGenerationEU funds, demonstrates the government’s commitment to blockchain innovation. This initiative aims to create 26 exportable products and establish Portugal as a European blockchain leader, providing a foundation for long-term sector growth once regulatory clarity is achieved.

Portugal has rapidly emerged as a leading European hub for blockchain innovation, driven by a favourable regulatory environment, government support and a vibrant entrepreneurial ecosystem. The adoption of blockchain technology by businesses and individuals spans a diverse array of use cases, from cryptocurrencies and non-fungible tokens (NFTs) to tokenised financial products and decentralised finance (DeFi) applications.

Portugal’s blockchain ecosystem demonstrates strategic specialisation across decentralised finance (DeFi), asset tokenisation and security infrastructure. Five companies – Zharta, Lympid, Exclusible, Immunefi, and xMoney – exemplify distinct approaches to leveraging blockchain technology.

Zharta operates in the NFT and DeFi space, providing instant NFT-backed loans. Its platform allows users to collateralise NFTs and access liquidity without selling their digital assets. Zharta’s business model leverages smart contracts on permissionless blockchains, offering automated loan origination, valuation and liquidation processes. The company targets both retail NFT holders and institutional investors seeking exposure to NFT-backed lending.

Lympid focuses on the tokenisation of real-world assets, enabling fractional ownership and trading of traditionally illiquid assets such as real estate, art and collectibles. By issuing tokens on permissioned DLT networks, Lympid facilitates compliant investment opportunities for both retail and professional investors. The platform’s B2B services include white-label tokenisation solutions for asset managers and financial institutions.

Exclusible specialises in luxury NFTs and digital experiences, partnering with high-end brands to create and market exclusive digital collectibles and virtual assets. The company operates NFT marketplaces and metaverse platforms, targeting affluent consumers and brand communities. Exclusible’s business model combines primary sales, secondary market trading and brand engagement services.

Immunefi is a leading blockchain security platform, offering bug bounty programs and vulnerability disclosure services for DeFi protocols and smart contracts. The company connects white-hat hackers with blockchain projects, facilitating the identification and remediation of security risks. Immunefi’s B2B model serves DeFi platforms, exchanges and blockchain developers, providing a critical layer of risk management in an evolving regulatory landscape. While not directly engaged in token issuance or trading, Immunefi’s activities intersect with legal issues around cybersecurity, data protection and contractual liability.

xMoney provides crypto payment infrastructure for merchants and e-commerce platforms, enabling seamless acceptance of cryptocurrencies alongside traditional payment methods. The company’s solutions include payment gateways, invoicing and settlement services, targeting both retail and B2B clients. xMoney’s business model relies on integration with both permissioned and permissionless blockchain networks, offering compliance features such as KYC/AML screening and transaction monitoring.

Under Portuguese law, the ownership of crypto-assets is not yet legally defined based on control through a private cryptographic key. However, because it confers control over the asset, having the private key is typically regarded as proof of ownership in practice.

Likewise, there is no legal definition for the finality of transfers on a blockchain. Nevertheless, it is commonly understood to be the moment where a transaction on the network becomes irreversible.

It is also important to note that while ownership and transfer finality are not specifically defined by the MiCAR, which is directly applicable under Portuguese law, it still places requirements on CASPs. These include specifications for transaction security, asset custody and transparency. Also, the Transfer of Funds Regulation, which established the “travel rule” to guarantee the traceability of transfers of crypto-assets, further enhances this framework.

All things considered, these responsibilities give the ideas of control, security and finality in crypto-asset transactions more operational structure and clarity.

The MiCAR now largely regulates the proper characterisation of crypto-assets in Portugal, contributing towards their uniform treatment under the law.

• Asset-referenced tokens (ARTs): A type of stablecoin that aims to maintain a stable value by referencing a basket of fiat currencies, commodities or other assets.
• E-money tokens (EMTs): Another form of stablecoin pegged to a single fiat currency, functioning similarly to electronic money.
• Utility tokens: Tokens intended to provide digital access to a good or service, available on a distributed ledger and only accepted by the issuer.
• Other crypto-assets: A category that covers all digital assets not qualifying as ARTs, EMTs, or financial instruments under existing EU law (such as MiFID II).

Crucially, security tokens are not covered by MiCAR and are still subject to the current financial securities laws. In these situations, the classification needs to be decided by a legal evaluation based on the features and economic purpose of the token.

The distinction between tokens as “securities”, “commodities”, or “utility instruments” is not always clear and frequently necessitates case-by-case analysis, despite MiCAR’s more structured approach.

To determine whether a crypto-asset is subject to MiCAR, MiFID II, or other applicable laws, market participants are expected to perform comprehensive legal and regulatory assessments, frequently in consultation with national regulators like the Portuguese Securities Market Commission (CMVM) or the Bank of Portugal.

Both national laws and EU-level frameworks serve as the foundation for Portugal’s legal and regulatory definition of tokenised securities, or traditional financial instruments like shares or bonds issued or represented through distributed ledger technology (DLT).

Transferable securities are defined broadly under the Portuguese Securities Code to encompass not only conventional instruments but also any representations or documents that represent comparable legal rights and are marketable. As long as they grant economic rights and are negotiable, tokenised versions of shares or bonds can be classified as “securities”.

Decree-Law No 66/2023, of 8 August, which incorporates the EU DLT Pilot Regime (Regulation (EU) 2022/858) into Portuguese law, added more clarification. By modifying existing legal frameworks to accommodate DLT, this regime makes it easier to issue, trade and settle tokenised financial instruments. Crucially, it acknowledges tokenised securities as legitimate book-entry securities, bringing them into line with conventional securities stored in centralised registries.

The Portuguese Securities Market Commission (CMVM) is the primary regulator responsible for determining whether a token qualifies as a security. This classification is based on a functional and case-by-case examination of the token’s attributes, such as whether it grants the holder a portion of the issuer’s profits or a right to income.

The MiCAR governs the classification and regulation of crypto-assets whose value is tied to another asset. These assets are commonly referred to as “stablecoins”. E-Money Tokens (EMTs) and Asset-Referenced Tokens (ARTs) are the two main categories into which MiCAR divides stablecoins, and each is governed by different regulations.

EMTs are based on a single official fiat currency, like the US dollar or the euro, and thus have a constant value. EMT issuers need to be approved by the EU as credit or electronic money institutions. They must keep liquid reserves to support the issued tokens, publish a thorough white paper outlining the token’s guarantees and structure, and guarantee that holders have a direct claim on the issuer for redemption at par value. USDC, based on the US dollar, is an example of an EMT.

By referencing a variety of assets, such as a mix of fiat money, commodities or other crypto-assets, ARTs seek to stabilise their value. ART issuers need to be EU-based legal entities that have been approved by the appropriate national regulatory body.

Those entities must publish a thorough White Paper, put strong governance arrangements in place, and keep adequate reserves of the mentioned assets.

Portuguese law does not expressly consider any digital assets other than the ones already covered above (eg, tokenised securities, crypto-assets and stablecoins). With regards to non-fungible tokens (NFTs), the only reference arises from MiCAR, which has been applicable in Portugal since 30 December 2024, and its sole purpose is to exclude NFTs from its scope: MiCAR does not apply to crypto-assets that are unique and fungible with other crypto-assets, including digital art and collectibles. Nonetheless, the exclusion of NFTs from MiCAR’s scope is dependent on complying with those two characteristics, since (i) the fractional parts of an NFT should not be considered unique and non-fungible and (ii) the issuance of crypto-assets as NFTs in a large series or collection should be considered an indicator of their fungibility. When assessing and classifying crypto-assets, competent authorities are told to adopt a substance over form approach whereby the features of the crypto-asset determine the classification and not its designation by the issuer. Where an NFT does not meet these criteria, it should be characterised as a crypto-asset under the relevant categories provided in MiCAR (please refer to 2.2 Categorisation).

The use of digital assets as means of payment in Portugal is not prohibited, but they are not considered legal tender. Although their use is permitted to buy or sell goods or services, they come with associated risks and there is no supervisory authority or rules to ensure their use is safe. In addition, merchants are not required to accept payments with digital assets.

Digital assets are not considered to be real currency, with the exception of EMTs, which are deemed to be electronic money and, consequently, fall under the definition of funds provided in Decree-Law No 91/2018, of 12 November, which transposed Directive (EU) 2015/2366 on payment services in the internal market into Portuguese law.

The euro and other currencies issued by central banks are legal tender and perform the following three essential functions of money:

• medium of exchange (they can be used to purchase any goods and services);
• unit of account (as their value is relatively stable over time, they can be used to assign prices to goods and services); and
• store of value (as their value remains relatively stable over time, they can be stored for long periods to purchase goods and services in the future).

The digital euro, which is currently under assessment at the EU level, is not a crypto-asset, since it would be:

• a real payment instrument, accessible to all and exchangeable for euro banknotes and coins;
• issued under the responsibility of the European Central Bank and euro area national central banks; and
• an EMT (and, as such, funds).

As Portuguese law stands at the time of writing, there is no regime governing the creation, perfection and enforcement of security interests over digital assets. Accordingly, parties seeking to use digital assets in collateral arrangements must ensure compliance with general rules applicable to the security interests over proprietary rights in Portugal, such as the pledge over movable assets, under the Portuguese Civil Code. Pursuant to this regime, the creation of a pledge over digital assets is subject to the following requirements:

• execution of a written pledge agreement;
• delivery of the pledged asset, or document evidencing ownership over such asset, to the pledgee; and
• where applicable (ie, in relation to tokenised securities), registration in the relevant registry (eg, commercial registry, book of shares, etc).

Where digital assets are deposited with a third-party custody services provider, who has control over those digital assets or the private keys to them, a notice executed by the pledgor and the pledgee, addressed to the custodian, is required for the perfection of the pledge.

The legal enforceability of private contractual agreements carried out entirely or in part through smart contracts running on blockchain networks is not currently specifically addressed by any laws or binding court rulings in Portugal.

However, as long as the fundamental conditions of contract formation are met, such agreements may be accepted as legally binding under the general principles of Portuguese contract law.

If the parties’ intentions are clear and the contract’s content is dependable and easily accessible, electronic contracts can be enforceable under the Portuguese Civil Code, which does not impose strict formalities on most contracts.

The EU e-Commerce Directive, which is implemented by Decree-Law No 7/2004, of 7 January, further upholds the legitimacy of electronic contracts, including those that are carried out automatically, so long as they guarantee reliability, intelligibility and integrity.

However, it is important to note that certain types of contracts in Portugal still require specific formalities that cannot currently be fulfilled through smart contracts alone. For instance, transactions involving the transfer of real estate must be executed in a public deed and involve a notary, making it impossible for such agreements to be concluded exclusively through automated blockchain-based systems.

There are no specific frameworks in Portugal that apply to regulated firms or investment funds with exposure to digital assets. Where these digital assets are qualified as securities, the same rules applicable to the exposure to securities by regulated firms or investment funds shall apply.

Portugal has established a regulatory sandbox framework specifically designed to support innovation, including blockchain-based projects, known as Technological Free Zones (ZLTs). This initiative was formalised by Decree-Law No 67/2021, of 30 July, which made Portugal one of the first countries in the EU to adopt a controlled, state-sponsored environment for testing new technologies.

This legal framework allows entities to test innovative products, services and business models, such as those based on blockchain, AI or the Internet of Things, in a controlled and adaptable environment. The decree outlines the requirements for establishing ZLTs, including setting objectives, choosing test areas and distributing funding.

The Portuguese government distinguishes between two types of ZLTs:

• regular ZLTs, where all existing laws remain in force; and
• special ZLTs, which allow the temporary suspension or modification of certain legal standards, enabling the testing of solutions that are not yet compliant with the existing regulatory frameworks. Because of their versatility, special ZLTs are particularly well-suited for blockchain-based projects that might otherwise run into legal issues.

As referred to in 4.1.1 Regulatory Overview and 4.1.4 Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Requirements, virtual assets service providers in Portugal are subject to Law No 83/2017, which establishes the AML/CFT law, as well as to any other specific sector regulation issued by the Bank of Portugal. Law No 83/2017 also includes the transposition into the Portuguese jurisdiction of the AML Directives approved by the EU, which have been developed pursuant to international standards issued by the Financial Action Task Force (FATF), of which Portugal has been a member since 1991.

Since Portugal has not yet adopted its MiCAR’s implementation law, no regulatory body has been appointed as national supervisor in relation to crypto-assets.

Notwithstanding, under the current applicable laws, namely, Law No 83/2017, the Bank of Portugal is the regulatory body responsible for supervising the registration of virtual assets service providers, as well as their compliance with the applicable AML/CFT regulations, under which it is authorised to apply penalties and fines in case of breach.

Several industry associations perform important quasi-regulatory roles even though Portugal does not have any official self-regulatory organisations with statutory jurisdiction over blockchain operations.

The most well-known of these is the Associação Portuguesa de Blockchain e Criptomoedas (APBC), a non-profit group that promotes the moral development of blockchain and crypto-asset technologies. In addition to providing resources and education to its members, APBC advocates for moral behaviour and acts as a crucial bridge between the public and private sectors.

Additionally, APBC is one of the founding members of the Federação das Associações de Cripto Economia (FACE), a federation that was established in co-operation with other significant blockchain associations in Portugal.

Other relevant organisations include the Portuguese Blockchain Alliance, which brings together stakeholders from the public, private and academic sectors to encourage blockchain adoption, and Portugal Fintech and the Associação Portuguesa de Fintech, which support blockchain-based start-ups.

Although they do not directly regulate, these groups promote self-governance in the sector by sharing best practices, promoting transparency and engaging in policy discussions with regulators such as the Bank of Portugal and the CMVM.

The Portuguese government has taken steps to assess and promote the use of blockchain technology through task forces and official initiatives. Notably, a working group comprising government agencies, private sector stakeholders and academics was established to develop a National Blockchain Strategy under the direction of INCoDe.2030. This strategy is still being discussed at a governmental level and is expected to be implemented in the coming years.

At the same time, the Portuguese government has supported the creation of BLOCKCHAIN.PT, a large-scale initiative known as “Descentralizar Portugal com Blockchain”.

This agenda comprises 56 organisations including 24 companies, 15 higher education and research institutions (ENESII), two associations, five public entities, and ten associated partners. The consortium operates with an investment exceeding EUR72 million. The agenda is structured around six vertical work packages addressing specific economic sectors: agriculture and agri-food; health and well-being; sustainable development and smart territories; sports, culture and leisure; data and knowledge economy; and digital asset management.

Four horizontal work packages complement the vertical initiatives, focusing on Management, Capacity Building, Innovation and Dissemination, and Interoperability. This structure ensures both sectoral innovation and cross-cutting technological development, creating synergies between different application domains while addressing fundamental challenges such as system interoperability and skills development.

The BLOCKCHAIN.PT agenda aims to launch 26 products with high export potential and scalability, demonstrating the strategy’s focus on creating commercially viable solutions with international market appeal. The dual meaning of “decentralising Portugal” reflects both the technological objective of implementing blockchain solutions and the geographical goal of distributing innovation activities beyond the Lisbon region, promoting balanced regional development.

Significant court decisions that specifically interpret or establish the legal framework for blockchain technology have not yet been rendered in Portugal. Because the Portuguese legal system, which has its roots in civil law, relies more on codified statutes than on case law, courts typically apply existing laws to new technologies rather than setting precedents through judicial rulings.

Although there have not been any relevant court cases that specifically address blockchain, guidelines for classifying crypto-assets have been published by the CMVM, which emphasises the need to evaluate each asset individually to determine whether it satisfies the legal requirements to be categorised as a financial instrument.

Additionally, the legal treatment of blockchain and crypto-assets by the CMVM and Bank of Portugal is also expected to be influenced by the MiCAR and the Distributed Ledger Technology (DLT) Pilot Regime.

The Bank of Portugal has been in charge of VASP registration and supervision under the AML/CFT framework. Entities offering services such as custody services, virtual asset transfers, and exchanges between virtual assets and fiat currencies have been required to register with the bank prior to starting operations.

The CMVM has also helped to clarify the regulatory environment. Tokens that represent rights or return expectations may be deemed securities and fall under its jurisdiction, per its guidelines for classifying crypto-assets. This approach requires a case-by-case analysis to determine the appropriate regulatory treatment of different crypto-assets.

Naturally, MiCAR will also enhance legal certainty for market participants in Portugal, supported by additional guidance from the Bank of Portugal and the CMVM on how to register as a CASP under Portuguese law.

Portugal has experienced a dramatic shift in its approach to cryptocurrency taxation, moving from a largely unregulated, “crypto-friendly” environment to a comprehensive and structured tax regime that took effect on 1 January 2023. This transformation reflects both the growing importance of digital assets in the global economy and the need for regulatory clarity. The new Portuguese tax framework addresses crypto-assets across three primary tax categories: personal income tax (PIT), corporate income tax (CIT) and value-added tax (VAT). While the regime introduces more rigourous taxation and reporting requirements, it also preserves certain advantages, particularly for long-term holders, making Portugal’s crypto tax landscape both complex and strategically significant for investors and businesses.

The Portuguese Personal Income Tax Code defines crypto-assets as any digital representation of value or rights that can be transferred or stored electronically using distributed ledger technology or similar technology. This definition is consistent with the European Union’s Markets in Crypto-Assets (MiCAR) regulation. Notably, non-fungible tokens (NFTs) are excluded from this regime for PIT purposes, meaning they are not subject to the same tax rules as fungible crypto-assets.

Within Portugal’s PIT system, crypto-asset income is divided into three main categories. Category B covers business and professional income, such as earnings from mining, transaction validation or the issuance of crypto-assets. For taxpayers with annual gross income not exceeding EUR200,000, a simplified regime applies: mining income is taxed on 95% of gross receipts due to environmental concerns, while other professional crypto activities are taxed on only 15% of gross income. The resulting taxable income is then subject to Portugal’s progressive PIT rates, which range from 14.5% to 53%, depending on total income.

Category E pertains to capital income, including passive earnings like staking rewards. This income is taxed at a flat rate of 28%, but taxpayers may opt to aggregate it with other income, potentially subjecting it to progressive rates. If staking rewards are received directly in crypto-assets, taxation is deferred until those assets are converted to fiat currency, allowing investors to accumulate rewards without immediate tax liability.

Category G addresses capital gains. The 2023 reform introduced taxation of short-term gains (from assets held less than 365 days) at a flat 28% rate, calculated using the First In, First Out (FIFO) method. Long-term capital gains (from assets held 365 days or more) are exempt from tax, provided the taxpayer or paying agent is based in an EU or EEA country, or a jurisdiction with a Double Tax Treaty or Tax Information Exchange Agreement with Portugal. This exemption does not apply to transactions involving non-cooperative jurisdictions.

For companies, crypto-asset income is included in the overall profit calculation and taxed at the standard CIT rate of 20% for entities resident in mainland Portugal. Unlike the PIT regime, which uses specific categories, corporate crypto income is generally treated as part of the company’s taxable profits. Smaller companies with gross annual income not exceeding EUR200,000, balance sheets under EUR500,000, and no legal audit requirement can benefit from a simplified CIT regime, where a 15% co-efficient applies to crypto-asset income that is not capital income or the result of net capital gains. In addition to the standard CIT rate, companies may also face municipal surtaxes up to 1.5% and state surtaxes that increase progressively with taxable profits, reaching up to 9% for profits exceeding EUR35 million.

Portugal’s VAT framework provides significant exemptions for crypto-asset operations. Most crypto-to-crypto and crypto-to-fiat transactions are exempt from VAT, in line with both Portuguese Tax Authority guidance and European Court of Justice precedent, aligning Portugal with broader EU approaches to VAT on cryptocurrencies. Mining operations, when considered as service provision, are also VAT-exempt, as is the exchange of cryptocurrencies for other cryptocurrencies. However, the provision of goods or services in exchange for virtual currency may still be subject to VAT if applicable.

The MiCAR mandates that crypto-asset issuers and CASPs must disclose the environmental impacts of their digital assets. In particular, MiCAR requires businesses to disclose information on energy consumption per crypto-asset, carbon emissions, carbon intensity and the use of renewable energy sources.

The European Securities and Markets Authority (ESMA) has outlined several of these disclosures, which include both quantitative and qualitative information, such as descriptions of network incentive structures and consensus mechanisms, as well as energy consumption and carbon footprint.

In addition to MiCAR, listed SMEs and large corporations in Portugal are required to submit comprehensive sustainability-related data, including how ESG considerations impact their strategy and performance, under the Corporate Sustainability Reporting Directive (CSRD), which expands upon the previous Non-Financial Reporting Directive.

Data privacy laws, particularly the General Data Protection Regulation (GDPR) and Law No 58/2019, of 8 August, which are directly applicable, present challenges for blockchain-based services in Portugal. The immutability of blockchain technology may conflict with key concepts like purpose limitation, data minimisation, and – above all – the “right to be forgotten”.

Although Portuguese regulators have not issued specific blockchain guidance, entities operating in this space are expected to stay compliant by using privacy-by-design strategies, such as encryption techniques or off-chain storage of personal data. Legal ambiguity still exists, especially when it comes to what constitutes a data controller in decentralised systems.