Cryptocurrency License in Portugal: Requirements and Procedure

Nikita Veremeev

29.08.2025 | 6 min read

Updated: 29.08.2025

In 2024, the volume of transactions with virtual assets in Europe exceeded €1.2 trillion, and Portugal entered the top 5 EU jurisdictions in terms of cryptocurrency sector growth. But behind this impressive growth lies a paradox: more than 60% of international crypto companies face licensing refusals due to non-compliance with Banco de Portugal’s requirements and errors in AML/KYC policies. Why do some projects obtain a cryptocurrency license in Portugal in 4 months and scale all over the EU, while others cannot complete the procedure for years and lose investments?

What truly underlies Portugal’s investment attractiveness for the cryptocurrency business? How to avoid common mistakes, ensure the international expansion of a crypto business, and use the free provision of services principle to enter EU markets? I see daily how entrepreneurs underestimate the nuances of cryptocurrency regulation in Portugal and miss strategic opportunities.

In this article, I will not just explain how to get a crypto license in Portugal but provide a practical guide: from choosing a business model and preparing documents to implementing compliance procedures and optimizing taxation. If you want not only to register a cryptocurrency company in Portugal but to build a sustainable international business – read to the end. Here you will find answers to key questions, get real cases from COREDO, and receive practical recommendations.

Cryptocurrency License in Portugal

Illustration for the section 'Cryptocurrency License in Portugal' in the article 'Cryptocurrency License in Portugal – conditions and procedure'
Cryptocurrency license in Portugal becomes a key element for companies and investors seeking to legally operate with digital assets in the country. The development of national regulation and the introduction of European standards like MiCA are significantly changing the rules for the entire cryptocurrency market.

Cryptocurrency Regulation in Portugal

Portugal: one of the few EU countries where cryptocurrency regulation is built on a combination of national legislation and pan-European standards. The Banco de Portugal plays a crucial role in licensing cryptocurrency businesses, issuing licenses for activities with virtual assets (virtual assets) since 2021 in accordance with the EU Directive 5AMLD (2018/843), the Anti-Money Laundering Law (AML Law), and FATF standards.

Banco de Portugal not only controls the registration of cryptocurrency companies but also their ongoing financial monitoring, the implementation of internal AML/KYC policies, and transaction transparency. In COREDO’s practice, we have repeatedly faced situations where even a strong business plan did not compensate for formal violations in client due diligence or insufficient detail in internal compliance procedures. This is why preparation for licensing begins with a deep audit of the business model and internal control.

Special attention is given to the legalization of income obtained through criminal means and interaction with European regulators. The regulator requires not only formal compliance with Directive 5AMLD but also the real implementation of international FATF standards, which is reflected in requirements for corporate structure, compliance officer, and internal audit.

Licensing of Crypto Exchanges and Platforms

A cryptocurrency license in Portugal is mandatory for companies engaged in:

exchange of cryptocurrency for fiat and back (crypto exchange license Portugal)
operations between different types of virtual assets
providing custodial (storage) services
activities of crypto exchanges and peer-to-peer platforms
conducting ICO/IEO, issuance and maintenance of stablecoins, DeFi products

Banco de Portugal clearly delineates the types of activities requiring licensing and imposes separate technological requirements on the platform: investor and user protection, transaction transparency, IT infrastructure resilience, and the presence of fraud prevention procedures. Solutions developed by COREDO for clients in the DeFi and custodial services sector always include modular compliance architecture, allowing business scaling without regulatory risks.

Registration of a Cryptocurrency Company in Portugal

Illustration for the section 'Registration of a Cryptocurrency Company in Portugal' in the article 'Cryptocurrency License in Portugal – conditions and procedure'
Registering a cryptocurrency company in Portugal is a multi-step process, including the choice of a legal form, obtaining the relevant license, and complying with local regulatory requirements. For a successful business launch, it is important to consider the requirements for corporate structure and real presence, detailed in the following subsections.

Let’s move on to the key aspects of forming a corporate structure and the requirements for the actual presence of the company.

Corporate Structure and Real Presence: Requirements

Registering a cryptocurrency company in Portugal requires strict compliance with the substance principle, requiring real business presence in the country. Key requirements include:

having a Portuguese legal address and office
at least one resident director (EU or Portuguese citizen)
corporate structure crypto company with transparent share allocation and leadership responsibility
a minimum capital for a crypto company: starting from 50,000 EUR (the amount may be higher for exchanges and custodial services)
confirmation of the sources of funds and the legality of investments

The experience of COREDO shows that formal fulfilment of these requirements is not enough: the regulator evaluates the real activities of the office, the presence of employees, business activity, and integration into the local business environment. In several cases, the COREDO team provided recruitment and training of local staff, assisted in opening a bank account for the crypto company, and built corporate management taking into account Banco de Portugal’s requirements.

Documents for Obtaining a Crypto License

The document package for registering a cryptocurrency company and applying for a crypto license in Portugal includes:

statutes and founding documents
crypto company business plan with financial forecasts, liquidity analysis, and business model description
internal AML/KYC policies, procedures of Due Diligence of clients, and a description of the internal control system
information about beneficiaries, ownership structure, and corporate governance
confirmation of the presence of a compliance officer with relevant experience
office lease agreement, confirmation of substance
bank certificates about depositing the minimum capital

In COREDO’s practice, detailed elaboration of the business plan and internal compliance documentation allowed clients to successfully pass the application review stages and obtain a cryptocurrency license in Portugal on the first try.

Timelines, Cost, and Reasons for License Denial

The procedure for obtaining a cryptocurrency license in Portugal consists of several stages:

registration of a legal entity and opening a bank account
Preparation and submission of the complete document package to Banco de Portugal
Preliminary audit and requests for additional information from the regulator
Decision-making and license issuance

The timeframe for obtaining a crypto license in Portugal usually amounts to 4–6 months but can increase if document revisions or additional beneficiary checks are required. The cost of a cryptocurrency license in Portugal consists of state fees (from 10,000 EUR), document preparation expenses, legal support, and compliance audit.

Main reasons for license denial: insufficient detail in the business plan, weak internal AML/KYC policies, opaque ownership structure, lack of substance, and errors in client due diligence. COREDO’s practice confirms: thorough preparation and proactive engagement with the regulator minimize the risk of denial.

Moving to the next stage: the implementation and adherence to AML/KYC procedures is a mandatory requirement for the successful operation of crypto businesses in Portugal.

AML/KYC for Crypto Business in Portugal

Illustration for the section 'AML/KYC for Crypto Business in Portugal' in the article 'Cryptocurrency License in Portugal – conditions and procedure'
AML/KYC for crypto business in Portugal is not just a formality but an integral part of the legal operation of companies involved with virtual assets. The strict requirements of Portuguese regulators imply the implementation of comprehensive standards, detailing of internal policies, and assigning the compliance officer role as a key figure in the anti-money laundering and counter-terrorism financing system.

Internal Policies and the Role of Compliance Officer

For successful operation of the cryptocurrency business in Portugal, it is critically important to develop and implement AML/KYC internal policies complying with both national legislation and international FATF standards. Key elements include:

appointing an experienced compliance officer with the authority to control and train staff
implementing client due diligence procedures (KYC, transaction monitoring, risk assessment)
regular internal audits and reporting of crypto companies
automation of financial monitoring processes and identification of suspicious activities

The COREDO team implemented comprehensive internal control systems integrated with the IT platform for clients, allowing not only compliance with Banco de Portugal’s requirements but also increased trust from investors and banking partners.

Compliance with FATF and 5AMLD Standards

Since 2021, Portugal has implemented the provisions of the EU Directive 5AMLD (2018/843), tightening the AML/KYC requirements for crypto companies. To fully comply with FATF and 5AMLD standards, it is necessary to:

ensure transaction transparency and traceability of all operations with virtual assets
conduct regular checks for money laundering derived from criminal activities
update internal AML/KYC policies according to legislative changes and market best practices
integrate automated monitoring and reporting systems

COREDO’s compliance solutions enable not only current requirements compliance but also quick adaptation to new regulatory standards, which is critical for business sustainability.

Taxes on Cryptocurrency in Portugal

Illustration for the section 'Taxes on Cryptocurrency in Portugal' in the article 'Cryptocurrency License in Portugal – conditions and procedure'
Taxes on cryptocurrency in Portugal have significantly changed in recent years: now certain operations with digital assets are subject to taxation, and it is important to consider the holding period of crypto assets and the peculiarities of different types of income. Let’s take a look at how cryptocurrency taxation is structured in Portugal and what legal optimization methods exist.

Taxation and Its Optimization

Portugal is traditionally considered one of the most lenient jurisdictions in the EU regarding cryptocurrency taxation. Personal incomes from cryptocurrency operations are not subject to personal income tax. However, for legal entities, the standard corporate tax (CIT) rate of 21% applies, plus municipal surcharges. The Portuguese Tax and Customs Authority (AT) requires transparent accounting of all operations and compliance with EU standards.

In COREDO’s practice, we recommend clients use the free provision of services principle for optimizing tax obligations during international expansion and structuring the business to apply double taxation avoidance agreements. It is important to consider tax risks associated with the classification of operations and income sources and to timely implement financial monitoring procedures.

Thus, smart tax planning and choosing optimal business structures create an additional advantage for investors looking to obtain a residence permit through crypto business.

Residency Through Crypto Business, Advantages for Investors

Opening a cryptocurrency company in Portugal unlocks the opportunity for obtaining residency through crypto business (residence by investment), which is especially relevant for investors from the CIS and Asia. To achieve this, one needs to:

register a company with an actual presence and contribute minimum capital
confirm investments and business activity
comply with the requirements regarding transparency of structure and sources of funds

COREDO’s implemented projects show that combining Portugal’s investment attractiveness and flexible migration programs allows not only to legalize EU presence but also to scale the business to the entire European market.

Crypto Business in Portugal: Practical Aspects

Illustration for the section 'Crypto Business in Portugal: Practical Aspects' in the article 'Cryptocurrency License in Portugal – conditions and procedure'
Crypto business in Portugal: practical aspects cover the key steps for launching and legalizing activities with digital assets. In this section, we disassemble operational nuances, including opening a bank account, one of the first and most important stages for any cryptocurrency company in the Portuguese market.

Opening an Account for Crypto Companies

Banking services for crypto companies in Portugal: one of the most complicated tasks for new market entrants. Most banks require:

confirmation of substance (office, personnel, actual activity)
the presence of a Banco de Portugal license for working with virtual assets
implementation of internal AML/KYC policies and a transparent ownership structure

The COREDO team supports clients at all stages: from document preparation to personal meetings with banks and building relationships with financial institutions. In several cases, comprehensive preparation and process transparency enabled our clients to successfully open a bank account for the crypto company and ensure sustainable banking services.

Requirements for Crypto Exchange Platforms

Banco de Portugal sets high technological requirements for crypto exchange and custodial service platforms. Among the key ones:

the presence of backup systems and operation log audits
protection of user and investor data
integration of financial monitoring and reporting tools
regular IT infrastructure audits

Solutions developed by COREDO for clients include implementing modular platforms with scaling capability, allowing not only to meet licensing requirements but also to react quickly to market changes and regulator requests.

Risks and Mistakes When Working with Regulators

Key risks of conducting crypto business in Portugal relate to:

non-compliance with AML/KYC and internal control requirements
insufficient transparency of the corporate structure
errors in the preparation of documents for licensing
delays in opening bank accounts

COREDO’s practice shows that the best results are achieved through proactive collaboration with the regulator, regular updates of compliance procedures, and the implementation of internal audits. We recommend conducting a preliminary compliance audit before filing an application and using independent consultations to minimize legal risks of cryptocurrency operations.

Cryptocurrency Regulation in Portugal

Cryptocurrency regulation in Portugal continues to evolve: the country combines flexibility concerning digital assets with the implementation of new European standards and the tightening of some rules for companies and investors. New requirements affect different areas of the crypto industry, including DeFi and stablecoins, impacting business models, Licensing, and user protection.

Regulatory Changes for DeFi and Stablecoins

In 2025, further tightening of regulations for stablecoins and DeFi projects is expected in Portugal. The regulator is planning to introduce new investor protection standards, strengthen technological infrastructure requirements, and integrate with pan-European fintech initiatives. COREDO’s practice shows that corporate structure flexibility and readiness for fast updates to internal policies are key factors of business resilience in a changing regulatory environment.

Pros and Cons of Doing Business in Portugal

Criterion	Portugal	Lithuania	Estonia
License acquisition time	4-6 months	3-4 months	2-3 months
Substance requirements	Office, staff	Office, director	Office, resident director
Minimum capital	From 50,000 EUR	From 125,000 EUR	From 12,000 EUR
Residency possibility	Yes	No	No
Banking services	Difficult, but possible	Limited	Limited

Portugal stands out for its investment attractiveness, the possibility of obtaining residency, and the flexibility of its corporate structure. Nonetheless, the licensing process is more complex and requires deep compliance. In COREDO’s practice, successful international expansion cases were based on a combination of licensing in Portugal and using the free provision of services principle to enter EU markets.

Practical Tips for Entrepreneurs

A cryptocurrency license in Portugal opens strategic opportunities for international business: access to the EU market, flexibility of corporate structure, tax advantages, and migration benefits. On the other hand, success depends on thorough preparation, implementing effective compliance procedures, and competent legal support for the crypto business.

Practical steps for obtaining a crypto license:

Conduct an audit of the business model and corporate structure considering Banco de Portugal’s requirements
Develop a detailed business plan and internal AML/KYC policies
Appoint an experienced compliance officer and implement an internal control system
Prepare complete document packages and ensure real presence (substance)
Organize a preliminary compliance audit and proactively interact with the regulator
Structure the business considering tax optimization and the possibility of international expansion

COREDO’s experience shows: comprehensive business support, process transparency, and a strategic approach to licensing form the basis for long-term success and risk minimization for cryptocurrency companies in Portugal.

Cryptocurrency license in Portugal conditions and procedure

Cryptocurrency License in Portugal

Cryptocurrency Regulation in Portugal

Licensing of Crypto Exchanges and Platforms

Registration of a Cryptocurrency Company in Portugal

Corporate Structure and Real Presence: Requirements

Documents for Obtaining a Crypto License

Timelines, Cost, and Reasons for License Denial

AML/KYC for Crypto Business in Portugal

Internal Policies and the Role of Compliance Officer

Compliance with FATF and 5AMLD Standards

Taxes on Cryptocurrency in Portugal

Taxation and Its Optimization

Residency Through Crypto Business, Advantages for Investors

Crypto Business in Portugal: Practical Aspects

Opening an Account for Crypto Companies

Requirements for Crypto Exchange Platforms

Risks and Mistakes When Working with Regulators

Cryptocurrency Regulation in Portugal

Regulatory Changes for DeFi and Stablecoins

Pros and Cons of Doing Business in Portugal

Practical Tips for Entrepreneurs