The recent influx of foreigners in the cryptocurrency sector signify a big potential for the Portuguese economy. Objective of this group is to actively shape the blockchain ecosystem and have an impact on political decision making.

Current - Regulation and General Situation

Banco de Portugal: effectively banned all crypto activities for businesses since September 1, 2020 (still proposal or in effect?!).
AT: for private individuals, digital asset gains are currently tax free if not related to professional activity, since they do not qualify under any of the currently existing tax categories. However, this is likely to change 2022. The major issue is how to do classify digital assets beyond Bitcoin and Ethereum.
CMVM: seems less conservative related to digital assets

Overall regulation: politicians are very ignorant and have no understanding of blockchain technology. Moreover, current bureaucracy for both businesses (could SIFID be a solution?) and private individuals is unacceptable.

General situation: As a small and conservative country, Portugal is all about connections (“somebody knows somebody”), and not about lobbying. External pressure from foreigners living in Portugal, or willing to relocate to Portugal, can move the needle compared to action from local people.

Currently, most regulatory initiatives rely on decisions by the EU commission, and Portugal is only 3rd in line to decide (behind: EU/France/Germany, then Spain/Italy, then Portugal).

Upside is, it is easy to shape the minds of the currently older generation via concrete action items.

Target Situation

I. Less bureaucracy for both businesses and private individual

II. Clearer guidelines

III. Preserve the no to low tax situation related to digital assets