The obligation to register entities that carry out activities with virtual assets

Bank of Portugal Notice 3/2021 (“Notice”) was published on 23 April 2021 and it regulates the registration process for entities carrying out activities with virtual assets. This is provided for in article 112-A of Law 83/2017 of 18 August1 (Law to Combat Money Laundering and Terrorist Financing or LCMLTF), which was introduced in the LCMLFT in the context of the incorporation of Directive (EU) 2018/843 of the European Parliament and of the Council of 30 May 2018 (“5AMLD”) into Portuguese law.

The Notice sets out the terms for the submission to the Bank of Portugal of (i) applications to register entities wishing to carry on activities with virtual assets and (ii) applications to amend the information subject to registration by the same entities.

The duty to register with the Bank of Portugal

Following the implementation of the 5AMLD, engaging in activities with virtual assets on a professional basis became subject to prior registration with the Bank of Portugal.

Virtual assets are considered to be any digital representations of value that, despite not being legal tender, are accepted as a means of exchange or investment and can be transferred, stored and traded electronically. Along the same lines, any of the following economic activities, carried out in the name or on behalf of a client, are considered to be activities with virtual assets: (i) exchange services between virtual currencies and fiat currencies; (ii) exchange services between one or more virtual assets; (iii) virtual asset transfer services; (iv) virtual asset safeguarding and/or administration services.