David Silva Ramalho and Vera Esteves Cardoso comment on new cryptoassets law and increased transparency in the sector

Law No. 69/2025, which enters into force on 1 July, establishes in Portugal a reinforced framework for control and transparency in cryptoasset transactions, imposing rules on identification, reporting and traceability aligned with the European MiCA Regulation — in a commentary to Advocatus, David Silva Ramalho and Vera Esteves Cardoso explain that the aim is to prevent money laundering and increase confidence in the market.

The Morais Leitão lawyers highlight that the legislation introduces a more stringent regime for communicating information to the competent authorities, clarifying obligations and procedures.

“Defines the moments at which communications must be made, identifies the entities required to report and establishes the reporting methods. It also incorporates into the Portuguese legal framework mechanisms for risk management, compliance assessment and international cooperation, strengthening the capacity to prevent and detect operations suspected of money laundering or terrorist financing.”

This framework brings the cryptoasset sector closer to the requirements already applicable to the traditional financial system, contributing to greater regulatory robustness.

Transparency and traceability increase confidence in the cryptoassets market

One of the main impacts of the new law is the strengthening of transparency requirements in transactions, reducing the anonymity historically associated with cryptoassets.

“This law will reinforce transparency and traceability requirements in the cross-border flow of funds and cryptoassets. The alignment of cryptoassets with funds means that cryptoasset service providers are subject to obligations similar to those of traditional financial institutions, raising compliance standards in the sector.”

According to the lawyers, this increased traceability is expected to enhance institutional and investor confidence, a critical factor for market maturity.

European supervision challenges and compliance costs

Despite the progress, David Silva Ramalho and Vera Esteves Cardoso identify relevant challenges in the practical application of the legislation, particularly regarding coordination between Member States.

“Cooperation between Member States for the supervision of entities operating under the passporting regime may present significant practical challenges. Supervising cryptoasset service providers operating across several Member States requires effective mechanisms for information exchange and coordination between competent authorities.”

These challenges are compounded by the operational costs associated with implementing the new requirements.

“High compliance costs may create barriers to market entry, reduce competition and discourage innovation in the cryptoasset sector, favouring concentration among large operators with greater financial and technical capacity.”

Impact on investors: greater security, less anonymity

From an investor perspective, the new legislation entails greater scrutiny and additional identification requirements.

“Service providers must verify the accuracy of the information relating to the originator before carrying out the transfer, based on documents, data or information obtained from a reliable and independent source. This means that investors will need to provide identification documents and personal data for verification.”

While this requirement reduces anonymity, it contributes to a safer and more transparent environment.

Alignment with the MiCA Regulation and European harmonisation

The lawyers also emphasise the European context of the legislation, which strengthens regulatory integration and legal predictability.

“This law is part of the European regulatory package that includes the MiCA Regulation, reflecting the integration of financial crime prevention rules with the cryptoassets market and bringing Portugal closer to international best practices. By harmonising definitions, procedures and responsibilities, the law contributes to a more predictable legal environment.”

Regulatory gaps and future challenges in the cryptoassets sector

Despite the strengthened regulatory framework, some areas may require future adjustments, particularly in light of the sector’s technological evolution.

“The Transfer of Funds Regulation II and the MiCA Regulation may not adequately cover emerging cryptoasset products and services, such as new types of tokens, decentralised finance (DeFi) protocols, applications based on smart contracts or innovative technologies still under development.”

Additionally, the lawyers warn of the risk of regulatory fragmentation across the European Union, which may create competitive imbalances between operators.

Read the full article in Advocatus.