Fintech 2025

PORTUGAL Law and Practice Contributed by: João G Gil Figueira, Rodrigue Devillet Lima and Catarina Andrade Miranda, GFDL Advogados

1. Fintech Market 1.1 Evolution of the Fintech Market The year 2024 marked a significant milestone for the fintech industry with the full implementation of Regulation (EU) 2023/1114 of the European Parliament and the Council of 31 May 2023, commonly known as the “MiCA Regulation” . This regulation, which fully came into force in December 2024, established a comprehensive legal framework for markets in crypto-assets. It now governs issuers of crypto-assets that were previously unregulated under other EU financial services laws, as well as crypto-asset service providers dealing with e-money tokens and asset-referenced tokens. The primary aim of MiCA is to provide legal clar - ity for crypto-asset issuers and providers, foster - ing innovation while ensuring financial stability and protecting investors from associated risks. Alongside MiCA, another key regulatory devel - opment is the Digital Operational Resilience Act ( “DORA” ), which came into force on 17 January 2025. DORA (Regulation EU 2022/2554) man - dates that financial institutions, including credit institutions, payment services, and electronic money providers, must build resilient internal security networks and systems capable of with - standing and recovering from disruptions, par - ticularly those related to information and com - munication technologies (ICT). Until 2024, the Bank of Portugal was responsi - ble for overseeing anti-money laundering (AML) and counter-terrorism financing (CTF) activities, as well as supervising entities engaged in virtual asset activities, as outlined in Law No 83/2017. However, one of the main changes expected in 2025 is the creation of national legislation to implement MiCA, as well as the designation of a

competent authority for receiving and assessing applications for authorisation to provide crypto- asset services. For entities already registered with the Bank of Portugal to conduct activities with virtual assets, MiCA’s new requirements will present challeng - es. These entities may continue their operations during the transitional period until 1 July 2026, although Portugal has yet to issue the domes - tic regulations required to fully regulate MiCA’s implementation. It is important to note that each EU Member State may opt for a shorter transi - tional period. Regardless of this, companies pre - viously registered with the Bank of Portugal must seek MiCA authorisation to ensure full compli - ance within the defined timelines. MiCA’s rigorous requirements are expected to strengthen the crypto market by filtering out pro - viders lacking solid foundations, thereby creat - ing a more stable and transparent ecosystem that appeals to established financial institutions. In terms of technological integration, the MiCA regulation’s transparency and consumer protec - tion provisions are likely to encourage fintech companies in Portugal to adopt advanced tech - nologies, including artificial intelligence (AI). AI will play a crucial role in enhancing compliance, risk management, and customer service, facili - tating the digital transformation of the sector. AI is already pivotal in the global fintech landscape and is set to continue driving transformative changes in Portugal, particularly in banking dig - italisation, fraud prevention, risk management, and Insurtech applications.

681 CHAMBERS.COM