PORTUGAL Trends and Developments Contributed by: Diogo Pereira Duarte, Ricardo Henriques, Isabel Pinheiro Torres and João Diogo Barbosa, Abreu Advogados
need to bolster their technological defences and cultivate a culture of cybersecurity and resilience throughout their organisations. This shift will demand investment in both advanced cyberse - curity tools and ongoing staff training to ensure proactive threat identification and mitigation. With the growing complexity of cyber risks, the role of fintech companies in the cybersecurity space is evolving. While established financial institutions have historically taken the lead in developing and implementing cybersecurity measures, fintech SaaS (Software-as-a-Service) companies play an increasingly critical role in disrupting traditional cybersecurity models. Many fintech startups and innovators lever - age advanced technologies like artificial intelli - gence, machine learning, and blockchain to offer cutting-edge security solutions that can better anticipate and respond to threats. This disrup - tion is particularly important as financial services increasingly shift to cloud-based infrastructures and interconnected systems, which open up new avenues for cyber threats. Fintech companies are leading the way in adopting and developing these technologies, making them key partners for established financial institutions looking to strengthen their cybersecurity defences. Traditional financial institutions are expected to continue investing in cybersecurity through in-house development or by contracting third- party providers to develop specialised solutions. This will likely involve collaborations with fintech firms that offer advanced tools for threat detec - tion, fraud prevention, and data protection. As a result, fintech companies, especially those focused on cybersecurity, are poised to lead the way in adopting innovative technical solutions. The rise of fintech companies in the cybersecu - rity space is particularly valuable, as they often offer more agile, cost-effective, and adaptable
solutions compared to larger, more bureaucrat - ic financial institutions. As these collaborations become more prevalent, fintech firms will be instrumental in shaping the future of cybersecu - rity within the financial sector, helping to create more secure and resilient infrastructures across Europe. At the same time, the growing need for cyberse - curity protections in the financial sector is push - ing fintech companies to continuously evolve their offerings, integrate new technologies, and stay ahead of emerging threats. With the regu - latory pressures introduced by DORA, fintech companies are not only being held account - able for the robustness of their own cyberse - curity frameworks but also for ensuring that any third-party providers they work with adhere to similar standards. This creates a more collabo - rative approach to cybersecurity, where fintech companies are encouraged to share best prac - tices, develop innovative solutions, and improve overall industry standards. As a result, fintech companies are expected to become adopters and drivers of the next generation of cyberse - curity technologies, helping shape the future of digital finance in a more secure and resilient environment. Crypto-assets and the Digital Euro The approval of MiCA in 2023 set the stage for greater regulatory clarity in the crypto space, and in 2024, crypto-asset service providers (CASPs) established European platforms, seek - ing national licenses that met the new EU-wide standards and allowed passporting of their activity. The lack of a Portuguese MICA imple - mentation framework has delayed the estab- lishment of national CASPs. However, a more controlled, transparent ecosystem is expected to emerge as crypto-assets become increasingly integrated into mainstream finance. The devel -
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