PORTUGAL Trends and Developments Contributed by: Rodrigo Formigal, João Diogo Barbosa and António Kreiseler de Albuquerque, Abreu Advogados
concept of risk adopted by this measure is quite broad, varying from external circumstances (such as pandemic crisis or geopolitical uncer - tainty) to simply the overvaluation of real estate that leads to the correction of prices. Rather than triggering this reserve when a cyclical systemic risk occurs, the aim is now to trigger it in a neu - tral environment. This is the first time the Bank of Portugal is con - sidering setting this reserve at a value above 0%, with a proposal of 0.75%. The total value of reserves to be created through this measure is expected to be around EUR1 billion, although it is difficult to provide a definite forecast at this stage. This measure is backed by international institutions such as the IMF, the Basel Commit - tee and the Governing Council of the ECB. MiCAR The Markets in Crypto-Assets Regulation (MiC - AR) will become fully enforceable by the end of 2024, representing a legislative shift towards a unified European framework for the crypto sec - tor, even if its implementation does not directly interfere with the DLT/Blockchain technology underlying the crypto-asset markets. New rules encompass asset referenced tokens, e-money tokens and other crypto assets, although they notably excludes non-fungible tokens.
It is expected that a local implementation act will be approved to adapt the Portuguese framework in light of MiCAR requirements. This has not yet been published, although authorities have made public that discussions are ongoing. There is uncertainty regarding the applicable regime for established entities which seek to be author - ised under MiCAR during a potential transition period, and the rules on cross-border service provision within the European Union during the same period. It is expected that the first months of 2025 will bring challenges to established and potential new operators (as well as regulators) in navigating the new framework. Amongst notable changes, there is great expec - tation as to the appointment of a national com - petent authority for MiCAR matters. Prior to the MiCAR, the Bank of Portugal was the only entity responsible for monitoring and regulating cryp - to-assets on AML/CFT matters. In early 2024, the Securities Market Commis - sion (CMVM), launched a public consultation to engage in a dialogue focused on identifying the potential interested parties in assessing the impact of the MiCAR in Portugal. It is likely that future supervision will be at least partially attrib - uted to the CMVM, as has been the case in other member states.
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