Portugal’s parliament is set to discuss cryptocurrency payment regulations this week, with the goal of adopting a new legal framework for cryptocurrency payment services, while guaranteeing users’ safety using these services.
According to local news outlet Jornal de Negócios, applicable sanctions and the issuance of digital currencies – presumably initial coin offerings (ICOs) – will also be discussed. The government will reportedly discuss cryptocurrencies so new payment services can emerge in the market, while ensuring users can choose between safe, cost-effective options.
Per the Portuguese government, regulations will allow cryptocurrency-related services to expand within the country, which will benefit consumers by promoting competition, while ensuring safety and transparency in “the issuance of cryptocurrencies.”
The government argued (roughly translated):
“The regulation of certain aspects, not yet regulated, will allow for the expansion of new types of payment services, contributing to a legal framework to accommodate the innovation, to the benefit of consumers, and to even promote competition.”
The regulatory framework is set to apply “new rules to access payment accounts,” so as to prevent unjustified setbacks and ensure payments are safe. It’ll also introduce rules on managing operational risks, while offering service providers and ICO operators “complaint mechanisms.”
Per the somewhat vague information available, when it comes to dispute resolutions “payment service providers are obliged” to work with dispute resolution organizations over potential disputes. The government also plans on introducing “complaint mechanisms for payment service providers and for electronic money issuers, as well as for the respective supervisory authority. “.
As CCN recently covered, the European Parliament saw a majority agree to enforce closer regulation of cryptocurrencies, as an agreement with the European Council that proposed closer cryptocurrency regulations to prevent their abuse in money laundering and terrorism financing found the Parliament’s support
Portugal’s Securities Market Commission (CMVM) has in the past revealed it was supervising banks and brokerages toclose eye on the “bitcoin euphoria” that was sweeping the nation back in December 2017.
Hélder Rosalino, a director at Portugal´s central bank, Banco de Portugal, has back in November claimed he doesn’t see bitcoin as a currency, and that’s important that people know “a cryptocurrency isn’t a currency” to the financial institution. Last year, CCN reported Portuguese authorities were looking to tax cryptocurrency users, despite the lack of regulations.