Regulation
Portuguese regulation.
Bank of Portugal
The company restructured the project to comply with the Portuguese regulation. Therefore, several functions that the project would initially have had to be removed in order to not have any custody services, trade, transfer, or similar services related to «exchange», and others.
However, in the future goals of the project: the company intends to have such functions. Therefore, on October 15, 2021 and March 4, 2022 was sent the notice no.º 3/2021 related to the registration process with the Bank of Portugal applicable to entities that carry out activities with virtual assets, provided for in article 112.º-A of Law no.º 83/2017, of the 18th of August.
According to the Bank of Portugal, the entity that regulates, supervises and sanctions the conduct of credit institutions, financial companies, payment institutions, electronic money institutions and credit intermediaries in the marketing of retail banking products and services, the Law n.º 58/2020, of 31 August, transposes Directive (EU) 2018/843 of the European Parliament and of the Council, of 30 May 2018, into the domestic legal order, amending Directive (EU) 2015/ 849, on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, and Directive (EU) 2018/1673 of the European Parliament and of the Council, of 23 October 2018, on combating money laundering capital through criminal law, introducing changes in several legal diplomas, including Law n.º 83/2017, of 18 August.
Under the new regime, Law n.º 83/2017, of 18 August, now includes, in the list of entities obliged to comply with its provisions, entities that carry out the activities with virtual assets provided for in paragraph mm) of n. 1 of article 2 of that diploma. In accordance with paragraph j) of paragraph 1 of article 89 of Law n.º 83/2017, of 18 August, Bank of Portugal is responsible for verifying compliance, by such entities, with the duties and obligations provided for in the legal and regulatory diplomas regarding the prevention of money laundering and the financing of terrorism.
Prior to the official launch, the company also sent an email to the Bank of Portugal virtual assets department and the CMVM Fintech department to get their response on the first phases and features of the project. The final decision was made by the Bank of Portugal with the following response before the launch of the project.
In English, it means "In response to your request, we would like to inform you that the project presented, under the terms described, does not currently require prior registration with the Bank of Portugal, under the terms and for the purposes of article 112-A of Law No. 83/ 2017, of August 18, in its current wording."
CMVM and Services not applicable
After the project was explained at the meeting with the CMVM (the entity whose mission is to supervise and regulate the financial instruments markets), and suggestions from the team's legal and financial advisors, the company decided not to have a set of services in the initial phase that was planned to release. The main reason is due to the high costs of setting up another company in force with the Investment Companies Regime approved by Decree-Law No. 109-H/2021 of 10 December.
The company to optimize resources made several decisions to achieve quickly the goals that are visible on the «Goals and Plans». However, as the project evolves, the company intends to set up another company in the future to offer more services.
In addition, the company removed a large number of features and services before the project's launch:
Removed the ability to deposit and receive an annual interest rate of 10% regardless of fluctuations;
Removed the possibility of doing “burn”;
The pioneering method of social capital in the form of cryptocurrency has been removed;
The distribution of dividends directly to the cryptocurrency has been removed.
Lucrar tokens and NFTs are not securities. The transactions on them are not subject to the applicable rules on the protection of investors in securities.
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