Bitcoin is not legal in Portugal, but some brokers in the country “sell” the digital coin

  • ECO News
  • 14 December 2017

A legal void on digital coins prevents CMVM from regulating Bitcoin. But the markets' police will impose advertising restrictions to Portuguese brokers who already "sell" Bitcoin.

Portuguese brokers already offer products for those who want to invest in this popular digital coin. Max Pixel

The Portuguese Securities Market Commission (CMVM) is not fond of the commercialization of complex financial products linked to Bitcoin and it will restrict the advertising of these products to private investors, ECO knows, in addition to closely monitoring these financial intermediates who allow anyone to be exposed to the euphoria around Bitcoin.

Any investor can buy and sell Bitcoin on online platforms such as Bitstamp or Coinbase, markets which are not regulated by official authorities such as central banks. In fact, it is precisely this deregulation that has attracted several Bitcoin enthusiasts from all over the world, inflating its price in successive records above 17 thousand dollars. But this situation also means investors are not protected from the risks of trading these cryptocurrencies.

Because it is not considered a financial asset — there is not yet a legal framework for these digital coins –, Bitcoin stands outside the spectrum of any regulator in the world, including the Portuguese CMVM.

Therefore, the Portuguese market regulator headed by Gabriela Figueiredo Dias is particularly attentive to the phenomenon and although it cannot directly intervene, ECO knows the regulator will impose commercial and advertising restrictions concerning the trade of Bitcoin among small investors, those who have less knowledge about financial markets.