Portugal’s Securities Regulator Vows Crypto Rules
Portugal’s securities and financial instruments regulator said it’s time to adopt rules for crypto assets, according to BrytfmOnline.com.
Gabriel Bernardino, chairman of the Securities Market Commission (CMVM), told reporters Monday (Feb. 21) that cryptocurrency is not regulated in Portugal. As a result, he said, not much can be done to supervise the growing currency.
“It’s important” that this changes, Bernardino said. “What we can do is alert investors and those who invest, if they want to invest, do so knowing the risks. We don’t have direct jurisdiction over that.”
In addition to intensifying warnings to potential investors, Bernardino noted that Verena Ross, chair of the European Securities and Markets Authority (ESMA), has said European regulations may give him those powers.
Bernardino spoke to reporters at the regulator’s headquarters in Lisbon to detail CMVM’s priorities for the next two years.
He said his agency is dealing with an unregulated area, one with large fluctuations. He cautioned there may be potential manipulation and fraud. While the chairman said he was unaware of fraud cases in Portugal, he warned it’s possible.
“We are seeing cases of potential fraud mechanisms emerging, it is important that investors in these areas are aware and pay close attention,” he said.
Among the priorities for CMVM is developing information about digital currency developments.
But for now, Banco de Portugal, the country’s central bank, has the authority to license the crypto-asset space for the purpose of preventing money laundering.
“I fully admit that these terms of reference come with the implementation of European regulations,” he said.
The news from Portugal comes as the Russian Ministry of Finance has submitted a draft law to govern digital currencies.
Read more: Russian Finance Ministry Proposes Crypto Rules
Under the proposed regulation, digital currencies are only available as an investment vehicle and cannot be used as payment, according to the release. Still, the guidelines are expected to be a step forward for the booming but unregulated industry.