The legislation related to financial activities in Portugal is aligned with the directives of the European Union. Even if there is no specific set of laws with reference to virtual currency and digital tokens, the Bank of Portugal supervises operations using this type of currency. If you are interested in establishing ICOs in Portugal, we invite you to discuss with our company formation agents in Portugal and find out the steps to follow in this business.
What are ICOs used for?
Initial Coin Offerings or ICOs are optimal alternatives for investments and financial tools that have gained more and more scope in recent years in Portugal. ICOs are, in a specialized definition, a type of financing with cryptocurrencies. In an ICO, cryptocurrencies are sold in the form of tokens to investors in exchange for traditional money or other cryptocurrencies such as Bitcoin or Ethereum, the most popular sims currently in use.
Here’s how this system works:
- In an initial coin offering (ICO) or token sale, entrepreneurs can allocate digital assets like coins and tokens to investors in return for assets.
- Now, the issued ICOs are a new way of funding that can generate substantial amounts of money.
- ICOs are publicized with the creation and release of a white paper that defines the token sale, a solid business project, anti-money laundering policies, blockchain, etc.
- Normally, the number of tokens is limited, but is not a general rule.
We remind you that you can talk to our local agents if you want to know more about ICOs in Portugal and their benefits. We can also help you open a company in Portugal, as we can manage the paperwork and more.
How you can use ICOs in Portugal
ICOs in Portugal can be used for crowdfunding for a newly established company in this country. You can do this by taking into account some important aspects:
- You need a technical document that includes the project description and objectives.
- Applicants must establish the required amount of money, the tokens to be issued, and the date from which they can be used.
- If the necessary funds are acquired, these will be made available to the project, in order to achieve all the initially proposed targets.
- However, in the event that the objectives are not met, the respective cryptocurrency money can be returned.
- There is no jurisdictional limit for raising funds for companies through ICOs in Portugal.
These are some of the aspects related to ICOs in Portugal and how you can raise funds for the company. We invite you to discuss more details about this topic with one of our company formation specialists in Portugal.
The benefits of ICOs in Portugal
ICOs present a series of advantages, and among them, is the stability offered by tokens for those who invest. There are a number of online services with which you can issue tokens and start a business in the virtual currency sector. Because the transfer of tokens is an alternative payment method, it is not subject to VAT in Portugal.
Below we present some statistics about virtual currency in Portugal:
- Around 2.37% of Portugal’s population are cryptocurrency users and holders.
- Many companies established in Portugal have started paying utilities using virtual currency. Such transactions were registered in 2021.
- Most cryptocurrency users in Portugal are under 40 years old.
Do you want to know more about ICOs in Portugal? Contact us now and discover our company formation services in this country.