Portugal has, over the years, established itself as a progressive and important jurisdiction in Europe for crypto/digital assets. While stablecoin and crypto in Portugal are not legal tender, the regulatory regime is becoming clearer and business friendly - being developed under EU frameworks. For Portuguese businesses, the opportunity of receiving USDT payments and extending USDT payouts is becoming increasingly viable, it is accommodated by a congregation of crypto platforms, local banks like Caixa Geral or Millennium BCP and regulatory compliance of Portuguese financial frameworks. Through this article, we’ll explore how one can set this up - from collections to payouts to conversions, what to lookout for and best user practices. Let’s hop on to it!

Understanding the regulatory framework in Portugal 

1. Crypto assets in Portugal are determined as Virtual assets under the Portuguese AML/CFT laws and are regulated for AML/KYC, registration and reporting. 

2. The central authority governing AML registration for Virtual Asset Service Providers (VASPs) is Banco de Portugal (Central Bank of Portugal).

3. Stablecoins, a relatively newer addition, fall under the upcoming EU regulation Markets in Crypto Assets (MiCA) regulations which classifies certain stablecoins as ‘e-money tokens’ or ‘asset ‘referenced tokens'.

4. Banks in  Portugal must comply with KYC/AML entities for engaging in any crypto asset associated flows. 

What this means for businesses looking for collections and payouts is that any flow involving USDT or conversion to EUR must go via regulated crypto gateway or VASP, along with fiat on/off ramp procedure followed by bank settlement. 

USDT collections in Portugal

By following this workflow, businesses based in Portugal can accept USDT payments from international clients;

1. Setup a USDT capable wallet or merchant account via VASP or a crypto payment gateway which is compliant with Portuguese and EU regulations.   

2. The next step is to offer USDT on your invoice or checkout. The buyer can then send USDT to the QR/address provided. 

3. When USDT payment is made, wait for blockchain confirmation. The gateway marks the payment as received once the requisites are approved. 
4. Take settlement decisions i.e. either hold USDT or convert USDT to EUR through a local exchange or off ramp service that partners with Portuguese fiat rails. 

5. Deposit the converted EUR into your Portuguese bank account. Now, traditional banking rails can be utilised for domestic payments. 

Make sure to keep transaction hashes, wallet addresses, conversion rates and bank deposit details - the information comes in handy for tax/financial audit. Through this USDT flow, one can accept international clients paying in USDT at a fast pace and lower costs. Conversion and settlement can also be swiftly accommodated via Portuguese banks. 

USDT payouts in Portugal 

If you need to pay vendors or suppliers in Portugal using USDT as the primary medium; 

1. Start with converting EUR or other fiat currency into USDT via crypto gateway ot exchange. 

2. Send USDT to the recipient’s wallet address provided by them. The transfer is initiated on the chain. 

3. Once you’ve moved forward with the payment, the recipient can hold the USDT value or convert it to EUR. They can use Portuguese exchange or partner. 

4. If converted to EUR, funds can then be deposited into the recipient's bank account. They may then transfer further via domestic flows. 

For the recipient and the business, these payments provide lower costs, quicker settlements, USD pegged value and an exposure to global clientele. 

USDT to EUR conversion and bank settlement 

For implementing conversion and bank settlement from USDT to EUR;

1. Ensure that the crypto gateway or exchange supports the USDT to EUR rails followed by settlement into Portuguese bank accounts. 

2. It’s important to make sure that the banks (e.g., Caixa Geral or Millennium BCP) support deposits from the specific crypto partner in question. 

3. Monitor blockchain network fees, bank spreads and associated bank deposit charges.

4. In Portugal, gains from crypto are taxable, it’s crucial to treat USDT related income and conversion appropriately.  

5. Consider settlement time, on chain USDT is fast (within minutes) but conversion and settlement into bank accounts may require some hours. 

Role of Caixa Geral and Millenium BCP

While neither of the banks may currently outrightly advertise USDT services, they are serving as key fiat settlement partners in Portugal. Businesses using USDT flows are most likely to use these banks in conjunction with their crypto gateway.

1. Caixa Geral de Depósitos is a large Portuguese bank serving domestic business accounts and accepting deposits from fiat conversion partners. 

2. Millennium BCP is an important private bank in Portugal and is useful as a settlement bank for converted funds. 

Choosing either of the banks, businesses should ensure;

1. Bank’s regulation and awareness of the conversion source (i.e from USDT via a regulated partner)

2. AML/KYC for crypto gateway is being documented.

3. The specific banking account is permitted to receive funds linked to crypto asset conversions. 

Having ensured all the above tangents, businesses and individuals can move forward with USDT payouts, collections and settlements. 

Conclusion 

For Portuguese businesses exploring global expansion, a full proof combination of USDT collection/payout and local settlement via Portuguese banks like Caixa Geral or Millenium BCP offers an end to end model. Businesses can accept funds globally in stablecoins, convert them to EUR and use it locally by local settlement solutions. They can follow a similar blueprint to extend payouts in USDTand leverage the benefits of these advanced rails. While currently banks don’t provide native USDT accounts, a hybrid flow, as mentioned, is a viable solution. Since crypto regulations in the country are still taking shape, businesses can adopt the path of licensed on/off ramp crypto services and local banking partnerships ensuring KYC/AML compliance and conversion pre-requisites. 

If you wish to start USDT payouts and collections for your business in Portugal, talk to experts at TransFi today and integrate stablecoin rails seamlessly, initiate EUR settlements and benefit from local banking interconnectivity. 

To know more, also read: USDT Payout and Collection in Brazil – via PIX and Itaú Unibanco

Frequently asked questions (FAQs)

1. Can businesses in Portugal receive USDT payments?

Yes, to receive USDT payments businesses can use crypto payment gateway or wallet for USDT followed by conversion to EUR and deposit into a Portuguese bank account. 

2. Is USDT considered to be a legal tender in Portugal?

No, USDT and other crypto assets are identified as virtual assets in the country and not as legal tender. 

3. What is the role of Caixa Geral and Millenium BCP in Portugal?

Caixa Geral de Depósitos is a large Portuguese bank serving domestic business accounts and accepting deposits from fiat conversion partners. While, Millennium BCP is an important private bank in Portugal and is useful as a settlement bank for converted funds. 

4. What does the settlement time look like for USDT transfers?

On chain USDT transfer is fast (within minutes) but conversion and settlement into bank accounts may require some hours. 

5. What are the fees for collecting USDT in Portugal?

The fee structure depends on the blockchain network charges, service provider charges, conversion fees and bank deposit fees. While the blockchain network fee is minimal, it's important to analyze all aspects of the cost breakdown. Reach out to TransFi support  for further assistance.