Exploring Portugal's Web3 Ecosystem: A Gateway to Digital Transformation

‍

In recent years, Portugal has emerged as a hotbed for innovation, particularly in the realm of Web3 technologies. As the world continues to embrace the decentralized web and blockchain-powered solutions, Portugal has positioned itself as an attractive destination for individuals and businesses seeking to tap into the vast opportunities offered by the Web3 ecosystem. It's capital, Lisbon, was crowned the leading business environment for startups in Portugal in 2023. In this article, we will delve into Portugal's flourishing Web3 scene and explore why it's an ideal country to consider for your ventures.

‍

A Favorable Regulatory Environment

The EU has been proactive in establishing a supportive regulatory framework for cryptocurrencies, blockchain technology, and related innovations. In 2023, the Markets in Crypto-assets Regulation (“MiCA”) will enter into force in the European Union, being applicable to all Member States, including Portugal, providing a comprehensive legal framework for the Web3 ecosystem. This move aims to provide clarity and legal certainty, creating a stable environment for Web3 startups and investors to thrive. Nuno Lima da Luz, a lawyer at Cuatrecasas, added the following insight:

“The Markets in Crypto-Assets Act (MiCA) is important for the Web3 ecosystem in Europe because it establishes a unique regulatory environment for crypto businesses in the European Union (EU), offering greater clarity on the overarching rules for industry players. The main aim of MiCA is to deliver transparency, uniformity, and security in the realm of digital assets.
‍

The key objectives of MiCA are to replace individual regulations found within several EU nations with one unifying and comprehensive framework, set clearer rules for crypto-asset service providers and token issuers, and provide more certainty in the regulation of crypto assets where it is not covered by the existing financial regulations.
‍

MiCA applies to businesses or crypto-asset service providers (CASPs) that include custodial wallets, exchanges for crypto transactions, crypto-trading platforms, crypto-asset advising firms, and crypto-portfolio managers. In terms of asset applicability, it covers three types of assets: asset-referenced tokens (including stablecoins backed by commodities or one or several currencies), e-money tokens (stablecoins backed by a single fiat currency), and other tokens, including utility tokens. However, it does not apply to decentralized applications (dApps), including DeFi applications, as they operate without intermediaries, or Non-Fungible Tokens whenever they are truly non-fungible.
‍

The key points of the MiCA Regulation that are important for the Web3 ecosystem are:

‍
- Projects operating in the EU will need fewer licenses: With MiCA, individual national Web3 permit regimes will no longer exist. Instead, MiCA introduces one authorization system to be used by all EU countries. This will allow regional Web3 businesses to operate in larger markets on fewer licenses.

- More rules for token issuance processes: Web3 founders planning to issue tokens will be required to publish a whitepaper and have a legal entity that issues tokens and operates them in accordance with the whitepaper.

- Competitive edge: Compared with other jurisdictions, such as the US, the EU will now have more legal certainty as to allow more institutional players to come into play in the Web3 ecosystem.”

‍

Cuatrecasas, as a 360º full services law firm, is a key partner of CV Labs and its accelerated projects, providing much-needed guidance through the regulatory landscape in the European Union and Portugal, as well as full services to help projects through all stages of their lifecycle.

‍

Strong Government Support

The Portuguese government has shown a keen interest in fostering innovation and digital transformation. Recognizing the potential of Web3 technologies, the government has implemented various initiatives to attract blockchain-based businesses and promote research and development in the field. These efforts include financial incentives, tax regulation, and support programs for startups and entrepreneurs. A good example of this is the Unicorn Factory and Startup Lisboa. Startup Lisboa is a nonprofit organization focused on incubating Startups based in Lisbon while Unicorn Factory scales them up to the next level.

‍

Abundant Tech Talent and Infrastructure

Portugal boasts a vibrant tech ecosystem with a skilled and diverse workforce. Over the past few years, we have seen an exponential increase in developers from around the world coming to Portugal. Renowned universities (Nova, ISCTE, Catolica, etc.) and research institutions produce a steady stream of talented graduates, providing a deep pool of skilled professionals in areas like blockchain development, smart contracts, and decentralized applications. Furthermore, Portugal offers excellent infrastructure, including high-speed internet connectivity and state-of-the-art tech hubs like Kübe where they offer office space, co-working, and an event space, making it an ideal base for Web3 projects.

‍

‍

Growing Startup Scene

Portugal has witnessed a surge in startup activity in recent years, with a particular focus on emerging technologies. Lisbon, the capital city, has become a thriving hub for startups, attracting entrepreneurs, investors, and talent from around the world, attracting creative and entrepreneurial expats with a lively calendar of Web3 events, prized “digital nomad” visa and crypto-friendly tax laws. Just recently, Lisbon was ranked as a top global hub, taking the No. 15 spot on CoinDesk’s Crypto Hubs 2023. The collaborative and entrepreneurial spirit in Portugal fosters innovation and facilitates networking opportunities, making it an ideal environment for Web3 startups to connect, collaborate, and grow.

‍

Blockchain-Friendly Communities and Events

Portugal hosts a variety of meetups, conferences, and events focused on blockchain, cryptocurrencies, and Web3 technologies. These gatherings bring together industry leaders, entrepreneurs, and enthusiasts, creating a vibrant community that fosters collaboration and knowledge sharing. Engaging with these communities can open doors to valuable partnerships, investments, and mentorship opportunities. CV Labs Lisbon hosted several highly successful events at the beginning of the year and promises to continue the trend! In Q4, our auditorium will be ready with seats for 250+ attendees, so keep an eye out on our social media channels and telegram group for more updates.

‍

‍

Strategic Geographical Location

Situated in the southwestern corner of Europe, Portugal enjoys a strategic geographical location with excellent connectivity to Europe, Africa, and the Americas. This geographic advantage positions Portugal as a gateway for Web3 projects seeking to expand globally. Additionally, the country's membership of the European Union provides access to a large market and harmonized regulations across the EU.

In conclusion, Portugal has become a thriving destination for Web3 ventures, offering a combination of amazing Web3 hubs, strong community support, abundant tech talent, and a growing startup scene. The nation's commitment to embracing blockchain technology and creating a supportive environment for innovation has attracted entrepreneurs, investors, and developers from around the world.

So, whether you're a startup founder, an investor, or a developer exploring new frontiers in Web3 technologies, Portugal stands as a promising choice for your endeavors. Embrace the opportunities that Portugal's Web3 ecosystem has to offer and join the wave of digital transformation in one of Europe's most exciting destinations.

‍

‍

You can count on us!

CV Labs Lisbon & Kübe welcomes you to Portugal. Together we offer you the best Hub in Lisbon, 1000 sqm of coworking/private office space with an auditorium (250+ capacity) where you will be able to host all kinds of events!

Combined with our ecosystem partner Cuatrecasas we are capable of supporting you from A-Z here in Portugal. You will be able to seamlessly move/create your company.

Join us today!

Hugo Bettencourt
hugo.bettencourt@cvlabs.com

‍

About CV Labs

CV Labs is the blockchain-dedicated ecosystem business and co-working space of CV VC, a blockchain Venture Capital firm in Switzerland. With more than 150 startups registered across its premises in Zug, Vaduz, Lisbon, Berlin, and Cape Town, CV Labs’ co-working hubs offer a variety of services, such as an Accelerator, innovation services for corporate clients, blockchain and entrepreneurship education modules, events, and advisory services that help blockchain companies set up shop in one of CV Labs Hubs and beyond.

We work with key players in the industry and beyond, such as Cardano, NEAR, Binance, Kraken, GSR, Certik, Google Cloud, AWS, PwC, and many more.

Written by

CV Labs