Crypto accounts are being disabled at Portugal’s major banks – here’s why
“Crypto-friendly” banks in Portugal have started deactivating accounts for digital currency exchanges, which could be a sign of things to come.
Banking giant Banco Comercial Portugues, the largest listed bank in Portugal, closed all accounts of Lisbon-based crypto trading platform CriptoLoja last week. CEO and founder of the exchange, Pedro Borges, acknowledged that another bank, Banco Santander, was doing the same.
Borges added that the lenders did not issue an official statement.
Banco Comercial Portugues. Image: Wikimedia Commnons
Digital currency exchanges are taking a hit
Bank account closures have hit at least two other digital currency exchanges in Portugal this year.
Pedro Guimaraes, the founder of cryptocurrency startup Mind the Coin, says the company was unable to register an account for months after all accounts in Portugal were canceled earlier this year.
According to Chief Product Officer Ricardo Filipe, rival Luso Digital Assets also closed some of its accounts in Portugal this year.
Based on a poll conducted by the statistics website Triple A, over 240,000 people, or 2.37 percent of Portugal’s total population, currently own digital currency
Portugal is fast emerging as the top destination for virtual asset enthusiasts, especially long-term investors and retail traders.
The absence of tax on crypto income in the southern European nation is one of the main reasons for the community’s interest in Portugal.
Portugal draws interest from crypto-lawyers
Portugal emerged as a destination for crypto enthusiasts during the COVID-19 pandemic due to its tax-free status on these types of assets, affordable housing and year-round good weather.
Banco Commercial stated that it is required to report all “suspicious transactions” to the appropriate authorities. Likewise, an executive at Banco Santander indicated that the bank is following its “perception of risk” guidelines.
Some of the biggest exchanges in Portugal, which already have a license from the central bank, have been affected by the recent move by Portuguese banks.
According to Borges, they have always reported suspicious transactions to the authorities. In an interview with Bloomberg, he stated:
“We now have to rely on accounts outside Portugal to operate the exchange. All compliance and reporting protocols are adhered to.”
On Thursday, Jornal de Negocios reported that state-owned Caixa Geral de Depositos and Lisbon-based BiG are among lenders in the country canceling accounts.
The new decision by the Portuguese government could mean a change and hardening of the crypto industry ecosystem.
Crypto total market cap at $1.06 trillion on the daily chart | Source: TradingView.com Featured image from Gulf Crypto, chart from TradingView.com
