Dozen Crypto Companies Await Portugal License Despite Bank Account Closures – Bitcoin News

The Central Bank of Portugal is now reviewing 12 requests from businesses that want to offer crypto-related services in the country. The applications await a decision amid recent reports that some commercial banks are closing accounts of already approved operators.

Binance among cryptocurrency platforms seeking authorization in Portugal

Portugal’s monetary authority is currently evaluating requests submitted by 12 entities that intend to offer virtual asset services to Portuguese customers, Dinheiro Vivo revealed. The crypto companies need a license from the Banco de Portugal (BdP) to work in the country, still considered one of Europe’s most crypto-friendly jurisdictions.

Final decisions on the applications are expected by the end of the year. That is unless the regulator asks the companies to provide additional information, in which case the deadline could be moved to 2023, Portugal News English-language portal reported, citing the business news.

Among the applicants to enter the Portuguese crypto market is Binance, the world’s largest cryptocurrency exchange in terms of trading volume. The digital currency trading platform has started recruiting talent in the country, having posted six vacancies on its Portuguese site, although it is still waiting for the green light from the BdP.

Criptoloja, Mind the Coin, Digital Luso, Utrust and Bison Digital Assets are the five crypto brokers already operating in Portugal. The new requests are an indication that the country’s crypto industry is developing and is likely to soon grow to a total of 17 registered exchanges.

At the same time, crypto companies also face certain challenges. A report recently revealed that major Portuguese banks are closing their accounts or refusing to open new ones, hampering normal business operations in the sector.

According to an article published by Jornal de Negócios and cited by Bloomberg, the banks Caixa Geral de Depósitos, BCP, Santander, Abanca and BiG are closing the accounts of four of the five digital asset managers.

In a statement, the Bank of Portugal said it is monitoring the issue, but also pointed out that its competence, when it comes to crypto-assets, does not extend to “areas that go beyond the prevention of money laundering and the financing of terrorism.” Finanstilsynet elaborates:

The decision to open or maintain bank accounts in these cases depends on the risk management policy that each banking institution intends to implement.

The situation could bring bad publicity to Portugal, which had established itself as a crypto-friendly jurisdiction in recent years. EU member states attracted many crypto enthusiasts with their zero percent tax on crypto gains, reasonable cost of living and mild Mediterranean climate, especially during the Covid-19 pandemic.

Do you think Portuguese banks will change their attitude towards crypto businesses if Banco de Portugal approves more operators in the sector? Share your thoughts in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’ quote: “To be a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.