Portugal’s banks close accounts to crypto exchanges. Why?
Since Asia took over the crypto industry, European countries have expressed huge interest in the market. While some have drafted regulations, others are trying to become cryptocurrency hotspots. Portugal has been touted as the crypto paradise of southern Europe, and its tax-free approach to the industry has earned the country similar labels. On the contrary, digital asset exchanges had problems operating in the country.
A recent report highlighted how the bank accounts of CriptoLoja, a Lisbon-based platform, were closed. The crypto exchange lost its bank accounts with Banco Comercial Portugues and Banco Santander. It should be noted that these were the largest banks in the region. In addition, a few lesser-known banks also closed CriptoLoja’s accounts.
The crypto-verse has faced several limitations regarding its association with centralized entities. However, the above banks pulled the plug on these crypto exchanges without an official explanation.
The exchanges were reportedly urged to submit details of suspicious transactions. A failure to do so could tamper with banking conditions, Banco Comercial suggested.
Further confirming that CriptoLoja had always reported suspicious operations, the latest move by the banks has left Pedro Borges, CEO of the exchange, in a spot. He added,
“All compliance and reporting procedures have been followed. We now have to rely on using accounts outside Portugal to operate the exchange.”
It should be noted that CriptoLoja was one of the first licensed exchanges in the region.
So why are Portuguese banks on an account closure?
In addition to CriptoLoja, crypto platforms such as Mind the Coin and Rival Luso Digital Assets faced the abrupt termination of their bank accounts. Portuguese state-owned Caixa Geral depositos and Lisbon-based BiG had also closed crypto exchange accounts.
While suspicious transactions may be a factor, the community speculates that the recent industry downturn may have influenced banks’ decisions. The bear market brought nothing but bloody portfolios along with failed projects.
Another assumption that emerged was Bison Bank’s intention to take over the Portuguese crypto market. In April this year, Banco de Portugal, Portugal’s central bank, gave Bison Bank a green signal to provide crypto services. This further allowed the bank to function as a digital asset exchange in the region.
The abrupt termination of crypto bank accounts to exchanges may be linked to Bison Bank’s potential monopoly on the Portuguese crypto market.
Furthermore, the co-founder of Mind the Coin, Pedro Guimaraes, said
“Although there is no official explanation, some banks just tell us that they do not want to work with crypto companies. It is almost impossible to start a crypto business in Portugal right now.”
These cases certainly raise the question: “Is Portugal a true crypto paradise?”
