Portuguese banks close accounts to crypto exchanges, a U-turn for the crypto-friendly nation?

In what seems like a U-turn for the crypto-friendly nation, some of the top banks in Portugal are closing accounts of cryptocurrency exchanges operating in the country.

Last week, Portugal’s largest listed bank Banco Comercial Portugues closed the account of Lisbon-based crypto trading platform CriptoLoja. Pedro Borges, CEO and founder of the exchange confirmed that another bank Banco Santander also started a similar move.

Moreover, even two other smaller banks have closed CriptoLoja’s accounts without giving any official explanation. Like CryptoLaja, two other crypto exchanges in Portugal have also faced the heat from banks closing their accounts.

Pedro Guimaraes, founder of crypto firm Mind the Coin said they were unable to open new accounts after all accounts were closed earlier this year.

Regulators around the world have stepped up efforts to address investor risk and money laundering issues. Banking giant Banco Commercial said its duty is to inform authorities of “suspicious transactions” when it encounters them. Similarly, a Banco Santander executive said the lender is acting “in accordance with the perception of risk”.

CryptoLaja claims no errors

CryptoLaja CEO Pedro Borges said they have always informed authorities of any suspicious transactions. Speaking to Bloomberg, Borges said:

“We now have to rely on using accounts outside Portugal to operate the exchange. All compliance and reporting procedures have been followed”.

The recent move by the Portuguese banks has affected some of the top crypto exchanges in Portugal, which already have the central bank license. Due to its zero tax on crypto gains, Portugal has recently become a haven for crypto firms and traders to establish a base. However, the recent move could signal a shift and a toughening of the environment in Portugal’s crypto sector.

Pedro Guimaraes, founder of Mind the Coin 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.”

Bhushan is a FinTech enthusiast and has a keen flair for understanding the financial markets. His interest in economics and finance draws his attention to the emerging markets of blockchain technology and cryptocurrency. He is continuously in a learning process and stays motivated by sharing his acquired knowledge. In his spare time, he reads thriller novels and sometimes explores his culinary skills.

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