"Crypto Paradise" Portugal Policy U-turn? Banks Successively Closing Cryptocurrency Exchange Accounts

Portugal, once known as the "cryptocurrency paradise," seems to be changing its stance on crypto policies! According to a report by BNN Bloomberg, several major banks in Portugal have started closing accounts of cryptocurrency exchanges due to concerns over risk management, indicating a shift in Portugal's supportive stance towards cryptocurrencies.

Portugal, known as the "cryptocurrency paradise," seems to be changing its stance on crypto policies! According to a report by Bnn Bloomberg, several major banks in Portugal have begun closing accounts of cryptocurrency exchanges due to concerns over risk management, indicating a shift in Portugal's support for cryptocurrencies.

The largest listed bank in Portugal, Banco Comercial Portugues, and the Spanish international bank, Banco Santander, have closed all accounts of the digital currency exchange CriptoLoja in Lisbon. Pedro Borges, the co-founder and CEO of the exchange, mentioned that this happened after two smaller banks in Portugal had already closed the company's accounts, although the banks did not provide any official explanations.

According to Bloomberg, accounts of at least four cryptocurrency exchanges in the country have been closed by several banks including Banco Comercial Portugues, Banco Santander, Caixa Geral de Depósitos, Bjarke Ingels Group (BiG), and Abanca.

In an email statement, Banco Comercial Portugues stated that when exchanges detect suspicious transactions, they must notify the regulatory authorities, which could lead to terminating bank relationships with certain entities.

CriptoLoja was the first licensed exchange last year, and Pedro Borges mentioned that they now have to rely on accounts outside Portugal to operate the exchange. He emphasized that all transactions at CriptoLoja are compliant and report any suspicious activities promptly.

Founder of the cryptocurrency company Mind the Coin, Pedro Guimaraes, stated that his company has been unable to open accounts for several months after all their accounts in Portugal were closed.

"Although there was no official explanation, some banks just told us they don't want to work with crypto companies. It's nearly impossible to conduct crypto business in Portugal now," said Pedro Guimaraes.

A well-known "Bitcoin family" from the Netherlands sold all their assets to buy Bitcoin in 2017 and embarked on a global journey, eventually settling in Portugal and starting a series of Bitcoin lifestyle projects.

Portugal's crypto-friendly environment stems from the country treating cryptocurrencies as a "means of payment" rather than "property." In other words, buying and selling cryptocurrencies in Portugal is akin to trading other fiat currencies and does not incur any value-added tax, unless it is a cryptocurrency company (exchange) subject to taxation for profit-making activities. Portugal's crypto-friendly environment has attracted Bitcoin entrepreneurs from across Europe.

Furthermore, even if you have no assets and do not stay in Portugal for a certain number of days, you can still become a formal citizen of Portugal. This has particularly attracted a large number of people fleeing Ukraine for refuge after the Russo-Ukrainian War.

If the policy indeed shifts now, the flourishing development of cryptocurrencies may also change.

This article is reproduced from Vision News Network