Portuguese Bank Restricts Crypto Transfers Citing Regulatory Pressure

by

In simple terms, one of Portugal’s major banks, Banco de Investimentos Globais (BiG), has stopped transactions related to fiat currency going towards cryptocurrency platforms. This move highlights Portugal potentially taking a different approach towards activities involving cryptocurrencies.

Currently, it appears that Big is acting independently on this matter, as no other banks have yet to make comparable declarations.

Is Portugal’s Crypto Stance Changing?

Following the implementation of MiCA a week prior, the crypto community anticipated that regulations within the EU would be more transparent – whether positively or negatively impactful. However, BiG’s recent decision continues to stir controversy as clarity regarding regulations remains crucial.

Big justified their choice by pointing out that it adhered to instructions given by the European Central Bank, the European Banking Authority, and the Bank of Portugal.

Moreover, the bank emphasized their dedication to adhering to national laws against money laundering and terrorism funding as a component of this change in approach.

As a forward-thinking cryptocurrency investor, I wholeheartedly agree with José Maria Macedo’s perspective: Cryptocurrencies are the unavoidable future, traditional banks are becoming obsolete, and instances of power abuse will continue to drive more individuals to secure their wealth on blockchain platforms.

Although Bank of Ideas (BiG) has adopted a tight policy on this matter, other significant Portuguese banks like Caixa Geral de Depósitos are still enabling fiat transactions for cryptocurrency platforms. This implies that the way BiG is handling this issue isn’t being followed by all banking institutions in Portugal at present.

Initially viewed as a crypto tax haven, Portugal has been moving towards stricter regulatory supervision. In the year 2023, the government implemented a 28% capital gains tax on short-term cryptocurrency investments. This action marked a change from its previous hands-off policy.

In contrast to other Portuguese banks, BiG seems to be the only one maintaining a friendly stance towards cryptocurrencies. This announcement comes shortly after Portugal introduced new crypto taxes with a rate of 28% on short-term profits, causing quite a stir. It appears that as a result, more individuals may start exploring Decentralized Finance (DeFi) options now, given BiG’s encouragement in this direction.

BiG’s choice aligns with a wider regulatory pattern throughout Europe, as the Markets in Crypto-Assets Regulation (MiCA) strives to establish a consistent set of rules for crypto asset operations within the European Union.

However, attitudes toward crypto vary widely across EU member states.

Other EU Countries Tell a Different Story

In the Czech Republic, the head of their central bank has suggested incorporating Bitcoin into the nation’s international currency reserves. He explained this move as a means for diversification rather than a substantial investment.

In France, the major banking entity BPCE intends to debut Bitcoin and various cryptocurrency services by 2025, using its affiliate Hexarq. These offerings will adhere to the guidelines set forth by the MiCA regulations.

Currently, Deutsche Bank based in Germany is developing a Layer-2 solution to address compliance challenges associated with public blockchains.

Simultaneously, Switzerland stands out with its unique strategy. By the year 2024, the Swiss National Bank indicated a strong leaning towards tokenized assets rather than Central Bank Digital Currencies (CBDCs).

In the year 2023, the Swiss banking industry took a more welcoming stance towards cryptocurrencies, as St. Galler Kantonalbank introduced Bitcoin and Ethereum trading services to its clientele.

BiG’s limitations are noticeably different from the wider European tendencies. The newly established MiCA framework ensures that only cryptocurrency platforms adhering to regulations can function within the European Union.

As a researcher, I find it noteworthy that BiG’s choice to restrict crypto transactions in Portugal appears to be an exception, given the growing trend among European financial institutions to delve into the vast opportunities presented by digital assets.

Read More

2025-01-09 03:14