There is no progress in the cryptocurrency space! Although Portugal has attracted many investors in recent months, this trend is coming to an end.Banks take new resolutions Informal” and cryptocurrency exchanges have had a tough time.
Portugal: Banks close cryptocurrency exchange accounts
After the downtrend, the exchange faces a new crisis in Portugal. The situation could take another turn if the country has welcomed many cryptocurrency fans lately. In fact, the accounts of cryptocurrency platforms, including the exchanges in this case, have been closed by major Portuguese banks.
The country’s largest listed banks, Banco de Portugal and Banco Santander, have closed all accounts of a cryptocurrency exchange in Lisbon, according to Bloomberg. According to Criptoloja CEO Pedro Borges, this happened when two small banks decided to close accounts on the platform.
According to the same report, other cryptocurrency exchanges are also victims of this development. In fact, accounts at two cryptocurrency brokers have been closed this year. As for Mind the Coin, it hasn’t been able to open itself for months.
So far, no official announcement has been made. However, other banks are also starting to join the movement. Lisbon-based BiG and state-owned bank Caixa Geral de Depositos are now rejecting and closing cryptocurrency exchange accounts, according to Jornal de Negocios.
Decisions that could damage the country’s image
Crypto companies are widely developed in Portugal. The fact that there is zero tax on cryptocurrency winnings has attracted many followers of the digital asset. Therefore, tourism has also benefited. In fact, Portugal has become a negotiator’s paradise.
However, recent events have cast a shadow over the industry. The leader of the Portuguese crypto platform was forced to open a bank account abroad to operate its business. Banks often cite certain reasons for not working with crypto businesses. Between money laundering and know-your-customer rules, banking institutions need to report transactions.
However, although Criptojola was the first crypto company to be licensed by the central bank, it did not escape lynching. Furthermore, Pedro Borges claims that his company has been working hand in hand with the authorities and following all compliance procedures.
Currently, three of the five trading platforms authorized by the Central Bank of Portugal have closed their bank accounts this year. However, this trend seems to be focused only on crypto exchanges. Still, the situation has sent shivers down the spine of investors based within the country.
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The world is changing, and adaptation is the best weapon for surviving in this undulating universe. As Base’s Crypto Community Manager, I am interested in everything directly or indirectly related to blockchain and its derivatives. To share my experience and let me know about a field that fascinates me, there is nothing better than writing informative and light-hearted articles at the same time.