Nothing is going well in the crypto sector! While Portugal has attracted many investors in recent months, the trend is about to end. Banks take new resolutions informal” and cryptocurrency exchanges are having a rough time.
Portugal: Banks close crypto exchange accounts
After the downtrend, exchanges are facing a new crisis in Portugal. If the country has recently welcomed many crypto fans, the situation could take another turn. Indeed, cryptocurrency platforms, including exchanges in this case, have their accounts closed by the main Portuguese banks.
According to a Bloomberg report, Banco Comercial Portugues, the country’s largest publicly traded bank, and Banco Santander have closed all accounts at a Lisbon-based crypto exchange. According to Pedro Borges, the CEO of Criptoloja this situation occurs at a time when two small banks have decided to close the accounts of the platform.
According to the same report, other cryptocurrency exchanges are also victims of this development. Indeed, the accounts of two crypto brokers have been closed this year. As for Mind the Coin, it hasn’t been able to open its own for months.
Currently, no official announcement has been made yet. However, other banks are starting to join the movement. According to Jornal de Negocios, the BiG Lisbon-based and public bank Caixa Geral de Depositos are now rejecting and closing crypto exchange accounts.
A decision that could harm the image of the country
Crypto companies have grown extensively in Portugal. The fact that there is zero tax on crypto winnings has attracted many followers of digital assets. As a result, tourism has also benefited somewhat. Indeed, Portugal has become a paradise for negotiators.
However, recent events have cast a chill over the sector. Leaders of Portuguese crypto platforms are forced to open bank accounts outside the country to run the business. Banks often cite certain reasons for not working with crypto businesses. Between money laundering and know-your-customer rules, banking institutions are required to report transactions.
However, Criptojola did not escape lynching despite being the first crypto company to obtain a license from the central bank. In addition, Pedro Borges claims that his company has always worked hand in hand with the authorities and followed all compliance procedures.
Currently, three of the five trading platforms authorized by the Central Bank of Portugal have had their bank accounts closed during this year. However, the trend seems to focus solely on crypto exchanges. Be that as it may, this situation somewhat chills investors located inside the country.
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