Portugal’s main bank blocks Fiat transfers to crypto platforms amid growing regulatory concerns

Portugal’s Banco de Investimentos Globais (BiG) has suspended fiat transfers to cryptocurrency platforms, citing compliance with European Central Financial institution (ECB) tips on the dangers related to digital belongings.

The choice was highlighted following an e-mail to prospects warning of the financial institution’s new coverage. This transfer follows rising scrutiny of crypto markets in Europe, together with the European Union’s push for stricter tips underneath the Markets in Crypto Belongings (MiCA) laws. Nevertheless, some consultants argue that this transfer might backfire by pushing customers to decentralized platforms, outdoors the management of conventional banks.

Regardless of this shift from BiG, different main Portuguese banks, reminiscent of Caixa Geral de Depósitos, are reportedly nonetheless processing crypto-related transfers. This growth might imply a extra cautious strategy from monetary establishments in Portugal, regardless of the nation’s traditionally crypto-friendly stance, reminiscent of exempting crypto transactions from VAT and capital positive factors taxes.

Delphi Labs co-founder José Maria Macedo wrote on social media: “One of many largest Portuguese banks BIG is now blocking transfers to crypto exchanges, citing ECB tips on the dangers related to digital belongings. Crypto is inevitable, banks are lifeless, and this abuse of energy will solely drive extra folks to maneuver their wealth by the chain.

That is a part of a broader development of stricter laws being launched. Portugal was as soon as thought-about a crypto tax haven, with no VAT or capital positive factors tax on cryptocurrency. However in 2023, it launched a 28% capital positive factors tax on short-term crypto holdings.

Whereas some international locations, reminiscent of El Salvador, have scaled again cryptocurrency adoption attributable to financial challenges, Portugal’s evolving stance displays broader international considerations concerning the dangers related to digital currencies.