Home Business Portuguese Banks Are Shutting Down Crypto Exchange Accounts, Media Reveal CryptoGlobe

Portuguese Banks Are Shutting Down Crypto Exchange Accounts, Media Reveal CryptoGlobe

Portuguese Banks Are Shutting Down Crypto Exchange Accounts, Media Reveal CryptoGlobe

According to media reports, major Portuguese banks have started closing or refusing to open accounts for cryptocurrency platforms such as exchanges. The move threatens to tarnish the country’s image as one of Europe’s most crypto-friendly destinations, a haven for bitcoin enthusiasts.

Portuguese crypto firms hit by bank account closures

Portugal, one of Europe’s leading crypto hubs, risks losing its appeal for crypto businesses and talent working in the industry as some of its biggest banks are now closing the accounts of companies operating with digital currencies .

Last week, the country’s largest publicly listed bank, Banco Comercial Portugues, and another major institution, Banco Santander, closed all accounts at Lisbon-based Criptoloja, Bloomberg reported, citing the co-founder and CEO. of the stock market, Pedro Borges. The development follows the decision of two small banks to close the accounts of the platform.

No official explanation has been provided in any of these cases, the crypto entrepreneur pointed out. Meanwhile, the public bank Caixa Geral de Depositos and the Lisbon-based company Big have also started to reject or shut down crypto exchange accounts, Jornal de Negocios disclosed this week.

At least two other crypto brokers have been hit by bank account closures this year, the report notes. Mind the Coin has been unable to open an account for months, and rival Luso Digital Assets has had some of its accounts shut down, its executives have complained.

Portuguese crypto companies forced to open accounts outside the country

Anti-money laundering and know-your-customer rules are often the main reasons lenders give for refusing to work with crypto companies. Banco Comercial explained that it is required to report suspicious transactions that may lead to the termination of banking services for certain entities. Banco Santander is acting “in accordance with its perception of risk”, a representative said.

“We now have to rely on using accounts outside of Portugal to manage the exchange,” Criptoloja founder Pedro Borges admitted. This is despite the fact that his company became the first to obtain a license from the central bank last year. Criptoloja has always informed authorities of suspicious transactions and followed all compliance procedures, he stressed. Pedro Guimaraes of Mind the Coin added:

Although there is no official explanation, some banks simply tell us that they do not want to work with crypto companies. It is almost impossible to start a crypto business in Portugal right now.

Three out of five coin trading platforms authorized by Bank of Portugal had their accounts closed this year. Although it is not clear if the trend affects other companies in the sector, it could be a sign of a tougher environment in Portugal, which attracted crypto enthusiasts with its zero percent tax about crypto gains, affordable cost of living, and mild weather.

Keywords in this story

Account, account closures, accounts, Bank, Bank accounts, banks, Crypto, crypto companies, crypto exchanges, crypto companies, crypto platforms, Cryptocurrencies, Cryptocurrency, Exchanges, Portugal, Portuguese

Do you expect the bank account closures to affect other crypto businesses in Portugal? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a tech-savvy Eastern European journalist who loves Hitchens’ quote: “Being a writer is who I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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