09 Jan
09Jan

One of Portugal's largest banks, Banco de Investimentos Globais (BiG), has recently blocked fiat transfers to cryptocurrency platforms. While other Portuguese banks have not followed suit, this decision highlights a potential shift in Portugal's approach to crypto-related activities.

Regulatory Uncertainty and Compliance Concerns

BiG cited compliance with directives from the European Central Bank, the European Banking Authority, and the Bank of Portugal as the primary reason for this move. The bank emphasized its commitment to adhering to national anti-money laundering and counter-terrorism financing regulations.

This decision comes amidst growing regulatory scrutiny of cryptocurrencies, even with the recent implementation of the Markets in Crypto-Assets Regulation (MiCA) in the EU. While MiCA aims to provide a unified framework for crypto operations, regulatory clarity and interpretation still pose challenges.

Portugal's Evolving Crypto Landscape

Portugal, once considered a crypto-friendly haven, has gradually tightened its regulatory stance. The introduction of a 28% capital gains tax on short-term cryptocurrency holdings in 2023 signaled a shift away from its previous laissez-faire approach.

Contrasting Approaches Across Europe

BiG's decision stands in contrast to the evolving crypto landscape across Europe.

  • Czech Republic: The central bank governor has proposed adding Bitcoin to the country's foreign exchange reserves.
  • France: Banking giant BPCE plans to offer Bitcoin and other crypto services in 2025.
  • Germany: Deutsche Bank is introducing a Layer-2 solution to improve compliance on public blockchains.
  • Switzerland: The Swiss National Bank favors tokenized assets over CBDCs, and the Swiss banking sector has actively embraced crypto.

MiCA's Impact

MiCA aims to ensure that only compliant cryptocurrency platforms operate within the EU. This should provide banks with greater confidence in the crypto market. However, BiG's decision suggests that the interpretation and implementation of MiCA may vary across different EU member states.

Conclusion

BiG's move to block crypto transfers represents a notable development in Portugal's crypto landscape. While other Portuguese banks have not yet followed suit, it highlights the ongoing challenges and uncertainties surrounding crypto regulation, even with the implementation of MiCA.

January 2025, Cryptoniteuae

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