Bancos de Portugal accounts of companies that work with cryptocurrencies
Portugal is one of the friendliest nations for cryptocurrencies, particularly due to the tax exemptions the country offers investors. However, some of the main Portuguese banks close accounts of cryptocurrency exchanges operating in the country.
The action came from two banks, including Banco Comercial Português (BCP), the largest in the country, and Banco Santander, originally from Spain. At least three exchanges had their accounts closed by ambassadors as institutions. One of them is CriptoLoja, which is headquartered in the Portuguese capital, Lisbon.
According to the banks, the companies suggested irregularities in their operations that led to the closing of the accounts. However, CryptoLoja did and said that it was always operating to the laws.
Banks close company accounts
Last week, BCP closed the CriptoLoja account. Pedro Borges, CEO and founder of the exchange, confirmed that another bank, Banco Santander, also started a similar move. An official justification for the closing of the accounts of two institutions.
In addition, two other banks, names were also not disclosed as CriptoLoja accounts. Once again, the banks gave no explanation for the closure.
But the banks didn’t just target CryptoLoja, as two other exchanges in Portugal were left without their bank accounts. Mind the Coin, for example, lost all of its accounts at the beginning of the year. Since then, says CEO Pedro Guimarães, the exchange has not been able to access any other bank.
Finally, Luso Digital Assets also had some of its accounts closed this year in Portugal, said CPO Ricardo Filipe.
BCP points out irregularities; exchanges belie
Around the world, regulators have stepped up their exercises to address investor risks and money laundering problems. Therefore, they use this reason as a justification for many accesses to exchanges.
In this regard, the BCP said that its duty is to inform authorities about “suspicious transactions” whenever they find it. However, the bank did not respond to the type of irregularity in the operations of exchanges that had an account there.
Likewise, an executive at Banco Santander said that the bank acts “in accordance with its perception of risk”. And again, the bank did not say whether there are irregularities in the closed accounts.
On the other hand, none of Borges stated that there is no irregularity in the operations of CriptoLoja. According to the CEO, an exchange to the authorities about any suspicions without suspicions. The CEO regretted the decision and said it will hamper the company’s operations.
“Now we have to rely on using accounts outside Portugal to manage an exchange. All compliance and reporting procedures were followed,” said Borges.
From heaven to hell
Portugal is one of the European countries that does not levy taxes on capital gains on cryptocurrency transactions. This exemption turned the country into a kind of “tax haven” for those operating in this market.
The measure increased the flow of investors from exchanges in the country. It should be noted that most exchanges have a license from the Portuguese central bank to operate. Therefore, it is not a lawless market.
However, the recent move may signal a change and resistance to the environment in Portugal’s cryptocurrency sector. The threats recognized when a country’s tax-exempt bloc failed.
Now, the risk is that exchanges cannot open accounts in Portugal and, consequently, cannot process their customers’ deposits. Pedro Guimarães, founder of Mind the Coin, said:
“Although there is no official explanation, some banks just tell us that they do not want to work with cryptocurrency companies. It is almost impossible to start a cryptocurrency business in Portugal right now.”
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