A total of 12 applications from companies wishing to supply crypto-related services within Portugal are currently being considered by the central bank. These applications remain pending decision despite recent reports that certain commercial banks have closed accounts for already licensed operators.
Portugal: Binance among Cryptocurrency Platforms Looking for Authorization
Portugal’s monetary authority is currently evaluating requests submitted by 12 entities that intend to offer Portuguese clients services for virtual assets, Dinheiro Vivo unveiled. The crypto firms need a license from Banco de Portugal (BdP) to work in the country, still considered one of Europe’s most crypto-friendly jurisdictions.
The final decisions regarding the applications will be made by the end the year. That’s unless the regulator asks the companies to provide additional information, in which case the deadline could be moved to 2023, the Portugal News English-language portal reported, quoting the business news outlet.
Among the applicants to enter the Portuguese crypto market is Binance, the world’s largest cryptocurrency exchange by trade volume. The digital currency trading platform has started to recruit talent in the country, having posted six vacancies on its Portuguese page, even though it’s still waiting for a green light from the BdP.
The five existing crypto brokers in Portugal are Mind the Coin and Criptoloja. The new requests are an indication that the nation’s crypto industry is developing and is likely to soon grow to a total of 17 registered exchanges.
Crypto companies face many challenges. Recently, a report revealed that large Portuguese banks have closed their accounts and refused to open new ones. This is affecting normal business operations in this sector.
According to an article published by Jornal de Negócios and quoted by Bloomberg, the banks Caixa Geral de Depósitos, BCP, Santander, Abanca, and BiG are shutting down the accounts of four of the five digital asset managers.
In a statement, the Bank of Portugal said it’s monitoring the problem but also pointed out that its competences, when it comes to crypto assets, do not extend to “areas that go beyond the prevention of money laundering and the financing of terrorism.” The financial authority elaborated:
In these instances, the decision about whether to open or keep bank accounts is influenced by risk management strategies that each institution has in place.
Portugal, which has been a cryptocurrency-friendly nation for many years may be affected by the situation. With its zero percent tax on crypto gains and affordable living expenses, the EU member state has attracted many crypto lovers, especially in light of the Covid-19 pandemic.
If Banco de Portugal allows more operators to the crypto sector, do you believe that Portuguese banks would change their approach towards cryptocurrency businesses? Please leave your comments below.
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