The action reflects growing regulatory scrutiny of cryptocurrency transactions in Portugal.
Fiat transactions to cryptocurrency platforms have been suspended by Investimentos Globais, one of Portugal’s top banks.
In a tweet published by José Maria Macedo, co-founder of Delphi Labs, BiG, which will manage assets close to €7 billion (about $7.2 billion) by 2023, announced this policy change.
https://twitter.com/ZeMariaMacedo/status/1876647406181245143
Macedo expressed disapproval of the bank’s activities, arguing that they could encourage more people to move their money to blockchain platforms. He said, “Cryptocurrency is inevitable, banks are dead, and these abuses of power will only red pill more ppl (people) into moving their wealth on-chain.”
It is noteworthy that this restriction seems to be exclusive to BiG. Fiat payments to cryptocurrency platforms are still possible through other Portuguese banks, such as Caixa Geral de Depósitos, the biggest bank in the country, according to user reports.
Portugal has long been seen as a country that welcomes cryptocurrency. The Portuguese Tax & Customs Authority announced in 2019 that cryptocurrency purchases and sales were tax-free, meaning they were not subject to value-added tax or capital gains tax.
However, Portugal implemented a new crypto tax scheme in 2023 that imposed a 28% capital gains tax on short-term (less than 365 days) cryptocurrency holdings while leaving long-term (more than a year) holdings tax-free, except some tokens, such as securities, and those from particular jurisdictions.
This action by the BiG is part of a larger trend in Europe where regulations are becoming more scrutinized of cryptocurrencies. Financial institutions’ interactions with cryptocurrency platforms will be impacted by the Markets in Crypto-Assets Regulation, which attempts to create a comprehensive regulatory framework for digital assets throughout the European Union.
Countries throughout the world are regulating cryptocurrencies in a variety of ways. For example, in September 2021, El Salvador became the first country to accept Bitcoin as legal tender, requiring that it be used for payments.
However, according to recent sources, El Salvador has consented to reduce its Bitcoin (BTC) projects in order to obtain a loan of $1.4 billion from the IMF. Businesses will no longer be required to utilize BTC as part of the arrangement, and the government will buy fewer BTC.
As countries attempt to strike a balance between innovation and financial stability and security, these developments highlight the dynamic and changing global environment of cryptocurrency regulation.
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