Portugal’s central bank is currently reviewing 12 requests from businesses wishing to offer crypto-related services in the country. Applications are awaiting a decision amid reports that some commercial banks have recently closed the accounts of already approved businesses.
Among the cryptocurrency platforms seeking approval in Portugal is Binance
Portugal’s financial authorities are currently evaluating requests submitted by 12 entities seeking to offer virtual asset services to Portuguese customers, Dinheiro Vivo said. Crypto companies need a license from the Bank of Portugal (BdP) to work in this country, considered one of the most crypto-friendly jurisdictions in Europe.
A final decision on the application is expected by the end of the year. That is unless the regulator asks companies to provide additional information, in which case the deadline could move to 2023, the Portuguese News English portal reported, citing Business News.
Among the applicants entering the Portuguese crypto market is Binance, the world’s largest cryptocurrency exchange by trading volume. The digital currency trading platform has posted six vacancies on its Portuguese page and has begun recruiting personnel in the country, even though it is still waiting for the green light from BdP.
Criptoloja, Mind the Coin, Digital Luso, Utrust, and Bison Digital Assets are the five crypto brokers already operating in Portugal. The new requirements are a sign that the country’s crypto industry is developing and is likely to soon grow to a total of 17 registered exchanges.
At the same time, crypto companies face certain challenges. Recently, reports have revealed that major Portuguese banks are closing accounts or refusing to open new ones, hampering normal business activities in the sector.
According to an article published by Jornal de Negócios and cited by Bloomberg, the banks Caixa Geral de Depósitos, BCP, Santander, Abanca, and BiG, four of the five digital asset managers The company said it is closing the accounts.
In a statement, the Bank of Portugal said it is monitoring the issue, but also noted that when it comes to crypto assets, its capabilities do not extend “beyond the area of prevention of money laundering and financing of terrorism.” Financial authorities elaborated.
The decision to open or maintain a bank account depends, in these cases, on the risk management policies each banking institution seeks to implement.
This situation could bring bad publicity to Portugal, which had established itself as a crypto-friendly jurisdiction over the past few years. This EU member state attracted many crypto enthusiasts with its zero percent tax on crypto profits, affordable cost of living, and mild Mediterranean climate, especially during the Covid-19 pandemic.
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