BiG’s announcement raises the question if this represents the beginning of stricter regulations imposed on cryptocurrencies, as Portugal was among the countries which promoted and facilitated the crypto space. Also, the financial institution’s decision comes during a period of scaled focus from European authorities, including the European Central Bank (ECB) and the Bank of Portugal, on Anti-Money Laundering (AML) and counter-terrorism financing (CTF). However, other banks operating in the region, like Caixa Geral de Depósitos, still support fiat transfers to crypto platforms, in turn underlining that BiG’s move is not a nationwide shift.
Furthermore, BiG’s choice falls in line with the EU’s new Markets in Crypto-Assets Regulation (MiCA), which centres around developing uniform rules for digital assets across Europe. Yet, the announcement underlines that even within the same region, financial institutions can have different interpretations of these regulatory requirements.
BiG’s latest decision begged the question if Portugal’s more restrictive tactic could influence crypto investors to focus on other countries and regions, potentially leading to a regression in the nation’s economy. Despite once being considered crypto-friendly, Portugal has been taking steps to control this sector, most recently imposing a 28% capital gains tax on short-term crypto holdings. Additionally, enforcing new crypto taxes and tighter controls could lead to less innovation in the industry, negatively affecting the sector.
Moreover, Portugal’s view is similar to worldwide trends, with several countries, including El Salvador, minimising their focus on cryptocurrencies due to economic difficulties, while others, such as Switzerland and the Check Republic, continue to facilitate them. BiG’s move raised debates regarding crypto’s future in Portugal, with the local community being uncertain about it.
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