Portugal’s Major Bank Blocks Fiat Transfers to Crypto Platforms Amid Growing Regulatory Concerns
Portugal’s Global Investment Bank (BiG) has suspended fiat transfers to cryptocurrency platforms, citing compliance with European Central Bank (ECB) guidance on risks associated with virtual assets.
The decision came after emails were sent to customers warning of the bank’s new policy. This follows increasing regulatory scrutiny of the cryptocurrency market in Europe, including the EU’s push for stricter guidelines under the Markets in Crypto-Assets (MiCA) regulation. However, some experts believe the move could backfire by pushing users to decentralized platforms outside the control of traditional banks.
Despite this shift by BiG, other major Portuguese banks such as Caixa Geral de Depósitos are reportedly still processing cryptocurrency-related transfers. The development could mean Portugal’s financial institutions will take a more cautious approach, despite the country’s historically friendly stance towards cryptocurrencies, such as exempting cryptocurrency transactions from value-added tax and capital gains tax.
José Maria Macedo, co-founder of Delphi Labs, wrote on social media: “BIG, one of Portugal’s largest banks, is now blocking transfers to cryptocurrency exchanges, citing ECB guidance on the risks associated with virtual assets. Cryptocurrencies are Inevitably, banks are dead and these abuses of power will only “red pill” more people to move their wealth on-chain,
This is part of a wider trend towards the introduction of tougher regulations. Portugal, once considered a cryptocurrency tax haven, imposes no VAT or capital gains tax on cryptocurrencies. But in 2023, it imposes a 28% capital gains tax on short-term cryptocurrency holdings.
While some countries, such as El Salvador, have reduced cryptocurrency adoption due to economic challenges, Portugal’s changing stance reflects broader global concerns about the risks associated with digital currencies.
