Portuguese Bank Blocks Fiat Transfers to Crypto Exchanges Amidst Growing Regulatory Scrutiny

Portugal’s top bank, Investimentos Globais, also known as BiG, has announced that it will no longer allow fiat transactions to cryptocurrency platforms. This decision comes as regulatory scrutiny of cryptocurrency transactions in Portugal continues to grow.

BiG, which is set to manage assets worth approximately €7 billion by 2023, cited the European Central Bank’s (ECB) guidance on the “risks associated with virtual assets” as the reason behind this policy change. This move has been met with disapproval from some in the cryptocurrency community, who argue that it will only encourage more people to move their wealth to blockchain platforms.

Cryptocurrency is inevitable, banks are dead, and these abuses of power will only red pill more ppl into moving their wealth on-chain.

Notably, this restriction appears to be exclusive to BiG, as fiat payments to cryptocurrency platforms are still possible through other Portuguese banks, such as Caixa Geral de Depósitos.

Portugal’s Cryptocurrency Environment

Portugal has long been seen as a country that welcomes cryptocurrency. In 2019, the Portuguese Tax & Customs Authority announced that cryptocurrency purchases and sales were tax-free, exempt from value-added tax and capital gains tax. However, in 2023, the country implemented a new crypto tax scheme, which imposed a 28% capital gains tax on short-term cryptocurrency holdings.

This move by BiG is part of a larger trend in Europe, where regulations are becoming increasingly scrutinized. The Markets in Crypto-Assets Regulation aims to create a comprehensive regulatory framework for digital assets throughout the European Union.

Global Cryptocurrency Regulation

Countries around the world are regulating cryptocurrencies in various ways. For example, El Salvador became the first country to accept Bitcoin as legal tender in 2021. However, recent sources indicate that the country has agreed to reduce its Bitcoin projects in order to secure a $1.4 billion loan from the International Monetary Fund (IMF).

As countries strive to balance innovation with financial stability and security, these developments highlight the evolving global environment of cryptocurrency regulation.

For more information on cryptocurrency news and updates, visit Global Crypto News.

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