Portuguese bank blocks cryptocurrency transfers amid EU regulations

Portugal’s largest bank Banco de Investimentos Globais (BiG) has recently taken the step of blocking fiat transfers to cryptocurrency platforms, citing compliance with new European Union regulations. This marks a significant change for Portugal, which was once considered a haven for cryptocurrency enthusiasts.

The decision comes in line with growing regulatory pressure from European authorities such as the European Central Bank and the Bank of Portugal, particularly in areas such as anti-money laundering and counter-terrorist financing.

Portugal’s restrictive approach to crypto could lead its crypto users to invest in other countries that are bankrupting their economies. For now, it appears that this is an independent move by BiG as no similar announcements have been made by other banks.

Is this the beginning of tighter cryptocurrency controls in Portugal?

Is Portugal becoming Europe's El Salvador?
While BiG has restricted these transfers, other banks, including Caixa Geral de Depósitos, continue to allow them. This suggests that BiG’s move is not yet a nationwide trend. Portugal, once known for its crypto-friendly policies, has introduced a new tax scheme in 2023 that will impose a 28% capital gains tax on short-term crypto holdings. This marks a change from previous crypto-friendly policies.

Furthermore, the timing of BiG’s decision coincides with the European Union’s implementation of the Markets in Cryptoassets (MiCA) Regulation, which aims to provide a unified regulatory framework for digital assets across Europe. Despite MiCA’s efforts to clarify, BiG’s actions show that interpretations of these regulations can vary, even within the same country.