One of Portugal’s leading financial institutions, Banco de Investimento Global (BiG), has made headlines by suspending fiat transactions to cryptocurrency platforms. This decision reflects a significant shift in the country’s regulatory landscape regarding digital assets, as BiG aligns itself with increasing scrutiny from European regulators.
This decision comes amid a broader trend across Europe, where financial institutions are facing stricter regulations regarding cryptocurrencies. The European Union’s Markets in Crypto-Assets Regulation (MiCA) aims to create a unified framework for digital assets, impacting how banks interact with crypto platforms. BiG’s actions are seen as a response to these evolving regulations, which emphasize compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) laws.
Impact On The Crypto Landscape
While BiG’s decision marks a significant shift, it is important to note that not all Portuguese banks are following suit. Caixa Geral de Depósitos, the largest bank in Portugal, continues to facilitate fiat transfers to crypto platforms, indicating that BiG’s stance is not yet a nationwide trend.
The tightening of regulations in Portugal is a departure from its previous reputation as a crypto-friendly nation. In 2019, the country was known for its tax-free crypto trading, but recent changes have introduced a 28% capital gains tax on short-term crypto holdings, while long-term investments remain tax-free.
As Portugal navigates its evolving relationship with cryptocurrencies, BiG’s decision to halt fiat payments to crypto platforms highlights the tension between regulatory compliance and the need for innovation in the financial sector.
In this rapidly changing landscape, it will be crucial for both banks and regulators to find a way to support innovation while ensuring compliance with necessary regulations.
