Commercial banks of Portugal are closing the accounts of crypto exchanges. This is because they wish to avoid the prospect of any criminal activity via such exchanges. The crypto exchanges may be licensed for operating in Portugal. But the banks do what they wish to when it is about shutting such accounts. Also, remember that if you want to trade cryptocurrencies then visit bitcoin-storm.live the official trading website.
During the last week, the largest bank in Portugal, Banco Comercial Portugues and Banco Santander (SAN) closed the crypto exchange of Portugal named CriptoLoja’s accounts. This exchange is no more allowed to hold any capital within such banks.
The exchange is not the only one earlier in 2022, cryptocurrency exchanges Luso Digital Assets and Mind the Coin had their accounts also closed by banks in Portugal. These banks were closing accounts of crypto exchanges from the past year. They cited concerns regarding crypto exchanges that facilitated money laundering and different criminal activities.
According to CriptoLoja’s CEO, Pedro Borges, from the side of the corporate, this is a nightmare. Doing a simple payment is never as easy as if you had a bank account in Portugal. Such a nuisance, such measures taken by banks are never good for this country.
Ricardo Felipe, the Chief Product Officer of Luso told that last year in 2021, Caixa Geral de Depósitos, the national bank provided him no such reason why this exchange is no more allowed to hold accounts with the bank. Banco Santander and Banco Commercial Portugues said that they closed accounts in 2022. This is because they suspected shady clients. Borges never responded to questions about such specific allegations. Felipe said that they already knew that it was only a matter of time and they will require to pay some attention and stay focussed on their efforts in their banking relationships.
He said that Portugal’s regulatory landscape lets banks terminate accounts legally with crypto exchanges without any regulator’s input. Even though they are having regulations of anti-money laundering or license from them, this is never something that establishes such type of operation with the banks.
Utrust is a Portuguese crypto exchange. Its chief strategy officer and founder, Nuno Correia told that the firm has never been affected by banks closing its accounts. Yet he can understand the discrepancies among the regulators and the sector of banking. Portugal’s central bank has huge expertise and embraces innovation. But it is never the same thing for the banking sector.
Regulatory Framework of Portugal
Banco de Portugal, regulates Portuguese banks. As per João G. Gil Figueira, a local lawyer the central bank will grant licenses to many crypto firms that operate in the country. Yet, commercially independent banks will be at their discretion to let such firms hold accounts in their banks and may terminate them whenever they want.
He told that banks like to work with firms that may never raise concerns over any tax evasion or money laundering. These two crimes have been seen to be commonly linked with brokers and lenders of the digital asset.
It looks like banks are not trusting the judgment of their regulators to issue such authorization for operating. Thus it is a mixture of banks becoming slow-moving, scared of money laundering, unprepared, and preferring other low-hanging things in different sectors.
Luso is unable to hold any account with the Banco de Portugal, he said that he is optimistic that European Union’s latest bill will be in effect in 2024. It will be proving regulatory clarity on the relationship between regulators and commercial banks.
Conclusion
MiCA will be providing a regulatory framework for the regulation of digital assets. It will include stablecoins and initial coin offerings all across the European Union. It will also be creating a common regime of licensing. It will let firms set up in every member nation of the European Union. Felipe said that with MiCA they will be turning into financial institutions. They will have that safeguard of provided partner bank accounts in the country. It will happen even if the bank wishes to conceal them. But he is never under the wrong impression. It is that MiCA will be doing anything for preventing banks to close accounts in the country. Instead, it will be working as a passport for cryptocurrency companies. Thus to operate in nations of Europe.
