Major Portuguese bank restricts crypto platform transfers

The action reflects increased regulatory scrutiny of cryptocurrency transactions in Portugal.

Fiat transactions on cryptocurrency platforms have been suspended by Investimentos Globais, one of Portugal’s largest banks.

BiG, which will manage assets worth close to 7 billion euros (about $7.2 billion) by 2023, announced this policy change in a tweet published by Delphi Labs co-founder José Maria Macedo.

BIG, one of Portugal’s largest banks, is now blocking transfers to crypto exchanges, citing ECB guidance on “risks associated with virtual assets”🤦

Crypto is inevitable, banks are dead and these abuses of power will only cause more people to move their wealth on-chain pic.twitter.com/QFTfWCcKdz

— José Maria Macedo (@ZeMariaMacedo) January 7, 2025

Macedo expressed his disapproval of the bank’s activities, arguing that they could encourage more people to move their money to blockchain platforms. “Cryptocurrency is inevitable, banks are dead and these abuses of power will only be a red pill to more people moving their wealth on-chain,” he said.

It is noteworthy that this restriction appears to be specific to BiG. Fiat payments to cryptocurrency platforms are still possible through other Portuguese banks, such as the country’s largest bank, Caixa Geral de Depósitos, according to user reports.

Portugal has long been seen as a country that welcomes cryptocurrency. The Portuguese Tax and Customs Authority announced in 2019 that cryptocurrency purchases and sales are tax-free, meaning they are not subject to value added tax or capital gains tax.

However, Portugal implemented a new crypto tax plan in 2023 that imposes a 28% capital gains tax on short-term (less than 365 days) cryptocurrency assets and exempts long-term (more than one year) assets from tax, except for some tokens. Such as securities and those in certain jurisdictions.

This action by BiG is part of a larger trend in Europe where regulations regarding cryptocurrencies are under greater scrutiny. Financial institutions’ interactions with cryptocurrency platforms will be affected by the CryptoAsset Markets Regulation, which seeks to create a comprehensive regulatory framework for digital assets across the European Union.

Countries around the world regulate cryptocurrencies in various ways. For example, in September 2021, El Salvador became the first country to accept Bitcoin as legal tender and mandate its use in payments.

However, according to recent sources, El Salvador agreed to reduce its Bitcoin (BTC) projects in order to receive a $1.4 billion loan from the IMF. As part of the regulation, businesses will no longer be required to use BTC and the government will purchase less BTC.

These developments highlight the dynamic and changing global landscape of cryptocurrency regulation as countries seek to strike a balance between innovation and financial stability and security.