Fiat Transaction Restrictions Are Implemented by BiG Bank
Banco de Investimento Global (BiG), Portugal’s top financial institution, has made the decision to stop accepting fiat payments on cryptocurrency sites. This action reflects the nation’s increasing regulatory monitoring of digital assets. The restriction was announced by BiG, which oversees assets worth around €7 billion.
Industry Experts’ Criticism
Crypto enthusiasts have criticised the decision. Delphi Labs co-founder José Maria Macedo sent the alert on X (previously Twitter). According to Macedo, such actions might hasten the transfer of funds to blockchain systems.
Macedo highlighted the possible repercussions of the restriction in a tweet, saying, “Crypto is inevitable, banks are dead, and these abuses of power will only red pill more people into moving their wealth on-chain.”
Restricted Range of Limitations
It’s interesting to note that the prohibition on fiat transactions seems to just apply to BiG. According to reports, Caixa Geral de Depósitos and other well-known Portuguese banks still permit fiat transfers to cryptocurrency services. This discrepancy demonstrates the diverse strategies used by Portugal’s banking industry with relation to digital assets.
The Changing Crypto Laws in Portugal
Portugal used to be seen as a crypto-friendly sanctuary, but its regulatory landscape has changed significantly. The nation’s tax-free cryptocurrency trading regulations attracted international notice in 2019. While long-term investments are still tax-exempt, a 2023 tax reform now levies a 28% capital gains tax on short-term cryptocurrency holdings. This change reflects Portugal’s changing approach to striking a balance between innovation and regulatory control.
Trends in Crypto Regulation Across Europe
The BiG’s ruling is consistent with a larger European trend towards more stringent regulations. The Markets in Crypto-Assets (MiCA) Regulation of the European Union seeks to create a uniform framework for digital assets. Financial institutions have been forced to reconsider how they engage with cryptocurrency platforms as a result of this trend.
The Global Crypto Regulation Context
Countries like El Salvador have taken the risky decision to include cryptocurrency into their banking systems as international crypto regulations continue to change. These changes highlight the continuous difficulty governments face in finding a balance between encouraging innovation and maintaining security in the financial system.
