According to media reports,

Major Portuguese bank have stopped opening accounts on cryptocurrency exchanges or closed them down altogether. This could damage Portugal’s reputation as one of Europe’s most crypto friendly destinations and a paradise for bitcoin enthusiasts.

Portuguese Crypto Firms Hit by Bank Account Closures

Portugal is a key European crypto hub that is at risk of losing its appeal to crypto businesses and the talent in the sector. Some of the country’s largest banks have closed accounts of digital currency-using companies.

Last Wednesday, Banco Comercial Portugues (the nation’s largest listed bank) and Banco Santander (another major institution), closed all accounts at Criptoloja in Lisbon, Bloomberg reported. The exchange’s CEO and co-founder, Pedro Borges, was quoted as saying. This development comes after two smaller banks decided to close the platform’s accounts.

No official explanation was given in these cases, the crypto-entrepreneur stressed. Meanwhile, the state-owned bank Caixa Geral de Depositos and the Lisbon-based BiG have also started rejecting or closing down crypto exchange accounts, Jornal de Negocios unveiled this week.

The report states that at least two other cryptocurrency brokers were affected by bank account closings this year. Mind the Coin was unable to open an account in months. Luso Digital Assets, a rival, had some of its accounts shut down. Mind the Coin’s executives also complained.

Portugal’s Crypto Businesses Forced to Open Accounts Outside Country

Lenders who refuse to work alongside crypto companies often cite anti-money laundering or know-your-customer laws as the primary reasons they won’t lend. Banco Comercial stated that it is required to report suspicious transactions, which could lead to the termination of certain banking services for certain entities. A representative for Banco Santander stated that Banco Santander acts in accordance with its risk perception.

” We now have to rely upon accounts outside Portugal to manage the exchange,” Criptoloja founder Pedro Borges said. This is despite the fact that his company was the first to be granted a license by the central bank last fiscal year. Criptoloja pointed out that he has reported suspicious activities to authorities and adhered to all compliance procedures. Mind the Coin’s Pedro Guimaraes said:

While there is no official explanation, some banks just tell us they don’t want to work with crypto companies. It is almost impossible to open a crypto-business in Portugal at the moment.

Three out of five coin trading platforms authorized by Banco de Portugal have had their accounts shut down this year. While it’s unclear whether the trend is affecting other companies in the sector, it could be a sign of a toughening environment in Portugal, which lured crypto enthusiasts with its zero-percent tax on crypto gains, affordable living costs, and mild climate.

Do you expect bank account closures to affect other crypto businesses in Portugal? Let us know in the comments below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, RaffMaster

Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage resulting from or in connection to the content, goods, or services discussed in this article.

Read More