Investimentos Globais (BiG), one of Portugal’s leading banks, has announced the suspension of fiat-to-cryptocurrency transfers, a move that reflects increasing regulatory scrutiny over crypto transactions in the country. This decision, disclosed by José Maria Macedo, co-founder of Delphi Labs, signals a significant shift in the bank’s stance on cryptocurrency.
Macedo criticized BiG’s decision, arguing that it could push more people toward decentralized blockchain platforms. In a tweet, he remarked, “Cryptocurrency is inevitable, banks are dead, and these abuses of power will only red pill more ppl (people) into moving their wealth on-chain.”
The restrictions appear to be limited to BiG, as users have reported that other major Portuguese banks, including Caixa Geral de Depósitos, the country’s largest financial institution, continue to process fiat transactions to crypto platforms.
Portugal, long regarded as a crypto-friendly nation, has seen several changes in its regulatory landscape in recent years. In 2019, the Portuguese Tax & Customs Authority declared that cryptocurrency transactions were exempt from value-added tax (VAT) and capital gains tax. However, in 2023, the country implemented a new tax framework, imposing a 28% capital gains tax on short-term crypto holdings (less than 365 days) while leaving long-term holdings tax-free, with some exceptions for specific tokens and assets from certain jurisdictions.
BiG’s decision aligns with broader regulatory trends across Europe, where governments and financial institutions are increasingly scrutinizing cryptocurrency-related activities. This includes the Markets in Crypto-Assets Regulation, a comprehensive EU-wide initiative designed to regulate digital assets.
Globally, governments continue to adopt varied approaches to cryptocurrency regulation. El Salvador, for example, became the first country to recognize Bitcoin as legal tender in 2021, requiring its use for payments. However, recent reports indicate that El Salvador is scaling back its Bitcoin projects as part of a deal with the International Monetary Fund (IMF), which has pledged a $1.4 billion loan in exchange for a reduction in Bitcoin-related activities.
As nations grapple with balancing innovation and financial stability, these developments underscore the fast-evolving global landscape of cryptocurrency regulation.
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