Portuguese Banks Are Closing Crypto Exchanges' Accounts

Portuguese banks began closing accounts that belong to crypto exchanges, citing 'risk management' as the main reason for the closures. Portugal gained its reputation for welcoming cryptocurrency exchanges as no tax is imposed on crypto earnings.

These banks are Banco Comercial Portugues (BCP), Banco Santander, Caixa Geral de Depósitos, BiG, and Abanca. At least four crypto exchanges had their accounts closed according to recent reports.

All the exchanges are registered with the central bank of Portugal. These exchanges are Criptoloja, Mind the Coin and Luso Digital Assets. The 4th exchange requested the media to remain anonymous.

The Bank of Portugal is not Intervening

The Bank of Portugal Governor, Mário Centeno commented the following on the banks' decision: "The decision to open or continue to offer bank account services depends in such cases on the risk management policies that each banking institution puts into place.”

Pedro Guimaraes, the Founder of Thoughts the Coin stated that an official explanation was provided by the banks: "While there is no official explanation, some banks just tell us they don’t want to work with crypto companies. It’s almost impossible to start a crypto business in Portugal right now."

While no official explanation was provided, some are suggesting 'suspicious transactions' have led to the bank's decision to close the accounts. Some suggest that if the bank suspects money-laundering is being committed or improper enforcement of KYC, the bank account will be closed.

Although Portugal rejected 2 bills imposing a crypto tax, they were dismissed in May. However, there are expectations from the ruling party to present its own bill taxing cryptocurrencies.