Key Takeaways
- BiG has begun blocking fiat transactions to cryptocurrency platforms.
- The bank’s decision is likely due to growing scrutiny of crypto activities across Europe.
- Despite BiG’s stance, other Portuguese banks, such as Caixa Geral de Depósitos, still permit fiat transfers to crypto platforms.
Portugal’s reputation as a crypto-friendly haven is under new scrutiny after one of its major banks, Banco de Investimentos Globais (BiG), moved to block fiat transfers to cryptocurrency platforms.
BiG’s Move to Restrict Transfers
The decision comes amid increased pressure from European regulators on financial institutions to tighten oversight of crypto-related activities.
BiG pointed to compliance with recommendations from the European Central Bank, the European Banking Authority, and the Bank of Portugal.
The banking giant emphasized that its decision to stop fiat transfers also aligns with its efforts to adhere to national regulations aimed at combating money laundering and terror financing.
Delphi Labs co-founder José Maria Macedo criticized BiG, warning that it could encourage more people to adopt DeFi (decentralized finance).
“Crypto is inevitable, banks are dead, and these abuses of power will only red pill more people into moving their wealth on-chain.”
Portugal’s Stance On Crypto
Despite BiG’s restrictions, other Portuguese banks, like Caixa Geral de Depósitos, continue to allow fiat transfers to crypto platforms, indicating that BiG’s stance is not yet a widespread practice.
Portugal was once a crypto tax haven.
However, in 2023, it introduced a 28% capital gains tax on short-term crypto holdings, reflecting a shift towards tighter regulation.
It’s clear that BiG is trying to align with broader European trends, as Markets in Crypto-Assets Regulation (MiCA) seeks to establish a unified framework for digital assets across the EU.
It’s unclear if other Portuguese banks will follow suit, but so far, they have not.
Giuseppe Ciccomascolo began his career as an investigative journalist in Italy, where he contributed to both local and national newspapers, focusing on various financial sectors.
Upon relocating to London, he worked as an analyst for Fitch's CapitalStructure and later as a Senior Reporter for Alliance News. In 2017, Giuseppe transitioned to covering cryptocurrency-related news, producing documentaries and articles on Bitcoin and other emerging digital currencies. He also played a pivotal role in establishing the academy for a cryptocurrency exchange website. Crypto remained his primary area of interest throughout his tenure as a writer for ThirdFloor.
