Portuguese Banks Starts Closing Accounts for Cryptocurrency Platforms

Major Portuguese banks have started closing or refusing to open accounts for cryptocurrency platforms such as exchanges, as reported. The move threatens to tarnish the country's image as one of Europe's most crypto-friendly destinations, a haven for bitcoin enthusiasts.

Portugal, a leading European crypto hub, is risking the loss of its attractiveness for crypto businesses and talent working in the industry as some of its largest banks are now closing accounts of companies operating with digital currencies.

Last week, the nation's biggest listed bank, Banco Comercial Portugues, and another major institution, Banco Santander, shut down all the accounts of Criptoloja, a Portuguese cryptocurrency exchange based in Lisbon, as reported. The development follows the decision of two smaller banks to close the platform's accounts.

"We now have to rely on using accounts outside Portugal to run the exchange," Criptoloja's founder Pedro Borges admitted. That's despite his company becoming the first to obtain a license from the central bank last year. Criptoloja has always informed authorities of suspicious operations and followed all compliance procedures, he pointed out. 

Pedro Guimaraes, founder of cryptocurrency startup Mind the Coin, added: "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." The company has been unable to open an account for months

Three out of five coin trading platforms authorized by Banco de Portugal have had their accounts shut down this year.