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Banks in Portugal closed accounts for cryptocurrency exchanges. Why?

European nations have shown a great deal of interest in the business ever since Asia dominated the cryptocurrency sector. While some have been creating laws, others are attempting to establish themselves as hotspots for cryptocurrencies. The tax-free treatment of the business has earned Portugal the reputation of being the crypto paradise of southern Europe. On the other hand, it was challenging for digital asset exchanges to operate there.

A recent investigation described how the bank accounts of CriptoLoja, a platform with a basis in Lisbon, were closed. The cryptocurrency exchange lost access to its Banco Santander and Banco Comercial Portugues bank accounts. These were the largest banks in the area, it should be mentioned. A few lesser-known banks also terminated CriptoLoja’s accounts.

When it comes to being associated with centralized organizations, the crypto-verse has run across several restrictions. The institutions mentioned above shut down these cryptocurrency exchanges without providing an official justification, however.

Exchanges allegedly received requests for information on suspicious transactions. Banco Comercial warned that failing to do so might affect the banking connections.

The current action of the banks has put Pedro Borges, the CEO of the exchange, in a difficult position while also confirming that CriptoLoja has always notified suspicious activity. Added he,

“All reporting and compliance requirements have been met. To operate the exchange, we must now depend on accounts outside of Portugal.

It should be mentioned that one of the earliest authorized exchanges in the area was CriptoLoja.

Why then are Portuguese banks closing accounts at an alarming rate?

Along with CryptoLoja, other cryptocurrency sites such as Mind the Coin and Rival Luso Digital Assets experienced the sudden closure of their bank accounts. BiG, situated in Lisbon, and the state-owned Caixa Geral de Depositos of Portugal have also closed down cryptocurrency exchange accounts.

While questionable transactions may be one factor, the general public believes that the recent industrial collapse may have had an influence on the banks’ choices. The only thing the bear market left behind were failed initiatives and bloody portfolios.

The idea that Bison Bank intended to dominate the cryptocurrency sector in Portugal also appeared. The Portuguese central bank, Banco de Portugal, authorized Bison Bank to provide cryptocurrency services in April of this year. This further gave the bank the ability to serve as the region’s exchange for digital assets.

The sudden closure of cryptocurrency exchange bank accounts may be related to Bison Bank’s possible monopoly on the Portuguese cryptocurrency business.

Pedro Guimaraes, the co-founder of Mind the Coin, said,

“Some banks merely inform us they don’t want to engage with crypto firms, even though there is no formal rationale for this. Starting a cryptocurrency company in Portugal right now is almost hard.

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