Portugal’s Banco de Investimentos Globais (BiG), one of the country’s largest banks, has decided to block fiat transfers to cryptocurrency platforms, citing compliance with European Central Bank guidelines and concerns over the risks associated with virtual assets. This unexpected move has sparked conversations about the country’s shifting attitude toward cryptocurrencies and the implications for its financial ecosystem.
José Maria Macedo, co-founder of Delphi Labs, publicly criticized the decision on X (formerly Twitter), sharing an email from BiG that outlined the reasons for the change. The bank’s message informed customers that transfers to Payward Ireland Ltd, the operator of Kraken, would no longer be processed. BiG cited obligations under anti-money laundering and counter-terrorism financing regulations as the primary drivers of its policy shift. Macedo argued that such restrictions could lead users to migrate toward decentralized blockchain platforms, bypassing traditional banks entirely.
Portugal has long been seen as one of Europe’s most crypto-friendly nations. In 2019, the Portuguese Tax & Customs Authority exempted cryptocurrency transactions from value-added tax and capital gains tax, attracting blockchain entrepreneurs and digital asset investors to the country. However, recent developments suggest that this favorable stance is evolving. In 2023, Portugal introduced a 28% capital gains tax on short-term crypto holdings while maintaining tax exemptions for assets held longer than a year. Despite these changes, the country remains an attractive destination for crypto projects due to its comparatively lenient policies.
BiG’s action, while significant, appears to be an isolated case, as other Portuguese banks like Caixa Geral de Depósitos and Santander have not followed suit. However, the decision reflects broader trends in Europe, where regulatory scrutiny over the crypto market has intensified. The EU’s upcoming Markets in Crypto-Assets Regulation aims to create a comprehensive framework for digital assets, addressing consumer protection, market integrity, and environmental sustainability.
Rising cybercrime rates have also contributed to growing caution among financial institutions. In Portugal, reported cybercrime cases jumped from 193 in 2019 to 2,124 in 2022, with crypto scams and ransomware attacks becoming increasingly common. One particularly notable case involved two Portuguese residents losing over $312,000 to a fraudulent staking platform. Such incidents highlight the vulnerabilities associated with the crypto space, pushing regulators and banks to adopt stricter measures.
Beyond crypto scams, concerns about data privacy have added to regulatory tightening. In 2023, Portugal’s National Data Protection Commission temporarily banned Worldcoin from collecting biometric data using its Orb devices, citing risks to personal data, particularly for minors. These developments point to an increasingly cautious regulatory environment that seeks to balance innovation with consumer protection.
BiG’s decision could signal a cautious approach among other financial institutions as they navigate the growing complexities of the crypto market. While Portugal continues to attract blockchain innovators, regulatory pressures may prompt some investors and projects to reconsider their strategies. The rise of decentralized finance platforms, which bypass traditional banking systems, further complicates the landscape and raises questions about the future role of banks in the crypto economy.
This moment marks a pivotal point for Portugal’s relationship with cryptocurrencies. The country faces the challenge of maintaining its appeal as a crypto hub while addressing the risks associated with digital assets. BiG’s actions, though currently isolated, may serve as a bellwether for how other banks and institutions respond to regulatory and market pressures in the years to come.
