Portuguese Bank Blocks Fiat Transfers To Crypto Platforms

Key Points:

• Portuguese Bank BiG blocks fiat transfers to crypto platforms citing compliance with regulatory guidelines.
• The move reflects growing scrutiny of digital assets by EU institutions.

Portuguese Bank BiG blocks fiat transfers to crypto platforms citing compliance with ECB, EBA, and Portugal’s anti-money laundering regulations.

Portuguese Bank BiG Restricts Transfers to Crypto Platforms

One of the largest banks in Portugal, Banco of Investimentos Globais, BiG, has blocked fiat transfers to crypto platforms. This aligns with the compliance policies of the European Central Bank, or ECB, the European Banking Authority, or EBA, and the Bank of Portugal which strive for reduced digital assets risks. BiG’s move comes to reinforce its commitment to the prevention of money laundering and terrorism financing through the introduction of stricter regulations.

Despite its large market exposure, BiG remains an outlier with other Portuguese banks such as Caixa Geral de Depósitos still allowing fiat-to-crypto transactions. Crypto proponents have lashed out at the decision, stating that such restrictions would hamper innovation and eventually force users to switch to decentralized financial systems, according to Cryptoslate.

Read more: Portuguese Parliament rejects bill to tax Bitcoin and Crypto

Regulatory Pressure Drives Portuguese Bank to Block Crypto Payments

The recent decision of Banco of Investimentos Globais to block the transfer of fiat money to crypto platforms indicates increased scrutiny over digital assets in the EU. BiG justified this with a need for compliance with regulatory directives, which showed the influence that the European Central Bank and other financial authorities play in shaping crypto-related policies.

That stands in contrast to other EU leaders who have called for increased blockchain technology adoption. To critics, the move stifles innovation, but to proponents, it’s a necessary step to ensure financial stability and prevent illicit activities exposing a growing tension between regulation and crypto advancement.