Criptoloja and Mind The Coin are the exchanges that received the permits in Portugal.
Exchanges are considered “virtual asset service providers.”
The Central Bank of Portugal granted licenses and permits to two bitcoin and cryptocurrency exchanges to work as virtual asset service providers in the country. The exchanges Criptoloja and Mind The Coin are the first two entities recognized under this concept, as was made public by the banking regulator on June 19.
In the announcement, there is a mention claiming that the operators will be able to offer services of exchange by fiat, transfer, custody, and administration of cryptocurrencies. Likewise, both entities and natural or legal persons must report their actions to the Portuguese tax office.
For its part, the Central Bank of Portugal (BCP) affirmed that the appointment of these companies as exchange operators of virtual assets happens under article 112-A of Law 83/2017, relative to money laundering, and the Notification of the BCP number 3/2021, of April 23, 2021, which regulates the activities directly.
Pedro Borges, CEO of Criptoloja, told specialized media that the exchange had applied as an exchange operator before the Portuguese authorities on September 29, 2020. The company could release to the public its full services in the coming weeks. At the moment, it is in a stage of registering users who want to trade on the platform.
The bank approved the commercial operations of these companies framed in the regulatory suggestions of the International Financial Action Group, which establishes the figure of virtual asset service providers (VASP, for its acronym in English) for those entities that operate with any form of money transmission.
Even non-custodial services, such as decentralized exchanges, would fall under this FATF definition. This could have potential consequences on the privacy of users of Bitcoin (BTC) and other cryptocurrencies around the world.
Portugal Might be Opening its Doors to Bitcoin
Portugal is one of the most Bitcoin-friendly countries in Europe from a fiscal and legal point of view. Sharing a border with Spain, which has more severe fiscal policies on cryptocurrencies, companies, and investors may start to rely on the Portuguese country for greater benefits and advantages.
While, in Portugal, there are no specific responsibilities acquired for the activity with cryptocurrencies, in Spain, there are several legal frameworks that do impose the payment of taxes on investors according to the profits and exchanges they make.
This year the number of cryptocurrency taxpayers in Spain faced a reduction, with 15,000 summoned by the authorities. During 2020 that figure surpassed 60,000 taxpayers, which could suggest that many investors have not reported their activities, have not sold their cryptocurrencies for euros, or could have moved their investments to another jurisdiction.
It is also vital to consider that Portugal offers professional residents in the areas of technology, innovation, and arts, the payment of fewer taxes, which keeps being attractive for entrepreneurs in the cryptocurrency world.
By: Jenson Nuñez
