For the first time, the Banco de Portugal has issued operational licenses to local Crypto exchanges.
Criptoloja and Mind the Coin, two Portuguese exchanges, have officially been recognized as virtual asset service providers by the central bank. They are presently the only two on a list published on the bank’s website.
The judgment by Banco de Portugal took nine months to reach. Criptoloja is said to have registered for the first time in September 2020.
The license allows Criptoloja and Mind the Coin to conduct virtual asset and fiat currency exchanges on Portuguese land, as well as between various virtual assets. It also includes the costs of transfer services, custody, and asset administration.
Europe takes on cryptographic exchanges
In the past, Portugal was considered one of Europe’s most crypto-friendly countries. In Maitri Jean Galea, an investor and writer, said that the nation “becomes a paradise” for cryptographers. Unless it originates from professional trading activity, cryptocurrency revenue will remain free from VAT, and capital gains tax in the country.
Portugal, however, is not the first European nation to focus recently on cryptographic exchanges and services.
A class three Virtual Financial Asset (VFA) license was given to XCoins, the country’s biggest exchange, in late May, to the Malta Financial Services Authority (MFSA). Rob Frye, founder and CEO of XCoins, said at that time.
“Being one of the first cryptocurrency platforms to achieve this milestone means that we can keep paving the way for a more secure and regulated industry. Xcoins is leading the way as digital assets gain popularity worldwide.”
This is the second such license the MFSA has granted to a crypto exchange this year. The first ever crypto platform to receive a VFA License of the same class was Crypto.com. Gaining its license a few weeks before XCoins, the company called the milestone “a watershed moment for the cryptocurrency industry.”
In addition, Crypto.com made an application to the MFSA to become a licensed financial institution. However, while reportedly processing, the regulator’s decision is still not finalized. The Maltese authority did approve the platform’s application in principle in November 2020.