Portuguese Regulator Awards the Country’s First Crypto License to a Bank
Bison Bank will be the first bank in Portuguese to offer digital asset services to high net worth clients. A cryptocurrency trading platform and custodian services will be launched by it.
Bison Bank Gets a Green Light From Portuguese Regulator
Banco de Portugal, the Portuguese’s central bank (Banco de Portugal), issued a license to Bison Bank on Thursday that will allow the bank to operate as a virtual asset service provider (VASP).
The license will enable the bank to provide cryptocurrency trading services and to operate as a cryptocurrency custodian as a result of this.
Bison Bank has become the first bank in the Portuguese to be granted a license to conduct business in the cryptocurrency space. Previously, the central bank issued licenses to Utrust, an on-chain cryptocurrency payment company, and a few other cryptocurrency exchanges.
The local Portuguese bank now intends to establish a distinct subsidiary, Bison Digital Assets, and begin operating as a virtual asset exchange. Additionally, it will become the country’s first bank to provide cryptocurrency custody and trading services.
Similar to its traditional banking solutions, it will target the high net worth customer sector with its virtual asset services. The bank, on the other hand, has yet to disclose details about its virtual asset services.
Crypto Regulation in Portuguese
In April 2021, the central bank of Portuguese issued legislation restricting cryptocurrency exchanges to a licensing scheme maintained by the bank. Licenses were issued to Mind The Coin and Criptoloja, two of the first VASPs allowed to operate in the country, in June of that year.
The first “all categories” VASP license was awarded to Utrust in March 2021, allowing the exchange to offer crypto-to-crypto swaps, transfers to wallet addresses, and custody and storage of private keys on top of offering a fiat on-ramp for customers. Bison Bank has also been given a license in all categories.
Portuguese Uplifts Crypto Space With Friendlier Taxes
In the crypto-sphere, Portugal has long been seen as a crypto-friendly jurisdiction and a tax haven for investors and traders in digital currencies. Unless cryptocurrency is used as the primary source of income for a person, there are no capital gains taxes or personal income taxes levied in Portugal on cryptocurrency gains or income.
In April 2020, the country announced intentions to construct Technological Free Zones (ZLTs), regions where firms can test new products and services, with the country indicating that it was exploring blockchain technology as part of its digital transformation strategy.
In October 2021, the Portuguese government stated that it was forming a working group to develop a National Blockchain Strategy with the participation of public and private sector firms as well as experts. The organization has been researching how the technology may be used in the country and how regulatory restrictions could be clarified.
An initial draft of the strategy is expected to be revealed at the end of this month, with a final version published in June 2022, according to the Portuguese government.
