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The Central Bank of Portugal Officially Recognizes Two Cryptocurrency Exchanges as VASPs

The Central Bank of Portugal Officially Recognizes Two Cryptocurrency Exchanges as VASPs
PC :- Rachael King

The Central Bank of Portugal, Banco de Portugal, has finally issued operating licenses to two local Portuguese cryptocurrency exchanges. The bank recognizes Criptoloja and Mind The Coin as official virtual asset providers (VASPs). This is a pretty monumental decision as it’s the first time in the nation of Portugal, crypto exchanges have officially granted licenses.

Banco de Portugal

In the small European nation of Portugal, it is the Central Bank, which is responsible for recognizing and officially registering virtual asset providers. The bank also makes sure that these entities are legally compliant with the regulatory provisions. In turn, it prevents severe cases such as money laundering and terrorist financing.

Crypto Exchange

This particular license allows Mind The Coin and Criptoloja to exchange between virtual assets and fiat currencies. They can also initiate an exchange between different virtual assets as well. 

This decision of opening up licenses for two crypto-exchange companies was in process for almost nine years. The initial registration of Criptoloja was reported made in September of 2020.

Portugal and Cryptocurrency

The global community hails Portugal as one of the most crypto-friendly countries in Europe. The country is considered a haven for the people indulging in the crypto space. In Portugal, the income gained from cryptocurrency is exempt from VAT and capital gains taxes. Additionally, this licensing of crypto exchanges makes it much easier to deal with cryptocurrency.

However, the clearing of these two crypto exchanges does not mean the bank is recognizing cryptocurrencies as legal tender.

After El Salvador and Paraguay, Portugal is also now taking decisions in favor of cryptocurrencies and taking a step towards the right direction, the evolution.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.