For the first time, the Central Bank of Portugal “Banco de Portugal” has issued licenses to local crypto exchanges. In a list compiled by the Supreme Bank, two exchanges Criptologa and Mind the Coin were classified as virtual asset service providers. The decision by the bank didn’t come easy as it took nine months before it was concluded.
The licensing gives them legal permission to operate within the Portuguese locality. They can carry out crypto-related transactions leveraging digital assets and fiat. They would also facilitate transfer services, and administer the distribution and safety of the digital assets.
The asset from the Central Bank of Portugal comes within a period of massive adoption for cryptocurrencies from individuals and institutions. Criptologa was known to have made its initial registration in September 2020 but it did not receive a nod of compliance yet from the Portuguese government.
Europe Gradually Consenting to Crypto
The wave of cryptocurrency adoption in Europe is persistently gathering momentum. Portugal holds a reputation for being crypto-friendly. Unless in the case of cooperating trading entities, the nation exempts profit in cryptocurrency from VAT and capital gain taxes.
Aside from Portugal, other countries in the continent appreciate the crypto industry. Malta Financial Service Authority (MFSA) awarded Xcoins exchange a Class 3 Virtual Financial Asset. This happens to be the second of such licenses Malta has issued to the fast-rising cryptocurrency exchange.
While the European Union might not entirely be a favorite fan of cryptocurrencies, some nations however are paying attention to what the industry has to offer. Aside from Europe, a North American country El Salvador has adopted Bitcoin as a legal tender. This is the first country to do so, generating widespread reactions.