TL;DR Breakdown
The Banco de Portugal, Portugal’s central bank, has authorized Bison Bank to provide virtual asset services (VASP) under its supervisionAccording to Sapo, Bison Bank will set up a new corporate division, Bison Digital Assets, to function as a virtual asset exchange.
The Banco de Portugal, the Portuguese government body in charge of regulating virtual asset service providers, has permitted Bison Bank to operate as the country’s first crypto bank. Bison Bank will now offer its clients a new digital asset exchange service under the supervision of the central bank.
Portuguese authority awards crypto license to Bison Bank
According to a Portuguese news outlet Sapo, Bison Bank will set up a new corporate division, Bison Digital Assets, which will act as a digital asset exchange. The services offered by the new company will be available to both institutional and retail investors.
This is a landmark decision by the Portuguese government, as it is the first time that a financial institution in Portugal has been allowed to offer crypto services. The move comes as a result of increasing demand from both retail and institutional investors for exposure to digital assets.
According to its website, Bison Bank offers wealth management, depositary, and investment banking services to individuals and institutional clients. It’s a Hong Kong-based Chinese private capital firm that acquired it. However, the bank has quickly established itself as a leading player in the country’s financial sector. The bank is headquartered in Lisbon and has a network of branches across Portugal.
Cryptocurrency regulation in Portugal
Portugal has been one of the more progressive countries when it comes to cryptocurrency regulation. In April 2021, the government created laws to establish a licensing system for cryptocurrency exchanges run by the central bank. In July, licenses were granted to the Mind The Coin and Criptoloja exchanges, which became the first two VASPs permitted to operate in the country.
In March 2021, the authority gave Utrust its first “all categories” VASP license, allowing the exchange to offer crypto to crypto swaps, transfers to wallet addresses, and custody and storage of private keys in addition to offering a fiat on-ramp. Bison Bank has also been granted an all-types license.
Portugal has long been regarded as a crypto-friendly nation and a crypto tax haven. There are no capital gains or personal income taxes on cryptocurrency unless it’s an individual’s sole income, as Portugal considers cryptocurrency a form of payment or currency, not an asset.
The Banco de Portugal will regulate bison Digital Assets in accordance with anti-money laundering and counter-terrorism financing regulations. The regulator does not provide supervision in the prudential or market conduct realms for crypto service providers.
In recent months, Portugal has been in the limelight for some of the most important cryptocurrency-related gatherings. In April 2020, the government announced plans to establish Technological Free Zones (ZLTs), locations in which companies may test products and services without fear of being sued for trademark infringement. Portugal’s cabinet announced that they are working to establish an innovation center to leverage cutting-edge technologies under the name “Digital Transitional Action Plan.”Portugal’s goal of establishing a technological-free zone would assist the country in achieving long-term development.
Portugal becomes a safe haven for European crypto trading
In October 2021, the Portuguese government announced that it was forming a group of experts with public and private sector organizations and academics to develop a national blockchain strategy. The organization has been working on how to implement the technology and address regulatory restrictions. The planned transition is expected to occur by the summer of 2022, with a final version coming out in April 2022.
