Technology

Central Bank of Portugal approves licenses for Crypto Exchange

In another victory for the adoption of blockchain technology and cryptocurrencies, the Central Bank of Portugal (Banco de Portugal) has officially announced that it will start approving licenses for crypto exchanges to operate in the country. Two have already been granted.

This is the first time that crypto asset exchanges have been able to operate in the country since a new law on blockchain technology was passed earlier this year.

Criptoloja and Mind the Coin are currently the only officially licensed virtual asset service providers listed on the bank’s website. However, many more will certainly follow. The decision was long in coming as Criptoloja initially attempted to register in September 2020.

Since the official announcement of the central group of Portugal, with these licenses, Criptoloja and Mind the Coin are now able to:

  • exchange services between virtual assets and fiat currencies or between one or more forms of virtual assets;
  • virtual asset transfer services;
  • the custody and / or administration of assets or virtual instruments allowing the control, ownership, storage or transfer of these assets, including encrypted private keys.

The Portuguese can now be sure that their crypto assets are transferred and can be kept safe on these open exchanges. Having a license from a central bank shows Portugal’s confidence in crypto assets and continued adoption of the technology.

Related reading | Factors stack in favor of bullish Bitcoin fractal, despite latest plunge

Are the countries of the world warming to cryptocurrencies?

Portugal is just one of many countries in Europe that allow cryptocurrency trading within its borders. Last month, the Malta Financial Services Authority (MSFA) issued Xcoins, a major cryptocurrency exchange, a Class 3 virtual financial asset license. This is the second license granted by the MFSA, the first being Crypto.com.

Not only are European countries rapidly adopting both blockchain and crypto technology, but El Salvador was also recently the first country to adopt bitcoin as legal tender. Many other countries in South America quickly jumped on the growing crypto revolution. See our related reading below for a look at the recent adoption movement in South America.

Related reading | South American countries are interested in adopting Bitcoin: who will be next?

Only time will tell which countries will wake up and then join the blockchain revolution. But as more countries jump on the blockchain bandwagon, others will surely follow suit or be quickly left behind. Blockchain technology is still very young, so more applications than blockchain have become available, more countries will allow exchanges to operate within their borders to enable their citizens to enjoy the benefits of decentralized networks.

Featured Photo by Pedro Santos on Unsplash

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