Portugal

Blockchain is fueling this emerging tech hub in Portugal: Madeira Blockchain 2023

The Madeira Blockchain Conference 2023 showcased startups exploring blockchain solutions for real-world problems across different industries.

The Madeira archipelago in Portugal is witnessing the birth of a startup hub focused on emerging technologies, such as blockchain and artificial intelligence.

Rogerio Gouveia, finance secretary of Madeira’s regional government, says the technology sector represents approximately 30% of the island’s businesses – a considerable increase for a traditionally tourism-driven economy.

The local tech community is behind the Madeira Blockchain Conference, a two-day event to promote startup networking and discussions about how blockchain can be used to solve real-world problems.

Game studios quietly integrate blockchain without the buzzword

Blockchain technology is facing backlash from players and gaming developers, forcing some studios to avoid “buzzwords” tied with Web3.

Cointelegraph was on the ground during the second edition of the Madeira Blockchain 2023, held between Nov. 30 and Dec. 1. The event explored regional Web3 developments, as well as how the Portuguese islands are looking for startups and tech talent to grow their economy in the digital age.

During a roundtable discussion at the conference, gaming studios working on blockchain features discussed the challenges associated with integrating the technology into games, including getting acceptance from developers, players and publishers.

Redcatpig is a Web3 game development studio, but the firm has run into obstacles in integrating the technology into its pipeline. “One of the toughest challenges I faced was communicating with my internal team to help them understand that this [blockchain] technology can greatly benefit gamers and enhance games,” noted Marco Bettencourt, the company’s CEO.

Madeira seeks to boost economy with startups, innovative payment system

The Madeira Blockchain 2023 conference showcased the region’s efforts to become an emerging technology hub in the Atlantic.

An archipelago in the middle of the Atlantic is seeking startups and tech talents to boost its economic growth.

Portugal’s Madeira archipelago has been praised for its natural beauty, but an aging population and pressing need for a more diversified economy prompted its local government to explore emerging technologies, such as blockchain.

According to Rogerio Gouveia, finance secretary of the regional government of Madeira, emerging-technology companies make up nearly 30% of businesses in Madeira’s free trade zone, a special economic area that offers tax benefits to companies, including one of the lowest corporate tax rates in the European Union and capital gains tax exemption for eligible firms.

“For companies aiming to establish a presence in the region, the foremost tax incentive is found in the Madeira free zone or the International Business Center.

*Portugal’s Madeira Island. Source: David Pogue/Pixabay*

One of the companies behind Madeira’s Web3 ecosystem is Yacooba Labs, a software development company using blockchain technology for ticketing solutions, addressing issues like overpriced secondary markets and fraud on tickets.

In addition, Madeira’s tax incentives are associated with other initiatives aimed at shifting the region’s focus from tourism to a technology-based economy, including an emphasis on information technology education in local schools.

Crypto hits the main stage at Web Summit in front of record crowds

Web Summit attracted over 71,000 attendees to Lisbon for the renowned technology summit, with cryptocurrency and blockchain taking a more central role in 2022.

Portugal’s capital city of Lisbon has established itself as the spiritual home of one of the world’s largest technology events. Web Summit has called the Altice Arena home since 2016 and attracted a staggering 71,000 people in the latest edition of the conference.

The effect of the event on the city was palpable. An estimated 540,000 people call Portugal’s captivating, hilly capital home and the influx of attendees from around the globe made for a busy week on its smaller cobbled streets and busier roads.

*The Ponte 25 de Abril bridge, connecting Lisbon to the municipality of Almada to the south.*

It is not surprising that the event is a focal point for the city, which continues to establish itself as a tech hub in Europe. Web Summit continues to play a role to that end, with Lisbon rated as an Alpha-level global city by the Globalization and World Cities Research Network.

Global industry leaders from a wide range of sectors were joined by prominent politicians, celebrities, actors and sportspeople that are at the intersection of tech and their respective spheres of influence. Ukraine’s First Lady Olena Zelenska delivered a keynote speech on opening night as the country continues to battle against Russia’s invasion.

*Ukraine’s First Lady Olena Zelenska speaks during the opening night of Web Summit 2022. Credit: Jose Val Bal.*

The cryptocurrency space was also top of mind on opening night as Binance founder and CEO Changpeng “CZ” Zhao brought the ecosystem to the fore in front of a packed house at the Altice Arena.

CZ unpacked Binance’s $500 billion investment into Twitter, his long-term view of the growing value of cryptocurrencies and the growth of blockchain-powered Web3 capabilities. It was the first time a figure from the crypto space spoke during the event’s opening ceremony, signaling cryptocurrency and blockchain’s growing influence in the global technology ecosystem.

*Cointelegraph’s Gareth Jenkinson alongside Binance CEO Changpeng ‘CZ’ Zhao at a community meet-up in Lisbon.*

A dedicated Crypto section of the Web Summit app guided attendees to the various stages around the expansive Altice Arena grounds, with the stadium and five massive marquees housing exhibitors and presentations from the world’s foremost technology companies and emerging start-ups.

Some of the most prominent projects from the cryptocurrency and Web3 space were in attendance. Yuga Labs CEO Nicole Muniz was on hand to give an inside look at the explosion in popularity of the Bored Ape Yacht Club on the mainstage inside the Altice Arena:

“What we’ve done with BAYC and then later with CryptoPunks and MeeBits, is giving commercial IP rights so that exclusive ownership is something unique to this space that empowers consumers to turn into owners, which is a paradigm shift.”

Cointelegraph also took the stage alongside another prominent metaverse platform as chief operations officer and co-founder Sebastien Borget delved into the history and future of The Sandbox in a wide-ranging conversation on the Content Makers stage.

*The Sandbox COO and co-founder Sebastien Borget on stage with Cointelegraph’s Gareth Jenkinson at Web Summit 2022.*

Devin Finzer, CEO and co-founder of OpenSea, the world’s largest nonfungible token (NFT) marketplace, also weighed in on the popularity of NFTs and the importance of their influence on creator economies. Finzer stressed that NFTs are a generic tool attracting a different market segment away from people interested in traditional cryptocurrencies:

“These are people who are excited about art, collectibles and engaging with creators. NFTs, particularly in the creator economy, allow for creators to create digital items that can immediately be monetized and connected with a fan.”

Web3 and NFTs have already become well-ingrained in the world of sports. Cointelegraph sat down for a one-on-one interview with Jorge Urrutia del Pozo, Dapper Labs’ vice president of Football, to unpack their involvement with Spain’s LaLiga and the recently launched Golazos video collectible platform.

Having built the hugely popular NBA Top Shots platform, which produces NFTs of video highlights from America’s top basketball league, Dapper Labs is looking to drive further adoption of blockchain-powered Web3 collectibles through the world’s most loved sport:

“It is a really interesting opportunity for us to onboard tens of millions of people onto blockchain. That’s the way we see sports in general and football in particular. There is massive reach and the intensity of the fandom — it’s a big opportunity.”

Another major player bridging blockchain technology and sport featured prominently at Web Summit. Socios.com CEO Alexandre Dreyfus took to the main stage inside the Altice Arena alongside former Italian footballer Alessandro Del Piero to unpack blockchain’s influence on fandom in modern sports.

*Socios.com and Chilliz CEO Alexandre Dreyfus and Cointelegraph’s Gareth Jenkinson inside the speakers lounge at Web Summit 2022*.

Cointelegraph caught up with Dreyfus after the panel discussion, who highlighted the main reason behind Socios’ creation of fan-powered tokens ecosystems to bring together teams and their supporters:

“The question was, what can you create that is both valuable for a fan and scalable for a team? We think two things matter for a fan. One, being recognised, and two, having a voice. That recognition, that social status, we thought we could power with tokens.”

Web3 gaming was another topic of interest on the Content Makers stage. Cointelegraph moderated another panel featuring Bozena Rezab of Gamee and William Quigley of WAX, who explored the promise and the difficulty of building Web3 games built on play-to-earn mechanics.

*Gamee co-founder & CEO Bozena Rezab, WAX co-founder William Quigley and Cointelegraph’s Gareth Jenkinson during their panel, “Building a games company with a Web3 mindset.”*

Rezab stressed that developers or studios building Web3 games should be more focused on creating good experiences and driving value and avoid adopting blockchain technology for novelty’s sake. The Gamee co-founder highlighted the importance of thinking about the distribution of value and how to best use the technology:

“It should not be tech-first thinking like ‘this is a cool technology and we’re going to use it.’ It’s more about how I will use this to make value and create something people are excited about.”

Web Summit also provided the platform for projects to announce new offerings. Interlay used the conference to announce the launch of a suite of decentralized applications (DApps) to power Bitcoin (BTC). Decentralized finance (DeFi) offerings allowing users to lend, trade, borrow against and earn yield on BTC holdings.

Cointelegraph’s editor-in-chief Kristina Lucrezia Cornèr hosted a number of panel discussions focused on the emergence of Web3 tech hubs around the world as well as a round table discussion on how to pitch startups and projects for coverage to top-tier journalists.

*Cointelegraph’s editor-in-chief Kristina Lucrezia Cornèr on-stage at Web Summit in Lisbon.*

Cointelegraph CEO Wes Kaplan also hit the stage to moderate a discussion around monetizing media and how news companies grapple with this complex topic.

Web Summit well and truly brings the world of tech together for one of the biggest events on the global calendar. 2022’s conference proved that the cryptocurrency and blockchain ecosystem has established itself as a growing player in a space dominated by the likes of Google and Apple and will continue to do so as Web3 adoption gathers speed.

The Madeira Bitcoin adoption experiment takes flight

An update on the Bitcoin rollout on the Portuguese archipelago of Madeira, which according to entrepreneur Jeff Booth is “a bigger Bitcoin Beach but in the EU.”

This spring, the Madeiran archipelago “adopted” Bitcoin (BTC). Madeira’s President, Miguel Albuquerque, was invited onto the stage at Bitcoin Miami 2022 by Jan3 CEO Samson Mow to announce the promise.

The president announced, “I believe in the future, and I believe in Bitcoin.” Days prior, Albuquerque was breaking bread with Michael Saylor, executive chairman of MicroStrategy, at his luxury villa. Albuquerque was “orange-pilled” by one of the world’s wealthiest Bitcoin hodlers.

Nonetheless, as Cointelegraph later reported, the island of Madeira was not adopting but, in fact, “embracing” Bitcoin. The European Union governs the Portuguese islands, therefore, they cannot legally adopt Bitcoin as a legal tender. Plus, regulatory hurdles and reliance on EU subsidies and energy pose a challenge to outright Bitcoin adoption.

*Author Jeff Booth (left) and podcaster Daniel Prince (right). Source: Youtube*

So Cointelegraph caught up with André Loja, the Madeiran entrepreneur and driving force behind the island’s Bitcoin strategy, following his appearance on stage at Bitcoin Amsterdam 2022.

Taking advice from F.R.E.E Madeira

Over the past six months, Loja has founded The Regional Forum of Economic Education, or F.R.E.E Madeira, alongside Bitcoin big-hitters including Bitcoin author Knut Svanholm and podcaster Daniel Prince. The board’s advisers boast entrepreneur and author Jeff Booth, Fedmint CEO Obi Nwosu, as well as Mow. The group serves to ensure the president upholds his “serious commitment,” Jeff Booth explained, to making Madeira a home for the “new base layer of the new internet.”

The island now boasts a series of Bitcoin-first investments, developments and even Bitcoiner residents, as well as a steady trickle of crypto-curious people who have embarked on their first trip to the island.

Loja told Cointelegraph that while Bitcoin is at the core of economic development and investment, “Madeira is not only investing in Bitcoin, but all kinds of technologies.” For example, a center for ocean-oriented startups and an advanced medical center are under construction.

Madeira, Madeira, Portugal, Bitcoin Community

These economic activities fit under the president’s purview of adopting new technologies and working toward Madeira, shedding its reputation as uniquely a haven for older generations. Nonetheless, these developments in wider technology dwindle in comparison to the progress made in embracing the world’s largest cryptocurrency.

Following a series of talks with Bitcoin OGs, including privacy advocate Matt Odell and Unchained Capital’s Parker Lewis, Madeira has the green light to set up a Bitcoin Commons. “It’s basically a big Bitcoin-only coworking space. It’ll also be a place to park the association,” Loja explained. The Bitcoin Commons is a space for the nonprofit, F.R.E.E. Madeira, to thrive:

“We’ll have a podcast room there, we’ll do the [Bitcoin] meetups, we’ll do the education part there. We’ll also have the remittances also set up there with the ATM and so on to connect to the diaspora.”

The Madeiran diaspora sprawls across the globe. Lucinda Castro, a Madeiran lawyer on the governance board of F.R.E.E., told Cointelegraph in June that “Madeirans emigrated to Venezuela, the United States and Canada in their thousands;” inclusive of second and third-generation immigrants, there are now over one million Madeirans living in Venezuela. The use case of Bitcoin as a remittance tool for Madeirans is, therefore, compelling.

Sending money home from overseas played a part in El Salvador’s move to adopt Bitcoin as legal tender, while another small island nation, Tonga, has also been vocal in supporting Bitcoin remittance payments.

The Bitcoin Commons will also support human development with the founding of a coding academy. The academy encourages Bitcoin companies around the world to travel to Madeira to learn new skills while providing locals with a space to hone their digital skills on the island. The Bitcoin Academy, as it will become known, also shines a light on the Lightning Network, the layer-2 payments network.

Will Bitcoin be the standard in Madeira?

As things stand, Bitcoin believers can purchase property, invest and mingle with the budding Bitcoin community on the island, Loja explained. On stage at Bitcoin Amsterdam 2022, Jeff Booth announced his intent to invest in the island, adding, “an island such as Madeira can compete globally and can be the new Silicon Valley.”

However, in order to facilitate payment in Bitcoin, investors should enlist the help of a third-party intermediary, such as Archipelago Investments. Bitcoin merchant adoption is slowly spreading across the island, but much like the mainland, it’s a challenge to live on a Bitcoin standard. Across the Atlantic in Lisbon, there’s a thriving Bitcoin community, but very few merchants accept Bitcoin as a means of exchange.

The panel in Amsterdam was frank in response to questions regarding merchant Bitcoin acceptance. The team at F.R.E.E. is set on guiding the president and the administration into the new Bitcoin era. Ultimately, the autonomous region must roll out Bitcoin adoption without burning bridges with the EU on which Madeira remains heavily dependent. Merchant adoption will come, however, and “that’s what the [Bitcoin] plebs are for,” Svanholm said.

Just like mainland Portugal, Madeira’s first language is Portuguese, and Portuguese business resources are growing. Nico Laamanen, a co-founder of the Konsensus Network, established business operations on the island as part of his mission to “make Bitcoin knowledge accessible to everyone, in every country, in every language.” Naturally one of their priorities is translating books into Portuguese:

“Madeira is great for remote workers which overlaps with many bitcoiners myself included. The tax regime, friendly environment and Bitcoin curiosity are just big bonuses.”

The Looking Glass Education, backed by F.R.E.E. adviser Greg Foss, is another sound money educational resource to support Madeira.

When pressed on whether Madeira is effectively becoming a European hub for Bitcoin development, Loja joked, “that’s the idea.” Notwithstanding headwinds posed by Portugal jockeying to tax crypto gains, the Madeira initiative should put the island firmly on the map for Bitcoin adoption.

Finally, Bitcoin filmmakers PlebMusic and Cinemuck shot F.R.E.E.’s initial meetings with policymakers and politicians on the island and showed the trailer at Bitcoin Amsterdam 2022. The full documentary will screen by December 2022 and will likely equip the island with another Bitcoin-friendly marketing tool.

Laamanen concluded, “I think Madeira will become a hotspot for bitcoin entrepreneurs and users in Europe and I want to be a part if it.”

The crypto industry fights regulators in the courts: Law Decoded, Oct. 10–17

Grayscale and Ripple against the SEC, Coin Center versus the Treasury — it’s a hot season in the U.S. courts.

Perhaps one of the most captivating signs of the industry’s maturity is the increasing amount of court cases in which crypto companies fight back against perceived regulatory abuses. Last week saw some major advancements in that direction.

Digital asset manager Grayscale has filed its opening brief against the United States Securities Exchange Commission to challenge its decision denying Grayscale’s application to convert the Grayscale Bitcoin Trust (GBTC) to a spot Bitcoin exchange-traded fund (ETF). According to Grayscale, the SEC must submit its brief by Nov. 9.

A U.S.-based crypto policy advocacy group, Coin Center has followed through with its intention to take the Treasury Department’s Office of Foreign Asset Control, or OFAC, to court over sanctioning cryptocurrency mixer Tornado Cash. Lawyers for Coin Center as well as crypto investor David Hoffman, an anonymous human-rights advocate known only as John Doe, and software developer Patrick O’Sullivan filed a joint complaint against the OFAC, Treasury Secretary Janet Yellen and OFAC Director Andrea Gacki. The complaint alleged that sanctioning Tornado Cash was “unprecedented and unlawful,” in part, due to privacy concerns over crypto transactions.

Meanwhile, Ripple CEO Brad Garlinghouse revealed that he expects the long-drawn-out battle between Ripple and the SEC to end in the first half of 2023. “Federal judges work at their own pace,” he stated, before adding, “Optimistically, we’re talking about three to four months. Pessimistically, it could be longer than that.” The fintech boss said that Ripple would consider a settlement with the SEC, providing that XRP is not classified as a security.

MiCA passes through the European Parliament Committee

Members of the European Parliament Committee passed the key crypto framework policy, Markets in Crypto-Assets (MiCA), in a vote of 28 in favor and one against, with a final vote expected in a full European Parliament session soon. Following the MiCA vote, members of the EU Parliament also overwhelmingly approved a provisional deal on the Transfer of Funds Regulation, legislation aimed at having compliance standards for crypto assets in an effort to crack down on money laundering. The two regulatory frameworks, if given final approval, would apply to member states with the EU but potentially serve as an example for global lawmakers on crypto. Following all the procedures and checks, the crypto policies could go into effect starting in 2024.

OECD’s framework to combat international tax evasion using digital assets

The Organisation for Economic Cooperation and Development (OECD) has published a framework aimed at helping tax authorities achieve greater visibility on crypto transactions and the users behind them. The crypto tax framework proposes automatically exchanging information on crypto transactions between jurisdictions annually, given a rise in the number of unregulated exchanges and wallet providers. If approved, the framework would likely facilitate information sharing on crypto transactions between the OECD’s 38 member countries — a list that includes the United States, Japan, South Korea and many nations within Europe.

Portugal proposes 28% tax on crypto profits

Long considered a cryptocurrency tax haven, Portugal’s government has proposed a 28% tax on capital gains from cryptocurrencies held for less than a year. The government’s 2023 State Budget document featured a short section addressing the taxation of cryptocurrencies, which, to date, have been untouched by the Portuguese tax authorities, given that digital assets were not recognized as legal tender.

A proposed income tax from operations involving cryptocurrencies through activities such as mining, trading and capital gains was put forward in the 444-page document. The State Budget also proposes a 4% taxation fee for free transfers of cryptocurrencies in instances of inheritance, as well as stamp duties on commissions charged by intermediaries involved in the cryptocurrency sector.

Portugal proposes 28% tax on annual crypto trading profits next year

The cryptocurrency tax haven could see taxes levied on profits realized from cryptocurrency trading or capital gains within a year of their acquisition.

Long considered a cryptocurrency tax haven , Portugal’s government has proposed a 28% tax on capital gains from cryptocurrencies held for less than a year.

The 2023 State Budget document published on Oct. 10 featured a short section addressing the taxation of cryptocurrencies, which to date have been untouched by the Portuguese tax authorities, given that digital assets were not recognized as legal tender.

The section notes that the Portuguese government intends to create a ‘broad and adequate’ tax framework aimed at cryptocurrencies in terms of their taxation and classification. A proposed income tax from operations involving cryptocurrencies through activities such as mining or trading, as well as capital gains, was put forward in the 444-page document:

“Capital gains relating to crypto-assets held for a period of less than one year are subject to the rate of 28% (without prejudice to the aggregation option), with the capital gains referring to crypto assets held for more than 365 days exempt from taxation.”

The State Budget also proposes a 4% taxation fee of free transfers of cryptocurrencies in instances of inheritance, as well as stamp duties on commissions charged by intermediaries involved in the cryptocurrency sector.

The section concludes by noting that security and legal certainty are provided in the proposed creation of the tax regime in an effort to foster the crypto economy.

Portugal’s parliament will have the final say as to whether the proposed cryptocurrency tax changes are enforced, while the notion is not entirely new. In March 2022, Secretary of State for Tax Affairs António Mendonça Mendes laid out the rationale in a parliamentary working session for taxing cryptocurrencies given that capital gains were being realized by users.

Germany recently took a similar stance toward the taxation of cryptocurrencies. It released new guidelines in May 2022 outlining clear income tax rules for cryptocurrency and virtual assets. Individuals who sell Bitcoin (BTC) or Ether (ETH) more than a year after acquisition will not be liable for taxes on the sale if they realize a profit.

Two more lawsuits for Coinbase: Law decoded, Aug. 1–8

Both plaintiffs claim that Coinbase made fraudulent and deceptive representations regarding the company’s business.

The Coinbase drama, which started at the end of July, continues with new developments. Last week, former Coinbase Global product manager Ishan Wahi pleaded not guilty to two counts of wire fraud conspiracy and two counts of wire fraud in a Manhattan federal court. Wahi was arrested during his attempt to board a flight from the United States to India in May and accused of insider trading.

While the Wahis are central to two separate court cases, another two lawsuits appeared last week against the San-Francisco-based crypto exchange. Legal firm Bragar Eagel & Squire revealed that it would be suing Coinbase for making deceptive claims about its business practices. Pomerantz LLP has also filed a claim against the exchange, alleging that it is entitled to compensation for any losses incurred as a result of the defendant’s violations of federal securities laws.

In both complaints, plaintiffs claim that Coinbase made fraudulent and deceptive representations regarding the company’s business, operations and compliance efforts between April 14, 2021 and July 26, 2022. Coinbase reportedly refused to disclose that it permitted U.S. citizens to trade digital assets that required Securities and Exchange Commission (SEC) registration as securities despite its knowledge and complacency.

11 individuals are charged over $300M crypto ‘pyramid scheme’

A hot season for enforcers, indeed — SEC has charged 11 individuals for their alleged role in creating t “fraudulent crypto pyramid scheme” platform Forsage. The charges were laid in a United States District Court in Illinois, with the SEC alleging that the founders and promoters of the platform used the “fraudulent crypto pyramid and Ponzi scheme” to raise more than $300 million from “millions of retail investors worldwide.”

The new crypto bill could extend CFTC’s regulatory powers

While both the Lummis-Gillibrand crypto bill and several versions of stablecoin legislation seem to be delayed until fall, United States Senate Agriculture Committee chair Debbie Stabenow and ranking member John Boozman introduced the Digital Commodities Consumer Protection Act. The bill mandated the registration of a broad spectrum of market players by the CFTC and was met with wide approval within the crypto community.

Banks are shutting down the crypto exchanges’ accounts in Portugal

Several large banks in Portugal have reportedly begun closing the accounts of cryptocurrency exchanges due to “risk management” concerns. There are at least four domestic cryptocurrency exchanges that have seen their accounts shut, including CriptoLoja, which was the first one to obtain a license to operate in the country. The closure of these accounts is seen as a blow to Portugal’s crypto-friendly approach, as authorities had previously rejected two tax proposals that might have been applied to investors making money from cryptocurrencies.

Portuguese banks shutting crypto accounts citing risk management concerns

The Bank of Portugal has licensed all of the exchanges that have had their accounts closed, including Criptoloja, Mind The Coin and Luso Digital Assets.

Several large banks in Portugal have reportedly begun closing the accounts of cryptocurrency exchanges due to “risk management” concerns, suggesting a shift in Portugal’s pro-crypto position. The country’s central bank appears to have given the financial institutions the green light to take action.

Several of Portugal’s top banks recently closed the accounts of CriptoLoja, the country’s first cryptocurrency exchange to obtain a license to operate. According to a Bloomberg report, at least four domestic cryptocurrency exchanges have seen their accounts shut by BCP (Banco Comercial Portugues), Santander Bank, Caixa Geral de Depósitos, BiG and Abanca.

All the exchanges are licensed by the Bank of Portugal, which regulates domestic cryptocurrency trading platforms. Three of the exchanges were identified as Criptoloja, Mind The Coin and Luso Digital Assets, with a third requesting that their name not be published by media platforms. The head of the Bank of Portugal, Mário Centeno, was quoted as saying that banks had complete freedom to do anything they wanted, but he promised to keep a close eye on the situation.

The Bank of Portugal’s oversight of exchanges includes ensuring that platforms combat money laundering and the financing of terrorism, and work to prevent fraud. BCP told Bloomberg that its primary duty was to inform competent authorities if it detects “suspicious transactions,” which may lead to the termination of banking relationships with certain companies.

Cointelegraph reached out to CryptoLoja, one of the affected crypto exchanges, for comment but did not receive a response as of press time. This article will be updated when a response is received.

The closure of these accounts is seen as a blow to Portugal’s crypto-friendly approach, as authorities had previously rejected two tax proposals that might have been applied to investors making money from cryptocurrencies. However, the government and financial sector have recently shown an increased interest in regulating cryptocurrency in line with other European Union nations.

Crypto exchanges have had trouble obtaining banking services worldwide due to their perceived risk. As reported by Cointelegraph, United States Senator Elizabeth Warren is reportedly proposing a bill that would effectively ban bank-provided cryptocurrency services.

The Iberian nation has drawn Bitcoin entrepreneurs from around Europe, particularly Ukrainians fleeing the crisis in their home country. Around 27,000 Ukrainians lived in the Iberian nation before the military conflict with Russia, but their number has risen to over 52,000, making them the second-largest foreign population after Brazilians.