Banco de Portugal stated Thursday that Bison Bank, a Portuguese financial services company, has been granted a license to function as a virtual asset service provider (VASP), allowing it to provide crypto custody and trading services in Portugal.
As per Portuguese news source Sapo, Bison Bank will establish a unique business branch called Bison Digital Assets that will function as a virtual currency exchange.
The subsidiary is the first bank-owned firm in Portugal to be officially approved to provide custodial and cryptocurrency full range of financial services.
Personal and organizational clients can more freely use Bison Bank’s asset management, commercial banking, and investment management services, as stated on its website. It is owned by a Chinese private equity firm based in Hong Kong.
Portugal Furthers Its Reputation As Crypto-Friendly Haven
Utrust, which is an on-chain blockchain transactions firm also based on Portugal, received the nation’s first comprehensive all-categories VASP license in March.
In addition, Criptoloja and Mind The Coin, which are also both local cryptocurrency exchanges, were granted VASP licenses in June. Luso Digital Assets also received a license from the bank to operate as a cryptocurrency exchange.
Portugal has traditionally been regarded as a crypto-friendly economy and a tax shelter for crypto. And since bitcoin is considered a means of payment instead of as an asset, there have been no investment income or personal income taxes over it unless it is a person’s sole income source in Portugal.
The Portuguese government also detailed plans to develop Technological Free Zones in April 2020, which are regions where firms can sample products and solutions, again with the government stating that blockchain technology would be tested as an element of its technological reform program.
The Portuguese government stated in October 2021 that it would form a working group involving government and non – governmental enterprises, as well as experts, to build a National Blockchain Strategy.
The country has been looking into ways the technology could be used in the country as well as the regulatory requirements.
A draft of the strategy Is expected to be revealed by the end of this month, with the final version following in June 2022.
What Does This Mean For The Cryptocurrency Industry In Portugal?
Portugal’s international reputation as a blockchain haven is further strengthened by these developments, especially in comparison to some of its geographical neighbors. Spanish laws are stricter and thus is causing a number of Spanish crypto traders to migrate across the border, or at least declare Portugal as legal residency.
Although Portuguese law does not contain any specific rules regarding the increased taxes of income from the sale of crypto assets, legal experts say the situation is more multifaceted, to the point where it is subject to debate whether token trading profit ought to be taxable in Portugal because they really do not outcome from an officially valid professional activity.
Portugal is drawing digital migrants from all around the world. These individuals frequently operate in the blockchain community and have gathered in Lisbon’s technical hub. The city has been growing increasingly significant, with such a highly appealing international corporate environment.