Central Bank Of Portugal Approves Licenses For Crypto Exchange

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

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

Criptoloja and Mind the Coin are currently the only virtual assets service providers officially licensed and listed on the bank’s website. However many more are sure to follow suit. The decision has been a long time coming as Criptoloja initially attempted to register in Sept 2020.

From the Central Band of Portugal’s official announcement, 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;
• transfer services of virtual assets;
• safekeeping and/or administration of virtual assets or instruments that enable the control, ownership, storage or transfer of such assets, including private encrypted keys.

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

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Countries Around The World Warming Up To Cryptocurrencies?

Portugal is just one of many countries in Europe allowing cryptocurrencies to be traded within its borders. Just last month Malta Financial Services Authority (MSFA) issued Xcoins, a major cryptocurrency exchange, a Class 3 Virtual Financial Asset License. This is the second license that the MFSA has given out with the first being Crypto.com.

Not only are countries in Europe quickly moving to adopt both blockchain and crypto technology, but El Salvador was also recently the first country to adopt bitcoin as legal tender. Many other South American countries have been quick to also jump on the growing crypto revolution. See our related reading below for a run down of 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 what countries will wake up and join to the blockchain revolution next. But as more an more countries jump on the blockchain train, others will be sure to follow suit or quickly get left behind. Blockchain technology is still very young so as more applications that the blockchain has become available, more countries will allow exchanges to operate within their borders so as to let their citizens reap the benefits of decentralized networks.

Featured Photo by Pedro Santos on Unsplash