Portugal, a country known for its relatively relaxed stance on cryptocurrencies, has seen its banks take varying approaches to handling crypto transactions.
As a crypto enthusiast, I have recently conducted research on private Telegram groups to gain insights into the experiences of users dealing with crypto transactions in Portugal.
In this article, I will share my findings on the challenges faced by users when interacting with Portuguese banks, the uncertainties surrounding crypto taxation, and the strategies adopted by crypto enthusiasts to navigate these issues.
Experiences with Portuguese Banks
Through my research in private Telegram groups, I discovered that Portuguese banks such as Millennium, Santander, Novobanco, Credit Agricola, and Openbank have varying stances on accepting large crypto transfers.
Some users reported successful transfers of up to €10,000 or more in multiple payments without any issues. However, others faced account closures or limitations, often without clear explanations from the banks.
In many cases, banks inquired about the source of funds, prompting users to provide proof from reputable crypto exchanges like Kraken.
However, this documentation did not always guarantee a smooth experience, as banks seemed to maintain internal policies and limits on crypto transactions that they did not disclose publicly.
My research indicates that individual experiences may not apply universally, as banks appear to implement different policies for different customers.
key takeaways from the article:
- Portuguese banks have varying stances on accepting large crypto transfers. Some users reported successful transfers without issues, while others faced account closures or limitations.
- Banks may inquire about the source of funds, and providing documentation from reputable crypto exchanges like Kraken may not always guarantee a smooth experience.
- Taxation of crypto transactions in Portugal remains complex and unclear, with various interpretations of the laws.
Personal Cases with Crypto Transactions in Portuguese Banks
|Millennium, Credit Agricola, and Openbank||Multiple users reported successful crypto transfers, often breaking large sums into smaller payments and providing proof of funds from Kraken when asked.|
|Novobanco||One user reported a declined transfer of €15,000, implying they may not accept large crypto transactions.|
|Santander||One user consulted a manager and was advised to use SEPA for a €50,000 – €100,000 crypto withdrawal. Another user was warned that their next crypto withdrawal would be their last, and their account was eventually closed after six months.|
Millennium, Credit Agricola, and Openbank
One user reported that these banks accepted large amounts from them and others in the chat, allowing them to use the funds without issues for months. They mentioned breaking large sums into smaller payments and providing proof of funds from Kraken when asked about the source.
Another user had to deal with compliance checks for one month and a half with Millennium Bank, which accepted the transaction after checking the source of funds and crypto wallet movements.
“In Novo, I got 20k eur transfer from crypto-exchange at a time. But it doesn’t guarantee anything at all. Local banks close accounts even for local companies with a crypto license.” – Anonymous user
Another user stated that Novobanco accepted €5,000 from Kraken, but declined a transfer of €15,000, implying they don’t accept large crypto transactions. This highlights the differing experiences users may have with the same banks.
A user consulted a manager at Santander about withdrawing €50,000 – €100,000 worth of crypto from Binance. The manager stated that if the transaction were through SEPA, the bank wouldn’t have any issues.
One user shared their experience with Santander, where they were warned that their next crypto withdrawal would be their last. This person did not proceed with the withdrawal, but their account was still closed after six months. In contrast, they reported successful transfers of up to €20,000 at a time with Novobanco.
Tax Implications and Uncertainties
While analyzing private Telegram groups, I found that the taxation of crypto transactions in Portugal remains a complex and unclear topic. The current laws can be interpreted in various ways, leaving users uncertain about specific scenarios, such as whether the tax-free period of 365 days resets when exiting from a cryptocurrency to a stablecoin and then to fiat.
While traditional banks continue to wrestle with their approach to cryptocurrencies, some alternatives have emerged that cater specifically to the needs of crypto users.
Crypto-friendly banks and financial institutions, such as Revolut, Nexo, and Wirex, offer services tailored to the needs of those dealing with digital assets. These services often include the ability to seamlessly convert between cryptocurrencies and fiat currencies, as well as features like crypto debit cards for everyday spending.
However, it’s worth noting that these alternatives may also have their limitations and challenges.
For example, one user reported having their Revolut account temporarily blocked after depositing small amounts from a Binance card, only to have it unblocked after providing tax declaration documents. It’s essential to understand the policies and requirements of these alternative financial institutions as well.
Based on my research in private Telegram groups, the experiences with Portuguese banks regarding crypto transactions vary significantly among users.
While some banks may be more accommodating, it is essential to understand their individual policies and be prepared for potential limitations or account closures.
When withdrawing funds and facing questions from the bank, users may receive a check with the account balance, and the account may be closed.
In some cases, funds may not be credited to the account, even if all necessary documents are provided. In such situations, the bank may return the funds to the sender.
As for the taxation of crypto transactions, the current landscape remains unclear, and it is crucial to stay informed about any changes in regulations. It is recommended that individuals and businesses involved in cryptocurrency transactions consult with a tax professional to ensure compliance with Portugal’s evolving legislation.
By actively participating in private Telegram groups and other online communities, crypto enthusiasts can stay up-to-date on the latest developments and learn from the experiences of others in the field.
Frequently Asked Questions
Are there any crypto-friendly banks in Portugal?
Based on personal experiences, some banks in Portugal, such as Millennium, Santander, Novobanco, Credit Agricola, and Openbank, have been known to accept large crypto transfers.
However, experiences with these banks vary among users.
Can I transfer large amounts of crypto without any issues?
Some users have successfully transferred amounts up to €10,000 or more in multiple payments without any issues, while others have faced account closures or limitations.
What should I do if the bank asks for the source of my funds?
Providing proof from a crypto exchange like Kraken can help justify the transactions.
However, this doesn’t guarantee a hassle-free experience, as banks may still have their internal policies and limits on crypto transactions.
What if the bank closes my account after a crypto transaction?
The bank may issue a check with your account balance and close the account. You can cash the check or deposit it into another bank account.
During this period, you’ll only have access to your funds through the branch, as the bank may close your cards and stop transfers.
There’s a possibility that the funds may not even be credited to your account, even if you provide all necessary documents.
How does taxation work for crypto transactions in Portugal?
Taxation of crypto transactions is still a complex and unclear topic in Portugal. The current laws can be interpreted in various ways, and there’s no clear answer on specific scenarios, such as whether the tax-free period of 365 days resets when exiting from a cryptocurrency to a stablecoin and then to fiat.
What can I do to ensure a smooth crypto transaction with a Portuguese bank?
While some banks may be more accommodating, it’s essential to understand their individual policies and be prepared for potential limitations or account closures.
Providing documentation from a reputable crypto exchange like Kraken and splitting large amounts into smaller payments may also help ensure a smoother experience.