In another win for the adoption of blockchain technology and cryptocurrency, the Central Bank of Portugal (Banco de Portugal) has officially announced that it will start approving licenses for cryptocurrency exchanges to operate within the country. Two have already been awarded.
This is the first time that crypto-asset exchanges have been able to operate within the country since a new law on blockchain technology was passed earlier this year.
Criptoloja and the mind Currency They are currently the only officially licensed virtual asset service providers listed on the bank’s website. However there are many that are sure to follow suit. The decision has been a long time coming as Criptoloja initially attempted to score in September 2020.
From Official statement of the Central Band of Portugal, with these licenses, Criptoloja and Mind the Currency They 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;
- Preservation and/or management of virtual assets or tools that allow control, ownership, storage or transfer of such assets, including encrypted private keys.
The people of Portugal can now be sure that their crypto assets are transferred and can be held safely on these open exchanges. Having a license issued by a central bank shows Portugal’s confidence in crypto assets and its continued adoption of the technology.
Countries around the world preparing for cryptocurrency?
Portugal is just one of the many countries in Europe that allow cryptocurrency trading within its borders. Just last month The Malta Financial Services Authority (MSFA) has issued Xcoins, a major cryptocurrency exchange, is a Class 3 virtual financial asset license. This is the second license granted by the MFSA with the first Crypto.com.
Not only are countries in Europe moving quickly to adopt both blockchain and crypto technology, but El Salvador has also recently been the first Adoption of Bitcoin as a legal currency. Many other South American countries have been quick to jump on the growing crypto revolution. See related reading below for a follow-up to the recent adoption movement in South America.
Only time will tell which countries will wake up and join the next blockchain revolution. But with more and more countries jumping on the blockchain train, others will be keen to follow suit or be quickly left behind. Blockchain technology is still very young, so as more applications provided by blockchain become available, more countries will allow exchanges to operate within their borders to allow their citizens to reap the benefits of decentralized networks.
Featured Photo by Pedro Santos on Unsplash