New Initiative Taken by Portugal Towards BTC. Could this Be Beneficial for Bitcoin?

2:26 pm, Mon, 21 June 21

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The utility and significance of Bitcoin seem to be increasing day by day, despite the ups and downs in its value that are noticed now and then. With El Salvador adopting BTC as legal tender and Paraguay planning the same for next month, the importance of BTC is expected to be highlighted even more with time.

According to recent reports, another new development has taken place in favor of the flagship crypto asset as the Central Bank of Portugal has officially given the first licenses to local crypto exchanges.

Portugal is a crypto-friendly country and its initiative to give license to local exchanges is an attempt to regulate BTC and its use in the country. This can indicate a positive impact on the top crypto asset.

This can also highlight the prominence of the digital asset and make it accessible to people in Portugal. If you have also been planning to invest in BTC, click on SwissBorg or Kraken (U.S. citizens) and purchase the digital asset.

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While the decision to issue licenses to local exchanges can be a game-changer, crypto enthusiasts are curious if there are any applied conditions or not. Here are a few more details on the update.

Some Details You Should Know

The purpose of issuing licenses to local crypto exchanges is to regulate the use of BTC, which is anticipated to be beneficial for the flagship crypto asset.

The Central Bank in Portugal, Banco de Portugal, has issued licenses to Criptoloja (based in Lisboa) and Mind The Coin (based in Braga). The issuing of operational licenses has happened for the first time, which has taken many by surprise.

However, the regulation planned by the Portugal Central Bank has a few limitations. According to the bank, the regulation is limited to AML/CFT purposes. It does not include other areas of business or market conduct.

The notice by Banco de Portugal stated:

Notice of the Banco de Portugal regulates…entities that intend to carry out, within Portuguese territory, activities with virtual assets subject to registration, as well as subsequent changes to the elements to be registered,”

Keeping in view the terms and conditions set by the bank, the new license extended to the crypto exchanges will omit services across exchange services between crypto assets or fiat currencies.

The license issued to the exchanges will help both companies to legally extend their services to users in the country. Criptoloja has also planned a launch in the next few weeks that will hopefully give both newly licensed crypto exchanges a chance to get ahead in a business that will eventually get more attention.

How Can it Benefit BTC Investors and Traders?

Portugal is one of the countries that are supportive of the cryptocurrency industry. The authorities have focused more on regulating the use of BTC and other digital assets, instead of banning them. This can contribute to the potential growth of the crypto asset and its significance.

Many countries in Europe and mainly Latin America have opted for the regulation of BTC. Despite the decline in BTC’s price noted earlier today, such initiatives taken by different countries across the globe can be expected to give a boost to its value.

Therefore, if you have been planning to step into the crypto space and invest in BTC then you should opt for some of the best crypto exchanges.

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