Deco says Portugal's banks have “no known legal basis” to block bitcoin transactions

Portugal's consumer watchdog, Deco, has claimed that the country’s banks have “no known legal basis” to block bitcoin-related transactions.

Banco Santander Totta, is stopping bitcoin-related transactions and has claimed that cryptocurrency exchanges are non-regulated financial products.

The bank is refusing to process transactions to and from exchanges such as Coinbase and Bitstamp. In response, some clients have changed banks, while others decided to complain to Deco which has made it clear to Santander Totta that there is, “no known legal basis” to support its action, stating, “Santander’s barriers on international interbank transfers to bank accounts associated with cryptocurrency sites are not supported by any known legal basis.”

The consumer protection organisation said that the Bank of Portugal already has sent it a notice stating that bitcoin has no legal framework in Portugal and therefore, bitcoin-related activities are outside its supervisory remit.

The Bank of Portugal has warned investors against cryptocurrency investments, considering them 'risky.'

Santander Totta issued an update on its stance that has led some clients to change banks. The bank said it had not taken steps against cryptocurrencies per se, but that it was overseeing its clients’ activities to ensure the bank complied with “applicable legal regulations.”

Comments  

0 #4 Plain Speaking 2018-01-22 08:38

Quoting Peter Booker:

I admire Chippen´s confidence. But my understanding is that cryptocurrency transactions rely on the internet. Who controls the internet?

Nobody really. Maybe that is the problem?

0 #3 Peter Booker 2018-01-21 10:19

I admire Chippen´s confidence. But my understanding is that cryptocurrency transactions rely on the internet. Who controls the internet?

-2 #2 Crippen 2018-01-20 23:55

it should be appreciated that someone - even if "it is an organisation from a sector with a bad track record - makes a stand, and simply doesn't want to be part of possible criminal transactions/offences which is what for instance Bitcoin is associated with."

The biggest criminals and money launderers, are the banks! Example, Deutsch bank was recently on the verge of collapse, for money laundering, and find by usa gov 5 billion euros!
Another example, Recently, about 4 yeas ago in cyprus, banks without warning locked there doors, switched off all atms, and robbed, confiscated 40% of the savings. Bitcoin is cheaper, safer, and is more valuable than gold! Bitcoin is THE DEATH OF Banks! It Cannot be stopped or controled by goverments, it is here to stay. Get used to it! LOL

+4 #1 robert1 2018-01-20 01:10

Banco SantanderTotta is a bank that has a low tolerance for risk. This has suited them well during the crisis. It accepts a lower charge/margin on services in case the commercial risk is low, but with less defaults the net result leads to higher returns on investment.The same is true about avoiding costly and time consuming legal disputes. When more and more questions are asked about moral behaviour, it should be appreciated that someone - even if it is an organisation from a sector with a bad track record - makes a stand, and simply doesn't want to be part of possible criminal transactions/offences which is what for instance Bitcoin is associated with.
The initial response to crypocurrencies by Santander is as such understandable for an organisation that has a long term vision about where it wants to be in the future. With Santander it is all about risk management. This also means that they decline loans etc more often than others. One could conclude that this is a bank for when the sunshines...rain is not budgeted for. Nevertheless it suits them well.

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