Banks and Crypto: A New Friendship?

A Shift in Perspective

Banks are starting to see crypto in a new light. After staying away for a while, they are now taking a closer look. This change is happening because of new rules in Europe, like the Markets in Crypto-Assets (MiCA) regulation. These rules make banks feel more comfortable about getting involved with crypto.

Portugal Leads the Way

In Portugal, this change is already happening. Ricardo Martins, who works at Bison Digital, says banks are starting to treat crypto like any other investment, not just something risky. He thinks digital assets can be part of a balanced investment portfolio, just like stocks or bonds. The goal is to use crypto to help people invest based on how much risk they can handle.

The Importance of a Crypto License

Getting a crypto license is a big deal for banks. It shows they are serious about following the rules and being part of the crypto world for the long term. Martins says the process was long and involved working closely with regulators. But it was worth it because it builds trust.

Portugal's Unique Tax Rule

Portugal has a special tax rule for crypto. If you hold your crypto for more than a year, you don't pay any tax. If you sell it sooner, you pay 28%. This rule encourages people to invest for the long term rather than trying to make quick profits. It also makes the market more transparent because everyone has to report their transactions.

Investor Preferences

Most of the interest from big investors is in Bitcoin and stablecoins. Bitcoin is still the most popular, with more than half of the demand. Stablecoins, like USDC, are also popular because they are regulated and safe.

The Role of Regulation

Martins says good rules are what bring banks back to the crypto table. He believes regulation is key to making the crypto world more trustworthy and attractive to big investors.