The Mexican government has released outlines concerning the cryptocurrency sector. The decision to determine which cryptocurrencies are allowed will be taking place by the Bank of Mexico. The Central Bank is also in charge to decide whether or not fintech companies should have an approval before they can work on cryptocurrencies.
The circular published by the Mexican government on September 10 in the official gazette embraces new legislation for the fintech sector and provisions for digital currencies.
As stated by the president of the National Banking and Securities Commission (CNBV) Bernando Gonzalez, “The fintech law is meant to regulate financial and technological institutions in Mexico, making it the first country in Latin America to establish a legal framework for this type of company,” El Universal summarized. Gonzalez also said that “the rules would apply to crowdfunding companies, online payments, and cryptocurrencies.”
The report explains that firms, who are preparing to implement transactions including cryptocurrencies ‘must request authorization from the Bank of Mexico so that they can use those technologies associated with any of the virtual assets’ permitted by the bank.
La Verdad detailed: “The Bank of Mexico (Banxico) reported that as of this Tuesday, September 11, financial institutions that are interested in offering ‘financial technology services with virtual currencies and foreign currency operations’ may send their request specifying the commissions that will be charged to the public.”
The media has mentioned, “In other words, a green light is given for the exchange of cryptocurrencies for cash.”
On the other hand, as extracted by Televisa, Gonzalez elaborated that these rules “opens up the possibility for small and medium-sized companies to obtain financing from the public through collective funding platforms…without having to go to a traditional credit institution…the rates offered today are much lower than in other financial intermediaries,”. Additionally, the announcement continued to inform that “The authority expects 73 fintech companies to apply for registration.”
The circular specifically explains that companies can only operate the digital currencies if the Bank of Mexico decides it is appropriate. Nonetheless, there has been no announcement from the Central Bank regarding which cryptocurrencies are legal or not.
Although the fintech law does not describe digital currencies as virtual assets, Gonzales repeated that “the Bank of Mexico will establish which ones may be used in Mexico and which fintech or banks may carry out transactions with them,” as summarized by El Universal. As stated by CriptoNoticias: “Banxico will determine what type of crypto assets…can be traded through this class of operators. The institution will be responsible for granting or denying the corresponding permits. Companies must comply fully with the country’s legislative body in order to obtain this permit.”
The aforementioned fintech provisions ‘indirectly affect the management of virtual assets,’ the public release informed, and also an extension of the general rules for digital currencies are presumed to be published before March 10, next year.
Author: Berna Bayindir
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