Mexico also seeks to regulate cryptocurrencies

First it was Colombia, and then Brazil followed in his footsteps. Now it is Mexico that has decided to regulate cryptocurrencies. Through its central bank (Banxico), the Aztec country published a series of regulations not only for digital currency, but also for all Fintech.

According to El Financiero, Banxico opens a period of 60 days (from March 11 to June 5) to submit these documents for public consultation. During this time, the interested parties or participants of the sector should share their opinions on the regulation.

The new regulations establish that the Bank of Mexico is the body in charge of defining the characteristics or what virtual assets can be used by financial technology institutions. “The Bank of Mexico considers it convenient to maintain a healthy distance between these assets and the financial system, given the risks that the operation with these could entail for the users, for the institutions that operate with them and for the financial system in general,” he says.

Likewise, the Fintech law establishes that companies in the sector and credit institutions interested in carrying out operations with cryptocurrencies must request prior authorization from Banco de México.

For example, companies should describe their operating model with virtual assets, show the benefits of carrying out operations with cryptocurrencies and ensure a framework of control procedures and risk containment. “Additionally, this should not imply a significant increase in the operational or financial risks of authorized institutions or an impact on customers or end users,” he says.

On the other hand, the Central Bank has been concerned about the potential illegal use of cryptocurrencies and is seeking to minimize the risks. “Virtual assets entail a significant risk in the prevention of operations with resources of illegal origin (money laundering) and financing of terrorism, due to the ease of transferring virtual assets to different countries, as well as the absence of controls and measures of globally homogeneous prevention, “the document says.

Little by little cryptocurrencies are gaining ground in Latin America. Recently, an ATM of these digital currencies was installed near the border between Venezuela and Colombia. Similarly, at the end of last year, Argentina installed  30 similar ATMs.

Source: nmas1,financiero,banxico

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