Mexico Passes A Bill To Regulate Cryptocurrencies Such As Bitcoins
Crypto Regulation Bill Passed In Mexico Targeted At Fintech Development
With Bitcoin experiencing meteoric growth off late, regulatory bodies worldwide are suggesting crypto regulation to safeguard its investors from the pangs of fraud and money laundering without shunning the resultant economy from its massive growth potential. Very recently, a bill got approved by the Mexican Senate for regulating fintech usage in the country given its rapidly surging demand.
Mexico is gaining rapid popularity as the think-tank of fintech innovation which is posing as a major threat to the government for derailing its financial stability. It was reported in newspapers that the bill approved by the lawmakers shall enable them to advance to a vote in the lower house of the Mexican Senate. This overarching legislation expected to be voted into law on 15th of December shall enable the spread of this regulation over fintech providers. Secondary laws are also expected to be introduced for précising out the regulation details. The exact coverage of this legislation is yet to be decided upon. However the initial steps shall surely form setting a stepping stone into the world of building fintech laws. Once the bill gets passed, Mexico will join a bevy of other countries such as U.K and U.S in the drive towards ushering in crypto regulation of fintech providers.
Mexico has become the ideal testing ground of fintech providers who are flocking in groups for utilizing its true potential. About 50 percent of the total 120 million population of Mexico are not any valid bank account holders. This has increased the demand of online-only financial products amongst its citizens who can access and manage the same using a smartphone. The Mexico government is looking at other areas of concern which might crop up as a direct effect of the number of fintech providers increasing in the country with each passing day. The biggest shortcoming of these fintech firms are that much is not known about them or their offerings leading to farfetched confusion. There also exist fears concerning the fact that it might become increasingly difficult for the country’s central bank to maintain its strong foothold as the economy can get destabilized following fintech use. Criminal operations such as money laundering may also become all the more rampant once cryptocurrency increases its transaction volume.
Industry pioneers of Mexico have warmly welcomed this fintech regulatory decision. Felipe Vallejo, the director of public and regulatory policy at Bitso the cryptocurrency exchange recently pointed it out to Reuters that such a regulation will help Mexico in realigning itself with other countries globally. Vallejo also added that this regulation meant “victory for the sector,” and that it houses the tremendous potential of making Mexico all the more attractive to external fintech investors. No final indication has yet been received in regards to the target of the bill and its roadmap for enforcement. The general notion is that the bill focuses mainly on lowering transaction costs and improving transparency thus hiking up the competition level in the industry. A collaboration of such actions is expected to improve the financial ecosystem of Mexico and help it evolve towards its stride of attaining excellence.
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Tarunima Ghosh Laha
Tarunima Ghosh Laha is a Finance Post Grad from St. Xaviers who believes Finance is more than just Balance Sheets and Ledger creation. This filmy bookworm who believes she was a sloth in past life also nourishes a penchant of owning a private zoo someday. Equipped with a laptop and online Lexicon she is all set to give finance a glamorous makeover in the form of exciting writeups with bang on info and flashy new words.