A bill has recently been approved by the Mexican lower house of Congress for bringing upon a regulatory overdrive in the country’s fintech sector. This bill which addresses both cryptocurrency regulations and crowdfunding issues shall put Mexico in the small list of countries who are trying hard to usher in legislation in cryptocurrency sphere.
As per Reuters, the bill aspires to “promote financial stability and prevent money laundering,” which has already been approved by the Mexican Senate in last December. Now it just requires the sign of President Enrique Pena Nieto for becoming a legal reality. “Secondary laws” will soon be drafted by the country’s regulators for determining essential details of companies dealing with virtual assets. Greater regulatory certainty shall be imparted to fintech company’s courtesy this new regulation while dealing with cryptocurrency related rules, crowdfunding and payment methods.
“Sharing of user information by financial institutions through public application programming interfaces (APIs)” shall also be permitted by the law as revealed by Francisco Mere, the president of the association Fintech Mexico who added that, “Open banking recognizes that the information in the hands of the financial institutions is the property of the user, not the institution’s, and that it can be brought to other financial intermediaries.”
Client information pertaining to large banks can be used by the financial institutions through APIs once the users agree to the same. The final call regarding cryptos making it to the exchanges list shall be taken by Bank of Mexico, the country’s central banker. The exchanges will have a year’s time to comply with the same.
Mere pointed out that the bill shall “allow better services, better costs and more inclusion.” It was also noted by a certain sect of the law backers that much improvement will come along in the financial services sector of the country as new players enter the arena for competing with the traditional banks. Reuters further added that the law has been crafted in such a way that it can cater to general application. National Banking and Securities Commission (CNBV), the banking and securities regulator of the country is expected to work on some important issues along with the finance ministry and the central bank. The details are expected to be revealed to general public “in the coming months.”
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Rohit Kukreja is a Commerce graduate with Financial Markets expertise involving Stocks, Forex, Futures & Options Market and now Bitcoins & Cryptocurrency Markets. Blockchain Enthusiast but not a techie, Rohit is an active member of various Blockchain & Crypto communities all over India.