Mexico’s Central Bank To Tighten Bitcoin Regulations

by | Sep 15, 2018 | Bitcoin, Cryptocurrency, Cryptocurrency News

Mecixo | Mexico's central bank |Bank of Mexico | bitcoin | Cryptocurrency regulation | Bitcoin regulations

Mexico’s central bank, the Bank of Mexico (Banxico) released a circular pronouncing that the bitcoin exchanges and other businesses dealing with cryptocurrency assets in the country will require a government permit.

Published on the government’s official daily, the Diario Oficial de la Federación, the circular states that crypto exchanges and related businesses are required to submit a detailed business plan including their operations, commissions, business model, and know your customer (KYC) checks. The document reads:

“The institutions of electronic payment funds must request [an] authorization from the Bank of Mexico so that they can use technologies associated with any virtual assets.”

Furthermore the circular specifies that financial institutions wouldn’t be allowed to deal in cryptocurrencies on the day of their account opening. They will also have to identify all of its users who engage in cryptocurrency trading.

Banxico’s aim is to prevent money laundering by applying additional checks in certain cases. According to local news outlet El Siglo de Torreon, for approvals, the businesses will have to submit their applications online using a valid digital certificate. The applications could also be mailed if you don’t pose a valid digital certificate, to the central bank’s payments systems department, the Gerencia de Operación y Continuidad de Negocio de los Sistemas de Pagos. In case of a physical form, it will have to be signed by “persons whose signature has been previously registered” with the organization and come with a justification regarding why they’re submitted this way.

Although they may have to wait until March of next year for “the issuance of the general provisions of the new fintech law,” the Crypto firms have been able to apply for a permit since Sept. 11. The firms who will receive a permit have an “electronic payment funds” account that will allow them to operate using cryptocurrencies.

Earlier this year, the lower house of Mexico’s legislature approved a bill to regulate the country’s fintech sector. Reportedly, the bill is aimed to promote financial stability and prevent money laundering. The Bank of Mexico was given the veto power to decide which cryptocurrencies the country’s exchanges list.

The country has been constantly working and developing a legislation to regulate crypto assets and the companies dealing with them, since last year.

Read more: Mexico Congress Approves Cryptocurrency And Crowdfunding Regulations

Arshmeet Hora

The idea of expressing one’s views and reviews through words is beyond intriguing. What started as a creative let out has now become a passion and a profession for Arshmeet K Hora. In her own words ” with every word, every article that I write, my passion towards this medium has grown stronger.”  Arshmeet covers latest crypto news and updates as well as what happening new revolving around Blockchain Technology.

Get Latest Bitcoin and Crypto News

advertisement advertisement

Get latest Bitcoin & Cryoptocurrency News

 

Subscribe to our newsletters to get latest Bitcoin and Cryptocurrency news.

Thank you !