A fresh new set of regulations are set to take hold in Mexico according to its central bank, the Bank of Mexico. It has been revealed today that Bitcoin exchanges and other crypto-related businesses will not have to have a unique government permit.
Published on the government’s official daily, all cryptocurrency exchanges and their related businesses will have to provide detailed plans on its operations, commissions, business model, revenue streams, and know-your-customer (KYC) checks. Users also will not be able to trade cryptocurrencies the same day they open their account either and everyone is subject to KYC protocols.
As per the document:
“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”
Of course, the goal of the new regulations is to prevent money laundering. The Bank of Mexico has expressed concern that cryptocurrencies may be a breeding ground for such activity, despite no such evidence being presented.
On top of all this, businesses who make dealings with cryptocurrencies will have to register for a separate valid digital certificate by filling out a application online. This is all according to local news outlet El Siglo de Torreon. Those unable will have to mail their application with explanations on the jurisdiction of the signature and which parties are involved.
Although the new regulations by Mexico’s central bank were announced today, they will likely have to wait until March 2019 for these new stipulations to be formalized. Those businesses that choose to work with cryptocurrencies will therefore then have “electronic payment funds” which will be connected to their business accounts. This way, all transactions via cryptocurrencies to businesses and for goods will be easily monitored and followed.
Earlier this year, Mexico’s legislature approved a bill to regulate the country’ fintech sector with the purported goal of creating sound economy without money laundering. The Bank of Mexico will also, supposedly according to this legislation, have a say in which cryptocurrency can be listed on Mexican crypto exchanges. However, this has not yet seen as real effect on current withstanding exchanges in the country.
Mexico has also been working on a legislative regulation which would seek to “mitigate risk” in regards to cryptocurrencies, perhaps even capping its involvement in the public, but this piece of legislation is still not completely written nor has it been proposed. However, Mexican authorities have repeatedly expressed interest in regulating the space which the Bank of Mexico likely sees as dangerous in its inability to be controlled like regular fiat currency.