Are ICOs legal in Mexico? Mexican Central Bank update

Mexico appears to add to the flow of cryptocurrency-related warnings. While Malaysia already plans cryptocurrency exchange regulations, Mexican Central Bank warns the public about the ICOs and crypto markets. Are ICOs legal in Mexico?

15 December, AtoZForex Mexican officials have issued a warning on Wednesday in regards to cryptocurrencies. The Mexican financial ministry and the central bank of the country stated that cryptocurrencies were risky investments. Moreover, the authorities stated that the fundraising programs Initial Coin Offerings (ICOs) could be in violation of the Mexican financial law.

Are ICOs legal in Mexico? Mexican Central Bank update

Amongst the skyrocketing popularity of cryptocurrencies, the global regulators have been raising their concerns in regards to the riskiness of the investments. In Mexico, the authorities along with the banking and securities regulator CNBV stated in a statement that such cryptocurrencies are not recognized in Mexico.

As of now, there have been no initial coin offerings that originated in Mexico, according to the statement. The officials have stated:

“However, depending on their specific characteristics, some ICOs that originate and are emitted in Mexico could violate the Markets and Securities Law and constitute a financial crime. Given their nature, virtual currencies have shown high volatility, as they are the subject of broad speculative activity.”

Cryptocurrency frenzy causes outages in crypto exchange platforms

Mexican authorities have urged only experienced investors to tap into the cryptocurrency market. The officials have cautioned to stay vigilant for any signs of fraud.  In fact, Bitcoin, the best-performing top cryptocurrency has been hitting new record highs lately.

Due to this sudden spike in interest for cryptocurrencies, many trading services were not ready for it. Numerous Bitcoin exchanges have been suffering outages. This has raised some concerns in regards to the reliability of the modern cryptocurrency platforms.

Cryptocurrency exchange operators Bitfinex and Coinbase have been reporting issues with services via their websites earlier this week. As a result, traders that have planned to cash out on the last surge in the price of Bitcoin and other altcoins felt frustrated.

Early Tuesday US time, the website of Coinbase has been displaying message “service unavailable”. The message has been stating that the website was down due to maintenance. Yet, its exchange was reportedly still quoting prices, even though it has also reported a “minor service outage”.

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