Mexico Central Bank has announced that it plans to issue crypto business permits in Mexico to operate in the country. The letter entitled “General provisions on operations related to electronic payment funds” outlines that the central bank of Mexico will have a strict review process.
13 September, AtoZ Markets – Mexico has introduced a groundbreaking change to its cryptocurrency regulating laws. In accordance with the latest decision of the Bank of Mexico (Banxico), all cryptocurrency exchanges and banks that are engaged in providing cryptocurrency services in Mexico will now need to obtain a permit from the central bank of Mexico.
Banxico to issue Crypto Business permits in Mexico
According to the official circular that has been published on the website of the media outlet of the Mexican government, the Diario Oficial de la Federacion, the Banxico is responsible for issuing crypto-related permits. The letter entitled “General provisions on operations related to electronic payment funds” outlines that the central bank of Mexico will have a strict review process.
In order to get a permit to deal in cryptocurrencies, a firm would need to provide a detailed business plan that is complemented by a description of their operations. Applicants will also need to disclose the commissions they are going to charge and the mechanism that they are planning to use to verify customers’ identity.
In addition, it is understood that banks in Mexico will not be allowed to make cryptocurrencies available to users in case their accounts were created on the same day. Authorities also require financial entities to identify all customers involved in cryptocurrency trading. Furthermore, any assets that are acquired by crypto beneficiaries will have to go through additional validation checks.
As per Banxico, these measures will aid prevention of money laundering and other illegal activities.
Mexico Fintech Legislation
According to some of the online news outlets, institutions that are interested in obtaining cryptocurrency compliance permits from the central bank of Mexico had the deadline to submit their applications set on 11 of September.
Yet, it is also reported that they might apply again in March 2019. That time, Mexican officials expect to pass another piece of the Fintech legislation into the law.
In spite of the new regulations that have been issued by Banxico, Mexico could soon see a cryptocurrency boom. This is according to Amir Manzur, the founder of local crypto exchange Cubobit. Mr. Manzur has shared that the introduction of the extensive Finteh legislation in March will fortify consumer confidence in digital currencies. This, in turn, would encourage people to invest into cryptocurrencies.
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