Mexico Central Bank Warns Banks Against Offering Crypto Services

Mexico’s Central bank or Banxico has warned the financial institutions operating in the country against dealing with cryptocurrencies.

June 29, 2021, | AtoZ Markets – Cryptocurrencies are not legal tender in Mexico and financial institutions face penalties for using them. This is stated in a joint statement by the local central bank, the Ministry of Finance, and the National Commission on Banks and Securities.

The financial authorities reiterate their warnings […] about the risks associated with the use of so-called ‘virtual assets’ as a medium of exchange, savings or other form of investment,” the statement said.

The regulators stressed that the financial institutions located in the country “are not authorized to conduct and offer transactions with virtual assets,” including Bitcoin, Ethereum, and XRP. Finance Minister Arturo Herrera doubted that the position of the authorities will change in the near future.

In 2018, the local Central Bank ordered cryptocurrency platforms to obtain work permits.

In 2020, analysts at venture capital firm Jump Capital ranked Mexico among the top three most promising jurisdictions for bitcoin and other digital assets. As of the same year, the country accounted for nearly 11% of all retail crypto payments in Latin America.

Recall that one of the Mexican billionaires Ricardo Salinas Pliego spoke out in support of digital gold and called fiat money a fraud. According to the billionaire, his bank Banco Azteca may start accepting bitcoin.

Think we missed something? Let us know in the comment section below.

Share Your Opinion, Write a Comment