The authorities of Mexico has printed provisions relating to cryptocurrency. The Bank of Mexico will determine which cryptocurrencies are authorized and fintech corporations should acquire approval from the central financial institution to function within the crypto house.
Fintech Law Applies to Crypto
The Mexican authorities printed a circular containing new laws for the fintech trade on September 10 within the official gazette of the federation. It consists of provisions for cryptocurrencies.
According to the president of the National Banking and Securities Commission (CNBV), Bernado Gonzalez, “The fintech law is meant to regulate financial and technological institutions in Mexico, making it the first country in Latin America to establish a legal framework for this type of company,” El Universal reported. Gonzalez defined that “the rules would apply to crowdfunding companies, online payments, and cryptocurrencies.”
The doc states that corporations wanting to hold out transactions involving cryptocurrencies “must request authorization from the Bank of Mexico so that they can use those technologies associated with any of the virtual assets” authorised by the financial institution.
La Verdad elaborated:
The Bank of Mexico (Banxico) reported that as of this Tuesday, September 11, monetary establishments which are inquisitive about providing ‘financial technology services with virtual currencies and foreign currency operations’ could ship their request specifying the commissions that shall be charged to the general public.
The information outlet opined, “In other words, a green light is given for the exchange of cryptocurrencies for cash.”
Gonzalez detailed that this regulation “opens up the possibility for small and medium-sized companies to obtain financing from the public through collective funding platforms…without having to go to a traditional credit institution…the rates offered today are much lower than in other financial intermediaries,” Televisa quoted him. The publication additional famous that “The authority expects 73 fintech companies to apply for registration.”
Central Bank Is in Charge
Companies could solely deal with the cryptocurrencies that the Bank of Mexico determines to be applicable, the round explains. However, the central financial institution has but to announce which cryptocurrencies are authorized.
Noting that the fintech legislation defines cryptocurrencies as “virtual assets,” Gonzalez reiterated that “the Bank of Mexico will establish which ones may be used in Mexico and which fintech or banks may carry out transactions with them,” El Universal conveyed. Criptonoticias elaborated:
Banxico will decide what sort of crypto belongings…might be traded by means of this class of operators. The establishment shall be chargeable for granting or denying the corresponding permits. Companies should comply totally with the nation’s legislative physique with a purpose to acquire this allow.
The aforementioned fintech provisions “indirectly affect the management of virtual assets,” the publication famous, including that “the general provisions for cryptocurrencies” are anticipated to be printed earlier than March 10, 2019.
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Original article first appeared in https://information.bitcoin.com/mexico-rules-crypto-firms-central-bank/