Mexico Enforces Additional Rules on Cryptocurrencies
September 14, 2018 3:26 pm
On 10 September 2018, The Mexican authorities have stated that every crypto transaction and financial outlet that offers cryptocurrency services will need a working permit. This work permit will be issued by the Bank of Mexico.
The authorities have further clarified that “General provisions on operations related to electronic payment funds” will be issued licenses from Banxico. To avail the license, the institution that is offering these services would require to present a business strategy and give a detailed report on its operations, the commissions imposed on transactions and the measures taken by the company to carry out KYC procedures.
Furthermore, institutions are restricted by the officials to provide crypto-related services to first-time customers. The banks will also play a role by validating the identity of clients who are trading in cryptocurrencies. The properties held by crypto traders will need added justification process. This move has been enforced by the government as a way to curb illegal activities like drug trafficking and money laundering.
Banxico’s acquiescence requires that the request for the license will have to be submitted by 11th September 2018, as reported by Criptonoticias, the Mexican news outlet. The next chance to apply for these licenses will be in March 2019. Though it will be harder to get authorization at the time due to the added guidelines implemented in the law.
Amir Manzur, CEO, Cubobit shared his thoughts on the existing situation. He said that even though the rules have been boosted in the country, it is expected that the Mexican market will experience a boom in cryptocurrencies and blockchain technology. Manzur is looking forward to the fintech regulation that will be rolled out in March 2019 as it will help more people trust and invest in cryptocurrencies