The central bank of Mexico has published rules on crypto assets that put crypto exchanges in “a catch-22 type of situation,” the CEO of a local exchange explained to news.Bitcoin.com. They “essentially stipulated that they wouldn’t authorize any cryptocurrency to be offered by regulated financial companies.”
Regulating Mexico’s Crypto Industry
The Bank of Mexico (Banxico), the country’s central bank, published a circular in the Official Gazette of the Federation on Friday detailing crypto-related provisions for the regulation of financial technology institutions (ITFs).
Tomas Alvarez, CEO of Mexican crypto exchange Volabit, explained to news.Bitcoin.com on Tuesday that “A year ago a law to regulate fintech companies was passed by the Mexican Congress. This law stipulates that services that hold custody of users’ fiat money or cryptocurrencies (most brokers and exchange business models require this) have to apply for a license issued by the Mexican equivalent of the SEC (CNBV).”
He elaborated that the same fintech law “tasked the central bank of México (Banco de México) with the responsibility of determining which cryptocurrencies were authorized to be offered to the public by these regulated companies, and gave the Bank of México 12 months to come up with a secondary law to establish some kind of framework or list of authorized cryptocurrencies.” The CEO added:
The deadline was due to expire this month so last Friday Bank of Mexico published their secondary laws which essentially stipulated that they wouldn’t authorize any cryptocurrency to be offered by regulated financial companies.
The Bank of Mexico circular issued on Friday states that “Institutions may only enter into transactions with virtual assets that correspond to internal transactions,