The Bank of Mexico (Banxico) has revealed its intention to impose stricter rules and regulations on the cryptocurrency sector. This includes compulsion of crypto exchanges and banks in the business of cryptocurrency in the country to obtain a permit from the apex bank. Banxico published this via a circular in Diario Oficial de la Federación, the official daily of the Mexican authorities.
Stringent Measures Per Say
There is a certain letter in public space named; “General provisions on operations related to electronic payment funds” stating that the Mexican Central Bank will retain a monopoly to the issuance of the cryptocurrencies-related permits. For a company conducting business in the digital currencies sector to obtain a license, such a company will have to provide a detailed business proposal containing; business plan, full description of operations, intended commission to be levied on users and the device put in place to authenticate customer identity.
Also, banks have been warned to restructure their account opening process. Financial institutions are not permitted to make virtual currencies available to a customer the same day they open an account, they are also necessitated to be aware of their customer’s identities, complying with the Know Your Customer (KYC) policy.
Nevertheless, Crypto Might Boom
Based on the report by a crypto-based media outlet, Criptonoticias, it is evident that institutions nursing an interest in the Mexican Central Bank issued Permit, such an institution must have submitted their applications by September 11. Failure to do this implies that those institutions will not be covered in the current legislation because while they can reapply in March 2019, a new set of regulations must have been in place
The light at the end of the tunnel for the cryptocurrency ecosystem is that despite all the stringent measures imposed by the Mexican Central Bank, there are still speculations stating that Mexico could witness a cryptocurrency boom by the end of this year.
According to the founder of a local crypto exchange known as Cubobit, Amir Manzur, the introduction of bogus Fintech law in March would foster the confidence of the consumers in the digital currency market which will consequently make them invest. He stated this while in an interview with Forbes Mexico.
Mexico has also been accepting different companies from all over the world that are working with blockchain technology. One of these examples is the case of Ripio, a company that works in order to spread financial inclusion.