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Mexican bank prohibits the trade of cryptocurrencies in the country

mexico bans cryptocurrency usage in country

Recently, the Basel committee spoke against the cryptocurrencies by highlighting the threat they present to the current banking system. The committee also spoke about methods banks should take to reduce their influence on the banks and therefore to avoid their fluctuations affect the traditional financial markets.

Now the Central Bank of Mexico (Banxico) announced a new set of laws regarding cryptocurrencies. This move raised a lot of questions.

The rules were released in the country’s official gazette. The bank prohibited all regulated financial companies from offering any kinds of crypto tokens.

The Fintech law that was implemented a year ago allowed companies to acquire an operating license simply through an application document. The law required such companies to get permission from the SEC and then the central bank would decide which cryptocurrencies can be offered. The bank would also have to create a framework to work with those tokens.

However, the latest ruling by the bank completely ignores the previous rules. This makes it impossible to trade cryptocurrencies as registered companies are prohibited from doing so and unregistered companies will be operating illegally.

The bank stated that cryptocurrencies and other digital currencies can only be used to facilitate internal transactions. The bank also added that companies are now forbidden from directly providing cryptocurrencies or even facilitate any crypto related services including its custody.

Currently, the situation has created a lot of confusion in the country. Companies and individuals affected by this ruling are waiting for further clarification for the matter.

How things go from here remain to seen; however, the ruling will take around six months to be implemented.

Johnson Go

Johnson Go

Blockchain enthusiast, project management specialist, writer and crypto investor. JG deals mostly with problems and solutions of crypto projects and provides market outlook for investments. He contributes his analytical skills to projects.

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