Banco De Mexico’s new proposal has left the crypto trading of Mexico on the brink of collapse. This devastating news was brought into notice by media reports on March 21, 2019. Mexico’s central bank has triggered alarms for all stockholders in cryptocurrencies by revealing some strict measures which, if made practical, would make the crypto exchanges go extinct in Mexico.
The executive director and Director of Research at the Coin Center have labeled this as a hostile act solely targeted to harm crypto exchanges. They stated that crypto exchanges that deal in digital currency require access to local banks and financial system and according to the new laws in place, this access has become very hard to achieve. Despite the Central Bank’s claims of not banning crypto exchanges, they will experience similar effects.
This proposal can also be highlighted as “ironic” for it is totally opposite to the new fintech law which was aimed to make crypto exchanges smoother and easily accessible. Mexico’s central bank is giving an indication of complete eradication of crypto trade. The discouragement in trading related to digital technology is evident in Mexico; crypto traders are not far from facing a freeze on trading.
This proposal also seems to complain that the country or its population is incompetent to comprehend digital trading such as cryptocurrencies. Coin center has pinned this event as a clear understanding that the central bank is least worried about providing the citizens with sources of revenue and is focused only on working for itself.
Parallel to this, the Reserve Bank of India forbade banks from providing crypto-based companies with services. This was challenged in court; hence India has yet to pave an agenda for crypto transactions.