A new law was introduced earlier this year by the Bank of Mexico, which entailed Mexican blockchain startups to apply for an operations license within the country.
The reason why startups had to apply was due to the blockchain’s affiliation with finances, therefore classifying them as financial services providers.
However, the law had not been fully implemented until only recently reports started coming in from Mexican media outlets about some blockchain startups that could ultimately halt their operations.
The license comes with multiple costs, as monetary compensation is requested alongside experts that will ensure the startup’s compliance.
This may sound harsh now, but let’s not forget that the previous version of the crypto regulation pretty much placed a permanent ban on handling, exchanging and selling cryptocurrencies by local startups. Having to apply for a license was basically a gateway for most entrepreneurs, but not all of them have the funding to handle it, unfortunately.
Thankfully though, there are several Mexican authorities who are directly opposing the new requirements, stating that the bar is set way too high and could potentially introduce a monopoly from already established corporations from offshore jurisdictions.
It’s no surprise that Mexican authorities request the dominance of Mexican companies and not foreign ones on their soil.