Mexico’s Central Bank Releases New Rules For Crypto-Related Services

News | September 13, 2018 By:

Cryptocurrency exchanges and banks offering crypto-related services in Mexico are now required to obtain a permit from the Bank of Mexico (Banxico), the country’s central bank.

In a circular published earlier this week, the central bank said that it established a regulatory framework for the crypto industry to mitigate the risks associated with crypto services. To obtain a license, companies dealing in crypto-related activities must provide a detailed business plan emphasizing the firm’s operations, the commissions they plan to charge, and a method they will use to effectively verify the identity of traders.

Under the new rules, bank customers will not be allowed to access cryptocurrencies on the same day their accounts are created. Any assets acquired by crypto beneficiaries have to go through additional validation checks to prevent money laundering and illicit activities.

“The Bank of Mexico seeks to continue promoting the protection of the interests of users by establishing adequate conditions for the development of a competitive environment in the payment services market, as well as the proper functioning of the systems of payments, the healthy development of the financial system and the promotion of electronic payment funds institutions,” the central bank said.

Amir Manzur, founding partner of Mexican crypto exchange Cubobit, believes the new framework will translate into greater confidence of the people to use crypto-related services.

“Mexico will experience a cryptocurrency boom at the end of the year, due to the boost provided by the FinTech Law,” Manzur said.