Mexican banks that provide crypto services and crypto exchanges must now apply for permits with the Bank of Mexico in order to legally carry out their operations.
All crypto exchanges and banks providing crypto services in Mexico will now be obliged to receive a permit from the Bank of Mexico (Banxico), according to a September 10 circular published in the official daily of the Mexican government, the Diario Oficial de la Federacion.
The letter called “General provisions on operations related to electronic payment funds” states that Banxico is responsible for issuing crypto-related permits. To get one, a company dealing in digital currencies must provide a detailed business plan complete with a description of their operations, the commissions they plan to charge, and the mechanism they will use to verify customer identity.
Additionally, banks are not permitted to make cryptocurrencies available to users if their accounts were created on the same day. Financial entities are also obliged to identify all customers involved in cryptocurrency trading. Furthermore, any assets acquired by crypto beneficiaries have to go through additional validation checks. Per Banxico, these measures will help prevent money laundering and illicit activities.
According to news outlet Criptonoticias, institutions interested in receiving Banxico compliance must have submitted their applications by September 11. However, they may apply again in March 2019 when a new piece of fintech legislation is expected to be passed into law.
Despite the new regulations issued by Banxico, Mexico could soon face a cryptocurrency boom by the end of 2018, according to Amir Manzur, the founder of local crypto exchange Cubobit. Manzur told Forbes Mexico that the introduction of comprehensive fintech law in March will only strengthen consumer confidence in digital currencies, encouraging people to further invest.