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The Bank of Mexico will take control of operations with the cryptocurrency

The other day, the Bank of Mexico (Banxico), amended the rules of exchange or trade with bitcoin or other crypto-currencies. In a circular published in the official daily Diario Oficial de la Federación, all companies, exchanges or banks providing services related to digital assets will require government authorizations.

The circular says that companies and related businesses will need to provide the financial institution with a detailed business plan that explains its operations, the commissions they plan to levy, and the mechanism that will be used to verify the identity of the client. Under the new rules, financial institutions will not be able to offer users crypto-currencies on the same day they open their accounts, and they will have to identify all of their users. The document says:

Institutions of electronic payment funds must request permission from the Bank of Mexico to be able to use technologies related to any virtual assets.

Banxico’s main goal is to prevent money laundering and illegal activities. According to local news reports by El Siglo de Torreon, businesses that want to obtain permits from the Bank of Mexico must file their applications in March 2019, when a new law regulating the fintech industry is scheduled.

Companies that have received a license to conduct operations with crypto currency will be registered in the “electronic payment funds“ system, which will allow them to work with digital assets.

The country is working on legislation that regulates companies that have worked with bitcoin and other currencies since last year, when the Mexican authorities recognized the need to create a regulatory framework for “mitigating risks“ in this sector.

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