According to news released on 10th September by the Mexican authorities, every crypto transaction and financial institution offering cryptocurrency services in Mexico will now be required to obtain a working permit from the Bank of Mexico

The Basic Aspects of the Regulation

The authorities stated that “General provisions on operations related to electronic payment funds” demand that Banxico is the only body accountable for offering crypto-based licenses. To qualify for one, an institution involved in cryptocurrency must present a comprehensive business strategy showing how it will operate, the commissions it will impose on transactions, and the methods they plan to employ to confirm client identity.

Besides, the institutions are forbidden from providing crypto services to first-time customers. The banks are further required to validate all clients trading in digital currencies. All properties gained by cryptocurrency traders must undergo extra justification processes.

The Mexico government strongly argues these strategies will assist curb money laundering and other illegal activities like drug trafficking.

The Deadline for the Compliance

Criptonoticias, a reputable Mexican news outlet, reported that financial institutions interested in obtaining Banxico acquiescence must have handed their requests by 11th September 2018. Nevertheless, there is another chance to apply in the third month of 2019 when an extra set of fintech guideline is thought to be implemented into law.

What does this Imply to the Mexican Crypto Market

In spite of the new rules crafted by Banxico, the Mexican crypto market could soon experience a boom, according to Amir Manzur’s thoughts, the founder of the Mexican crypto platform- Cubobit.

Manzur strongly believes that the implementation of a complex fintech regulation in March 2019 will further improve customer trust in cryptocurrencies, attracting more investors.