New Bill in Mexico Could Make Bitcoin Use Illegal Elena Toledo - PanAm Post
go to original September 20, 2017

The most recent draft of the “Financial Technology Law” includes regulations of institutions dedicated to the purchase and sale of virtual currencies. (Flickr)

If you were thinking about buying or selling bitcoin, then you might want to stay out of Mexico. The currency won’t have any legal backing from the federal government there, let alone the country’s Central Bank, if a bill working its way through Congress is ultimately successful.

The most recent draft of the “Financial Technology Law” includes regulations of institutions dedicated to the purchase and sale of virtual currencies. It reportedly came as a surprise to many, as it wasn’t mentioned in the previous draft of the law released in March.

Article 30 of the draft’s third chapter establishes new regulations of virtual currency operations, saying that “in no case will active virtual currency be considered legal in national territory.”

Agustin Carstens, Governor of Mexico’s Central Bank, said virtual currencies like bitcoin do not have the backing of a central bank or a tax-paying country, which makes them more like commodities. Unlike real currencies, there’s nothing to secure their place in a financial system.

Though Banxico doesn’t support bitcoin, its role in the use of cryptocurrencies is still considered fundamental in the country: “ITFs can only operate with virtual assets that are determined by the Bank of Mexico through general provisions in order to carry out operations with said virtual assets,” Carstens said. “They must have the prior authorization of the Bank of Mexico.”

Read the rest at PanAm Post | Español

Related: Mexico to Join Club of Countries with Bitcoin Regulation (The CoinTelegraph)

Related: Mexico Readies Bill to Regulate Fast-Growing Fintech Industry (Reuters)

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