Mexico’s bill to regulate cryptocurrency exchanges has been approved by the country’s lower house of Congress and is now awaiting the signature of President Enrique Pena Nieto to become law. Crypto operators have 12 months to comply, a local crypto exchange explained to news.Bitcoin.com.
Mexico’s Crypto Bill Approved
Mexico’s bill to regulate the fintech sector, which includes rules on crowdfunding and cryptocurrency firms, has been approved by the country’s lower house of Congress, Reuters reported. In December of last year, this bill was approved by the country’s Senate. It is now waiting for President Enrique Pena Nieto’s signature.
The bill “seeks to promote financial stability and prevent money laundering,” the news outlet described. The National Banking and Securities Commission (CNBV), the central bank, and the finance ministry will soon begin drafting “secondary laws, which will determine key details for companies in the sector.” They are expected “in the coming months,” the publication noted, adding:
The law will give fintech companies greater regulatory certainty around issues such as crowdfunding, payment methods and rules surrounding cryptocurrencies such as bitcoin.
Changes to the Mexican Crypto Landscape
In an exclusive interview last week with news.Bitcoin.com, Daniel Luévano, the Director of Operations at Mexican cryptocurrency exchange ISBIT, explained what the passage of this bill means to crypto exchanges and its impact on the Mexican crypto ecosystem.
According to him, the law will require cryptocurrency operators to be approved by the Bank of Mexico as Financial Technology Institutions (ITFs). Those ITFs that the central bank approves can legally operate with cryptocurrencies and “all financial institutions [will] have permission to work with” ITFs, Luévano explained. “ITFs will be considered just as important as banks,” he asserted.
Citing that anti-money laundering (AML) and counter-terrorist financing (CTF) measures “will be a really important requirement for exchanges,” he added:
ITFs will be constantly audited; everything must be transparent to regulators and consumers.
Crypto exchanges will have 12 months to comply with the new law once signed by the president, Luévano clarified. As for which cryptocurrencies will be allowed by the law, he said, “the Bank of Mexico will decide which ones [cryptocurrencies] are allowed to be listed on the exchanges.”
Images courtesy of Shutterstock and Wikipedia.