Mexico’s central bank, Banxico (Banxico), issued a circular stating that bitcoin exchanges and businesses dealing in cryptocurrency assets within the country would require a permit from the government.
The circular was published on the government’s official daily, Diario Oficial de la Federacion. It states that crypto exchanges as well as related businesses must submit a detailed business plan, including operations, commissions and know your customers (KYC) checks. The document is as follows:
“Institutions of electronic payment funds should request [an] authorization of the Bank of Mexico in order to use technologies associated with virtual assets.”
The circular also states that financial institutions won’t be permitted to trade in cryptocurrency on the date of account opening. They will also need to identify all users of the account who are engaged in cryptocurrency trading.
Banxico’s goal is to stop money laundering by applying additional checks for certain cases. According to El Siglo de Torreon local news, businesses will need to submit applications online with a valid digital certification in order to be approved. If you don’t have a valid digital certification, you can send the applications to the Gerencia de Operacion y Continuidad de Negocio de los Sistemas de Pagos. If you submit a physical form, the signatures must be ” persons” who have been registered with the organization.
While they will have to wait until March next year to see the general provisions of the new fintech legislation,” Crypto firms can apply for permits since Sept. 11. Firms that receive permits will have an ” Electronic Payment Funds” account which will permit them to use cryptocurrencies.
The lower house of Mexico’s legislature passed a bill to regulate Mexico’s fintech industry earlier this year. According to reports, the bill aims to promote financial stability as well as prevent money laundering. The Bank of Mexico received the power to veto the selection of cryptocurrencies on the country’s exchanges.
Since last year, the country has been constantly developing legislation to regulate crypto assets as well as companies that deal with them.