Mexican Bank Attempts To Regulate Crypto Assets Leads To Failure

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People of Mexico have been waiting for the publication of the Bank of Mexico’s rules, which is the central bank. After the publication of the rules, there was quite a lot of agitation. According to the CEO of a local Cryptocurrency exchange, the impact of the rules goes beyond the Cryptocurrency industry and it definitely turned out to be a disaster. He also confessed that the people within the central bank have shown strict ignorance.

After Mexico’s central bank, Bank of Mexico (Banxico) has published the rules, a lot of discussions were done and a lot of issues did come up that really annoyed the people. The published circular provided details of the Cryptocurrency related provisions for the Financial Technology Institutions (FTIs) regulation. According to the CEO of the local Cryptocurrency exchange, the circular clearly stated that FTIs have to stop the consumers from being exposed to the hazardous nature of the virtual assets on the grounds of their complexity and volatility. Considering the total rules, one thing can be concluded that is in all the ways the circular is preventing the institutions to offer virtual assets to the end customers.

In March 2018, a law was passed by the Congress of Mexico that stated that the Bank of Mexico reserves the rights to decide which type of Cryptocurrency will be authorized to offer to the consumer. At that time, the stakeholders and the Cryptocurrency communities were very much hopeful for the new regulation that the central bank is going to introduce which they thought would be much profitable to both the country’s economy and the fin-tech sector. However, the circular that was published clearly specified that the central bank of Mexico would not authorize any Cryptocurrency to the financial companies. This will only make the process of integration much tougher and a long drawn process.

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