Mexico’s Central Bank has published rules on the crypto assets that put the crypto exchanges in a situation similar to the ‘Catch-22’ as stated by the CEO of the local exchange explained. According to him, they essentially stipulated that they would not authorize any Cryptocurrency that is to be offered by the regulated financial companies. On 8th of March 2019 (Friday), the central bank of the country, The Bank of Mexico also known as the Banxico has published a circular in the Official Gazette of the Federation that detailed about the crypto related provisions for the regulation of the financial technology institutions. The circular stated that the institutions may only conduct transactions with the virtual assets that corresponds to the internal transactions that is subjected to the prior authorization granted by the Bank of Mexico, otherwise it would be taken as illegal. Along with this, the provisions specify that they will not be eligible for obtaining the authorization to provide their clients directly with the Cryptocurrency exchange, custody services or transmission.
The provisions made in the circular ( Catch 22 rules) issued by the Bank of Mexico are subjected to the public consultation until 5th of June. Although, Alvarez stated that officially the law is in the effect since the moment it was published and it only applies to the regulated fintech companies of which no one exists as of now as the process for becoming a regulated fintech company has not been determined yet by the CNBV. He also clarified that the Fintech companies in Mexico are operating with a special waiver until the process for registration is ready allowing the companies to register for the license. He also confirmed that all of these will happen in around 6 months and it is not a short term process , it a matter of constant ongoing development.