According to the newly published rules in the North American country, Mexico. The Central Bank of Mexico is now in charge of cryptocurrency and fintech in the country.
The Bank of Mexico will decide which cryptocurrencies are legal and fintech companies must gain approval from the central bank to operate in the crypto space.
According to the president of the National Banking and Securities Commission (CNBV), Bernado Gonzalez, “The fintech law is meant to regulate financial and technological institutions in Mexico, making it the first country in Latin America to establish a legal framework for this type of company,” El Universal reported. Gonzalez explained that “the rules would apply to crowdfunding companies, online payments, and cryptocurrencies.”
In that document published by Mexican government, the authority to carry out transactions involving cryptocurrencies was placed in the hands of the Bank of Mexico.
Any company interested in cryptocurrencies “must request authorization from the Bank of Mexico so that they can use those technologies associated with any of the virtual assets” approved by the bank.
A news outlet in Mexico went further to explain:
“The Bank of Mexico (Banxico) reported that as of this Tuesday, September 11, financial institutions that are interested in offering ‘financial technology services with virtual currencies and foreign currency operations’ may send their request specifying the commissions that will be charged to the public.”
Moreover, Bernado Gonzalez who is president of the National Banking and Securities Commission (CNBV) said:
” this regulation opens up the possibility for small and medium-sized companies to obtain financing from the public through collective funding platforms…without having to go to a traditional credit institution…the rates offered today are much lower than in other financial intermediaries,”
The authority expects 73 fintech companies to apply for registration.
Henceforth, Companies may only handle the cryptocurrencies that the Bank of Mexico determines to be appropriate. And at the moment, the central bank has yet to announce which cryptocurrencies are legal.
But what’s your opinion on bank of Mexico being in charge of cryptocurrency and Fintech henceforth?