Mexico is Not Banning Bitcoin, Central Bank’s New Cryptocurrency Rules Change Nothing
Cryptocurrency space has seen its fair share of cryptocurrencies FUDs. Though the market has matured and these rumours don’t affect the market as it used to, these fake news are unhealthy for the market. The latest incident that is the victim of this FUD is Mexico and its latest crypto-related guidelines that led many to believe that these will result in the crypto ban which is not the case.
There have been some misunderstandings in this regard while the guidelines aren’t even official yet with no mention of “ban,” however, these can bring some potential changes in the future.
The proposed changes will have an impact on crypto service providers but going with the ban is stretching it a lot. According to the official document, the authorities are looking for comments – with the deadline for participation being 05/06/2019 – from the general public regarding
“Provisions of a General Nature applicable to Credit Institutions and Financial Technology Institutions in Operations that they make with Virtual Assets.”
It notes that these assets are characterized as volatile, and expensive and risky to hold transactions while being difficult to scale.
“It is considered convenient to maintain a healthy distance between virtual assets and the financial system. However, despite the foregoing, the Central Bank is seeking to promote and take advantage of the use of technologies that could have a benefit from the perspective of efficiency or functionality, as long as these technologies are used in the context of the internal operation of financial technology institutions and credit institutions and this, to in turn, does not imply a significant increase in their operational or financial risks,”
reads the translated version of the document.
Crypto Exchange Continue to Operate as it has Until Now
Mexican cryptocurrency exchange Bitso made a public statement on “Banxico 2.0 Rules: Nothing changes, Bitso will continue to operate as it has until now,” where it states that Bank of Mexico seeks to take advantage of this technology and doesn't oppose the operation of companies like Bitso.
Banxico publicó nuevas reglas, representan un estancamiento para el sector pero no detienen nuestra operación. Seguiremos enfocados en nuestros usuarios; defendiendo tu derecho al acceso a la tecnología.
— Bitso (@Bitso) March 13, 2019
Bitso that has been functioning as a regulated platform believes this circular is not in line with the principles of Fintech law and further undermines principles of innovation, financial inclusion, and competition to provide consumer benefits.
The Mexican exchange ensures that it will continue to offer its services to its customers much the same way as they have been doing so far. Meanwhile, the company will continue to build a dialogue with the authorities “to promote the healthy development of the Fintech sector,” and defend people’s right to access technology.