|The Mexican Central Bank, short Banxico, has published several suggestions to reglulate cryptocurrencies and the fintech sector. The regulation has two goals: Firstly, to monitor legal and illegal conduct of transactions. Secondly, to help the crypto sector grow in the country.
The central bank follows an approach that seeks to establish a strict separation of ordinary financial transactions and crypto transactions. Banxico further aims to establish directives for enterprises that administrate crypto assets in high numbers. As any institution can easily send these abroad – and thus out of the control of the Mexican authorities.
The Central Bank also suggested requiring every institution that wants to deal in with cryptocurrencies or with digital assets to get authorization first. A model that is comparable to that of Korea or Japan. However, all these points are, as of now, mere proposals and Banxico is open to the industry to discuss them before turning them into active law.
Mexico regulated the crypto sector for the first time in September last year. Back then the government decided that the Central Bank should be in charge of regulating the sector. An approach that was controversial back then as the Central Bank’s employees are not elected into their office. The Central Bank proceeded to apply regulations that it previously designed for the fin-tech sector in general.