Cryptocurrency services and institutions in Mexico are now under obligation to receive a permit from the Bank of Mexico (Banxico) before beginning their operations, according to a new official circular.
The circular was published by the Mexican government on its official media outlet, the Diario Oficial de la Federacion.
The publication titled “General provisions on operations related to electronic payment funds” explains that the Bank of Mexico will be solely responsible for issuing crypto-related permits.
Strict Regulation and Requirements
For a company to get a permit it must provide a detailed business plan and a complete description of their operations. Banxico may require information regarding the commissions they plan to charge, and how they will verify customer identity.
Furthermore, transactions on accounts that were created on the same day, will be refused for security reasons.
All crypto exchanges and banks providing crypto services in Mexico are obligated to identify their customers involved in cryptocurrency trading on a Know-Your-Customers basis.
More so, to improve anti-money laundering efforts, any asset purchased by cryptocurrency traders have to undergo more vigorous verification and validation check.
Predicting on the status of cryptocurrency in the country, Amir Manzur, founding partner of Cubobit, the first Exchange of Cryptocurrency, said on Forces Mexica that Mexico will soon experience a cryptocurrency boom at the end of the year, due to the boost provided by the Fintech Law, which came into effect on the eve with the publication of the first section of secondary provisions, said.