At the end of last week, the Bank of Mexico published the details of a new legal framework for cryptocurrency regulation. Industry representatives have already called it catastrophic, not only for their business, but also for the country's economy as a whole, Bitcoin.com writes.
Since the circular seems to have been written in a rush and without careful analysis and basic competence, it leaves to the interpretation of certain important things.. Mexico is the endpoint to the biggest remittance corridor in the world (second largest population of migrants), the 6th most visited country by tourists and [is the] country with the largest number of free trade agreements. [Therefore, the country] has a lot to gain from the industrial application of virtual assets (activos virtuales) to facilitate free trade, tourism and financial inclusion. The impact goes beyond the crypto industry. I believe it damages the economy as a whole.
Isbit has already switched to working with corporate clients. If the exchange wants to continue to serve the public interest, then it will have to protest the new rules, Checa noted. Volabit CEO explained that these requirements apply only to regulated fintech companies, which are not yet available in Mexico, since the procedure for registering such companies does not exist. Unregistered exchanges can continue to serve customers until September of this year.
Essentially stipulated that they wouldn’t authorize any cryptocurrency to be offered by regulated financial companies.
Bitso - another Mexican exchange - in its blog said that the new requirements will not cause a full stop of its operating activities, but can significantly slow down the development of the industry.