Mexico approved bill to regulate fintech sector

Mexico could be among the first countries to regulate cryptocurrency and ICO
06 December 2017   581

Mexico’s Senate on Tuesday approved a bill that would regulate financial technology sector, including ICOs and cryptocurrency firms, setting the stage for a vote by the lower house and it is expected to pass in a final vote by December 15.

The bill aims to set out clear rules and reduce costs to users. That should drive competition in a sector that includes crowd-funders and payment firms.

The central bank will be tasked to propose measures to regulate firms operating with cryptocurrencies. Financial services firms see potential growth in the second largest Latin America’s economy by reaching the more than 50 percent of Mexico’s roughly 120 million citizens without bank accounts.

Now, Mexico is facing the growing demand for bitcoin.

Mexico's volumeWeekly LocalBitcoins Volume (Mexican Peso)

That bill, if enacted, would allow Mexico to join a list of countries, including the United States and Britain, that have sought to regulate fintech firms.

Bank of America: Cryptocurrencies Are a Threat

Bank of America (BoA) has admitted to US regulators it can not pretend any longer that cryptocurrencies are not a threat
23 February 2018   128

On February 22, the report was filed with the US Securities and Exchange Commission (SEC). It listed a range of economic, geopolitical, and operational risks that the Charlotte, NC-based bank faces as it heads into the new fiscal year. Crypto adoption was on the list for the first time.

Bank of America (BoA), which recently banned purchasing of crypto with credit cards, stated that this and other similar policies could cost the bank clients.

Clients may choose to conduct business with other market participants who engage in business or offer products in areas we deem speculative or risky, such as cryptocurrencies.

The second largest bank in the U.S. said that adoption of cryptocurrencies could require the bank to make “substantial expenditures” to update its existing services and remain competitive with upstart firms.

The widespread adoption of new technologies, including internet services, cryptocurrencies, and payment systems, could require substantial expenditures to modify or adapt our existing products and services.

According to the Bank of America, cryptocurrencies could limit the institution’s ability to comply with anti-money laundering regulations.

Eventually, this is one of the first public admissions that financial institutions are beginning to worry that mass cryptocurrency adoption could one day become a reality.