The Bank of Mexico recently disclosed through a notice that Bitcoin exchanges and other companies engaged in cryptocurrency asset transactions in the country will need government approval.
The announcement, published in the government’s official daily newspaper, the Latin American Federal Daily, said that crypto exchanges and related companies will need to provide financial institutions with detailed business plans, explain their operations, commissions, business models, and understand customers (KYC). Check the situation. The document show that he organization of the electronic payment fund must be authorized by the Mexican bank to use the technology associated with any virtual asset.
According to the notice of the People’s Bank of China, financial institutions will not be able to provide them with cryptocurrencies alike litecoin
, eth coin
and tron coin
, on the day they open an account, and must identify all users engaged in cryptocurrency transactions.
The financial institution’s goal is to prevent money laundering, so additional inspections will be implemented in some cases. According to local news media El Siglo de Torreon, companies that want to process cryptocurrencies must submit their applications online using a valid digital certificate.
Those who are unable to provide such services will have to apply to the central bank’s payment system department. A form submitted in this manner must be signed by “the person whose signature was previously registered with the organization” and explain the reasons for submitting in this manner.
Cryptocurrency companies have been able to apply for licenses since the September 11th incident, but they may not be able to “release the general terms of the new financial technology law” until March next year. Licensed cryptocurrency-related businesses will receive an “electronic payment fund” account that allows them to operate using cryptocurrencies.
As reported by CCN, the lower house of the Mexican parliament approved a bill earlier this year to regulate the country’s financial technology industry. According to reports, the bill aims to promote financial stability and prevent money laundering, and decided to allow Mexican banks to determine the cryptocurrency list of the country’s exchange.
Since last year, Mexico has been working on legislation to regulate companies dealing with bitcoin coin
and other cryptocurrencies. Last year, the Mexican authorities recognized the need to establish a regulatory framework to “mitigate” risks in the industry.