According to the Diario Oficial de la Federacion, Mexican crypto exchange operators will now be required to secure a permit from the Bank of Mexico (Banxico). The Mexican government is taking a lot of proactive measures to introduce cryptocurrency-specific regulations in order to solidify its position as a significant player in the crypto market and to fuel economic growth.
The crypto exchanges and related storage providers can provide fiat liquidity to all customers, guaranteed by the Bank of Mexico, under the terms of ‘general provisions on operations related to electronic payment funds’, once a permit is issued.
A digital currency business needs to follow a short procedure to prove its legitimacy and business structure in order to ensure that it gets a permit from the Bank of Mexico. The company needs to first provide a detailed business plan to Banxico that entails a description of its operations, commissions charged per-trade, staff roles and activities and the procedure for a Know-Your-Customer mandate.
The Bank of Mexico won’t be providing liquidity to the crypto exchange customers on the same day of opening exchange accounts. The idea behind this is to prevent money laundering and other illicit activities. Apart from this, all entities conducting business needs to prove the legitimacy of all corporations and customers involved in each trade.
Consumers will now face slightly increased scrutiny with the new laws in place. For instance, all assets acquired after cryptocurrency payouts will be subject to validation check levied by the government, as stated in the CryptoSlate report. The secondary provisions of the law came into force on September 10.
Some of these new provisions that are presently effective directly impact crypto active or virtual assets. The regulations that have already been approved against electronic payments, money laundering and collective collections, indirectly impact the management of virtual assets.
The permit issuance window is presently closed for new crypto exchanges. The applications will re-open in March 2019 when the Mexican government will issue new fintech regulations for the upcoming fiscal year, as stated in the CriptoNoticias report.
The post Mexican Crypto Exchange Operators Now Required To Secure Permit From Bank Of Mexico appeared first on OWLT Market.
from OWLT Market https://ift.tt/2D7Cuy6
via IFTTThttps://ift.tt/2OlCCL9
No comments:
Post a Comment