Mexico wants to regulate cryptocurrencies through a bill that is now set for the final signing by the president to become law. The regulation gives central bank sweeping powers to decide which cryptocurrency trades in the exchanges.
Mexico is now part of the few countries that have so far put into place new legislation meant to address and regulate cryptocurrency and blockchain industry. This is after the approval of related special provisions by Mexico’s lower Congress.
The President of the association Fintech Mexico, Franciso Mere said,
“Open banking recognizes that the information in the hands of the financial institutions is the property of the user, not the institution’s and that it bring to other financial intermediaries.”
Considerably, the law, small and medium-sized bank and also startup will able to client’s information via APIs. Thus, the Mexico lawmakers will improve as new players begin to take over traditional banks.
The passage by the Congress comes after the bill went through the Senate stage this last December. It addresses the country’s financial stability and cracking down on money laundering. Additionally, the bill creates room for the responsible use of cryptocurrencies.
The law does not have specifics but addresses regulation of cryptocurrencies from a generalist point of view. However, lawmakers are expecting to draft secondary regulations on the use of cryptocurrencies.
Nevertheless, the new regulation allows the Bank of Mexico to decide which fintech can use cryptocurrencies. It means it will determine which coin should make it to the exchanges. Exchanges have up to one year to comply with the new regulations.
The new regulation could help attract more investments in the area of blockchain and cryptocurrencies including their adoption in the banking sector and encourage ICOs.