Mexican legislation empowers central banks to regulate encrypted money start – ups


nnIn the regional newspaper El Economista and Reuters reported that the Mexican government is now very close to the implementation of legislation to regulate financial technology start-ups. It is reported that the latest draft of the bill clarifies that the encrypted currency, such as Bitcoin, does not belong to the legal currency in Mexico and gives Mexican banks the right to regulate companies that carry out encrypted money business.n
nTranslation: Clovern
The Mexican government is very close to implementing legislation to regulate financial technology companies – including those working in encrypted money.n
According to the regional newspaper El Economista and Reuters, the latest draft of the bill will clarify that encrypted money like Bitcoin does not belong to the legal currency in Mexico. In addition, the legislation will also give the Mexican central bank – the Mexican bank rights to carry out supervision of the company to carry out encrypted money business.n
In the draft (translation version):n
n”[Financial technology companies] can only operate the Mexican banks based on the general decision of the virtual assets, and to carry out this virtual asset business, must be authorized in advance by the Bank of Mexico.n
nThe contents of the Mexican Financial Technology Act have been circulated among companies since the spring of this year, primarily to companies that provide “alternative financial and investment channels”, including companies that deal with digital and encrypted currencies. According to reports, in the early draft published in March this year, also contains specifically for “committed to the purchase and sale of virtual assets of the institutions,” the rules, but now the statement has been removed from the draft.n
Mexican President Annaque Pena Nieto recently issued a statement that the bill will be implemented by September 20. According to Reuters, the bill will first be referred to the Independent Commission for consideration and then sent to the Senate for further consideration.n
Mexican bank governor Agustín Carstens has said that unless a bank or government officially recognizes the currency such as Bitcoin, they do not meet the currency definition.n
Carstens said in a lecture at ITN in the Technical University of Mexico in August that “technological developments in the financial system can not just be innovative,” but must appear with new laws.n

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