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Mexican Crypto Exchange Makes 11th-hour Bid to Halt Regulations

Tim Alper
Last updated: | 1 min read

One of Mexico’s largest cryptocurrency exchanges, Bitso, has made a last-minute plea to stop the central bank imposing tough new fintech regulations, urging it to go with “international”-style guidelines instead.

Source: iStock/daneger

As previously reported, Mexico’s central bank (known as Banxico) earlier this year issued a much-maligned consultation paper that critics say would “jeopardize” the future for Mexico’s budding exchange scene and cryptocurrency industry.

The proposals involve placing strict limits on trading, possibly making peso withdrawals from exchanges via banks illegal.

Banxico has also said that it wants to restrict corporate cryptocurrency transactions to “internal use” only – making inter-company crypto trading and payments impossible, and outlawing end-user crypto payments.

The deadline for consultation expired on June 5, but El Economista reports that Bitso submitted a last-gasp plea to convince Banxico to change its mind just before the clock ticked down.

Bitso stated, “The Canadian government allows citizens to use [cryptocurrency] to purchase goods and services on the internet and in stores,” adding that this has been “beneficial” for businesses with “improved efficiency.”

The exchange also noted that cryptocurrency usage in dealings could, in fact, help prevent fraud when used correctly.

The exchange added, “These are just a few of the benefits that users, or potential users, would be deprived of if the Banxico proposals are enshrined into law.”

Bitso pointed to examples of pro-business regulations implemented in Switzerland and Singapore, both of which have become hubs for the international cryptocurrency business community.

The Mexican government is thought to be particularly concerned by reports of widespread money laundering by mob financiers and is keen to clamp down fast.

However, Bitso claims that proactive, co-operative cryptocurrency adoption could actually help the government fight crime.

The exchange stated,

“Regulations that encourage cooperation between the government and exchange platforms can help to reduce (illegal) activities in a meaningful manner.”

Meanwhile, India is reportedly working on the draft bill “Banning of Cryptocurrency and Regulation of Official Digital Currency,” which aims to introduce up to 10 years jail term for cryptocurrency owners. However, according to recent reports, it may be softened.