Expert: ‘Regulations Will Help Spark Mexican Crypto Boom’
One of Mexico’s top fintech lawyers says cryptocurrencies will be commonplace in Mexico “by 2020 or 2021,” as the popularity of Bitcoin and altcoins grows in the country – and the government continues with a progressive approach to regulation.
State-run media outlet Notimex quotes Julio César Rojas de la Cruz, Fintech Advisor at Mexico City-based law firm RCA Abogados, as saying that the popularity of cryptocurrencies is increasing fast in the country. The lawyer says the rate is particularly high among younger Mexicans – who are keen to invest money in currencies that are not influenced by government policies or inflation.
Rojas de la Cruz also added that he believes Mexicans will be able to buy, sell and spend tokens without the use of a conventional financial institution (such as a commercial bank) “by 2020 or 2021.”
The lawyer also said that the government’s move last month to regulate cryptocurrency exchanges has already helped drive up interest in digital tokens – and is even providing a model for other countries looking to regulate. “Our legislative model is going to be replicated in other countries,” stated Rojas de la Cruz.
The Mexican parliament recently passed a law that will require exchanges in the country to operate under license from the country’s central bank, Banxico. As of March next year, companies wishing to obtain a license will need to present Banxico with a report detailing the nature of their business operations, a list of employees and their responsibilities, commission rates and proof that they are able to prevent customers from engaging in illegal activities, such as money laundering.
Rojas de la Cruz also stated that a second round of fintech regulations was also now in the pipelines, and would likely pass before parliament sometime next year – taking legal effect in March 2020.
The lawyer also said that a number of overseas exchanges were now looking to set up shop in Mexico following news of the regulations.
He opined that the country could also be set for another 2017-style crypto boom, stating, “Demand is rising increasing again, and we hope that between 2019 and 2020 [the cryptocurrency market] will generate the same sort of revenues and volumes as last year.”
A number of exchanges in the country have welcomed the new regulations, saying they will help legitimize crypto businesses, boost public confidence in cryptocurrencies and encourage investment.
Weekly LocalBitcoins, a peer-to-peer bitcoin marketplace, volume (in bitcoin) in Mexico: