As the industry fostering cryptocurrency finds its way beyond the grasp of a layman, so does need for strict new policies initiates. The reason behind new and stricter policies isn’t to impose a larger ban over the exchange or trade on cryptocurrencies, but to implement fundamental rules to make sure that the exchanges that take place within the world of cryptocurrencies are not driving against the rules set by the commission which can result in an unwanted circumstance.
Even Mexico seem to understand the need for a supreme authority to place newer policies which can help in making the former rules enhanced in protecting their investors and traders from an unexpected turn of events. The rules also help the departments and authorities to stay in check of what is happening and create a more transparent system.
Now, all the banks and crypto exchanges in Mexico will have obligatory regulations set received as per the permit of Banxico – Bank of Mexico. These reports received by a circular submitted on September 10 in the Diario Oficial de la Federacion, formal day-to-day of the Mexican government.
The letter was under “General provisions on operations related to electronic payment funds” title which stated that Banxico holds the responsibility for allotting permits related to crypto. The permit will apply to those companies that will deal in dealing currencies which provides a meticulous plan for a business which discusses the operational description along with their potential commission and the mechanism or tool that will work at verifying the identity of the customer.
However, the bank doesn’t hold the authority to permit the availability of cryptocurrency to the users in case their accounts created on the very same day. Due to cases of crypto fraud and scam issues, the financial authorities hold the obligation of identifying all the customers that take part in cryptocurrency trading events.
A news outlet Criptonoticias reveals that for those institutions and firms that are interested in getting acceptance from Banxico have already submitted their applications by September 11. But the poll for an application might be accessible in March next year when there might be a newly passed law regarding the fintech legislation.
Amir Manzur, the local crypto exchange Cubobit founder, says that despite the new regulations imposed through Banxico, Mexico is still in the way of facing a “cryptocurrency boom” possibly in the end of 2018. Manzur says that the prospective law in March will strengthen the confidence of customers in virtual currencies and further encourage its customers to trust and promote investment.
It isn’t the first time that we have come across a state, committee or a government that is planning on building a new layer of security and better lines among the cryptocurrencies, especially when it comes to the trading prospectus. It might be the increasing availability of the currencies, increasing number of crypto scams and theft or the sheer need of having a durable defense against the growing technology which comes with an imposing threat of the unexpected.