CNBV: cryptocurrency companies in Mexico could fall into illegality.
Mexican financial or fintech technology companies that do not request their regulation under the Fintech Law before the deadline, on September 25, must cease to operate as of the next day. Otherwise, they would be operating illegally. This was noted by David Esaú López Campos, technical vice president of the National Banking and Securities Commission (CNBV).
López Campos highlighted the risk that companies that maintain operations stipulated in the Law would run without having sent their request for regulation, says the local El Economista. The people in charge of this type of institutions could be sanctioned with up to 15 years in prison, if they operate illegally.
Likewise, the Mexican official stressed that the CNBV has a period of between 3 to 9 months to respond to the requests of the companies. He also said they have been receiving applications constantly in recent months.
“We have already received many files, for some months we have been working on it. On average, we must be receiving two or three companies a week, it is a cluster of companies that operate with these characteristics.”
The Law to Regulate Financial Technology Institutions, known as the Fintech Law, entered into force in March last year in Mexico. The legal instrument includes not only cryptocurrency exchange houses, but also collective financing companies, payment and remittance funds and even banks.
Apart from the request to enter the regulatory framework, cryptocurrency exchange houses have been obliged to modify their operational processes. Otherwise, they will not be in accordance with the legal framework in force in Mexican territory.
For example, Volabit and Vexbi announced that they will continue to operate with Mexican pesos (MXN). However, deposits received on their platforms with the national currency of the Central American country will be immediately converted to USD Coin, currency anchored to the US dollar.
For its part, the exchange house Bitso migrated its services with cryptocurrencies to Gibraltar. It will operate under a framework developed by the Gibraltar Financial Services Commission for the cryptocurrency sector.
PayPal, another fintech company that does not operate with cryptocurrencies, also modified its services in Mexican territory. The company will eliminate the possibility of maintaining a balance in the accounts of its Mexican clients. These users will receive the funds that reach their PayPal accounts directly in their associated bank accounts in Mexico. This new mechanism begins on September 25.
Those companies that operate with cryptocurrencies are required to share with the Ministry of Finance and Public Credit the operations of their clients that are above MXN 54,000, which translates into approximately USD 2,800. This measure responds to the Federal Law for the Prevention and Identification of Operations with Source Resources currently in force in the country.
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