Bank of Mexico and SHCP warn of cryptocurrencies risk: ‘they do not fulfill the function of money’


Banxico, Hacienda, and the CNBV warned financial institutions that they are not allowed to offer operations with cryptocurrencies.

The Bank of Mexico (Banxico) and the Ministry of Finance and Public Credit have warned banks and financial institutions that they cannot operate or offer cryptocurrencies to the public.

Together with the National Banking and Securities Commission (CNBV), the entities issued a joint statement, in which they recalled that if any company does so, it may face sanctions.

“Financial institutions are not authorized to hold or offer to the public operations with virtual assets, such as Bitcoin, Ether, XRP, among others, including deposits or any other form of custody, as well as exchange or transmission,” they pointed out.

They added that after the entry into force of the Law to Regulate Financial Technology Institutions, known as the Fintech Law, Banxico issued provisions for the use of cryptocurrencies and it stipulates that companies must request a permit for it.

However, the use of digital currencies may only be authorized for internal operations and they must prevent the risk of such operations from being transmitted, directly or indirectly, to their clients.

“They will not be eligible to obtain said authorization those operations that institutions request to celebrate with virtual assets through which they intend to provide direct exchange, transmission or custody services of virtual assets to their clients,” they indicated.

In addition to this, after a week and a half ago the company Moneta Digital presented MMXN, the first cryptocurrency linked to the value of the peso, which is known as stablecoin or “stable coins”, Banxico and the Treasury warned that the issuance is restricted to entities financial institutions regulated in the country.

“As long as the corresponding authorizations are not available, any natural or legal person is not allowed to raise resources through the issuance or offer in the national territory of the instruments called ‘stable coins’ with the characteristics described,” they stated.

“Therefore, those who issue or offer said instruments will be responsible for the infractions to the regulations that this causes and will be subject to the applicable sanctions.”

Finally, the national financial authorities reaffirm that they will be in constant coordination to follow the evolution of cryptocurrencies and the potential uses of the technologies that they underlie.

Source: Forbes Mexico

Mexico Daily Post