Mexican Legislation Proposes Regulated Cryptobanks, Transfer Services

The Law Regulating the Financial Technology Institutions (FinTech Law), which is currently pending approval in Mexico’s senate, proposes a regulated framework through which banks can store cryptocurrencies and electronic payment-processing firms can transfer them, according to the Mexican periodical El Universal.

The publication reports the Bank of Mexico’s director general of financial systems, Alan Elizondo, as having said that if the bill passes in its current form, companies falling under its purview will be “more strictly regulated compared to other Non-Banking Financial Companies … that have been operating in the Mexican market for years.” Mexican citizens in possession of cryptocurrency would be encouraged to store it with and send it via compliant vendors, though they seemingly would not be required to do so.

Based on Elizondo’s remarks, it seems feasible that customer-owned digital assets in the possession of regulated institutions will be visible to some government entities.

If and when the FinTech Law passes, the director general said, the central bank will issue additional regulations concerning cryptocurrency. According to El Universal’s translation, a draft of the bill states that the legislation “recognizes the need that a sector as dynamic as that of technological innovation needs a regulatory framework that allows authorities to mitigate risks and allow for growth in a competitive environment.”