In today’s news, we will discuss the new crypto regulation going on in the world currently. Every local crypto exchange operator based in Mexico now has to acquire a permit from the Bank of Mexico.
This government of Mexico is eagerly rushing to introduce specific crypto regulations claiming that they will only pump the economic growth of the country and will make a stable position for cryptocurrency on the market.
Once the permit is acquired, crypto exchanges will be able to provide fiat liquidity to all customers guaranteed by the Bank of Mexico. In order to acquire one first, every digital currency business has to go through a procedure only to prove the business’ legitimacy and way of work. Each company then has to give a detailed plan to the Bank of Mexico where they will describe all operations and activities. If the companies don’t meet the standards, the bank won’t provide liquidity to them saying that this way they will prevent money laundering.
Companies that are doing crypto business are now facing a lot more scrutiny because every single payout will be a subject to validation and later checked by the government. For now, the permit issuance is closed for new crypto businesses but in March 2019, the Mexican government plans on issuing a new set of fintech regulations.
The reason for the new set of regulations is said to be the increase in trust by the investors. The founder of the local crypto exchange Cubobit says that by introducing strict crypto regulations, the government will strengthen the confidence in digital currencies.