Mexico: New Crypto Regulations Could Shake The Country’s Exchanges

The latest news on our DC Forecasts crypto news site show that experts in Mexico have recently warned that the central bank and its newly proposed crypto regulations could derail the progress in the country’s burgeoning crypto sector.

As the reports show, the central bank in Mexico – known as Bexico – is ready to introduce a new series of reforms that will aim at keeping conventional financial operations and crypto-related businesses “at a healthy distance” from each other.

However, another report in the Mexican newspaper El Economista shows that Bexico’s proposed reforms could end up doing a lot more harm than good for crypto exchanges selling Bitcoin – potentially driving a wedge between them and the traditional financial sector.

As one writer named Fernando Gutierrez noted, one of Bexico’s proposed reforms would “limit the use of cryptocurrencies to internal use only for banks and regulated fintech companies.”He also said that this measure would likely force the exchanges without minding the new regulations.

The same outlet has quoted the managing director at the fintech regulator named the National Banking and Securities Commission named Rocio Robles. As Robles explained, even unregulated trading may become difficult under the new proposals. Peso withdrawals, for examples, could soon become illegal.

Robles stated that the proposes measures wouldn’t “kill off” the crypto exchanges in Mexico – but also admitted that Bexico’s measures would “put a lot of obstacles in their way” and added that “cryptocurrencies can continue to make progress in Mexico, but they will involve a lot more hard work” if Bexico gets its way.

Meanwhile, Coin Center, which is a Washington-based crypto-focused center for research and advocacy, stepped in the talks. As they said, these rules would deny Mexicans the benefits of crypto technology while failing to protect them from the risks. The executive director of Coin Center wrote a statement in which he noted:

“If there are no Mexican-based exchanges, Mexicans will inevitably use exchanges based in other jurisdictions. Some of these foreign exchanges may be sensibly regulated by more forward-looking governments, but others may be rogue operations that deliberately evade any regulatory jurisdiction,”

“The average person has no idea how a car works, and yet people are allowed to drive them,” the statement said.

Bexico’s proposals are subject to a 60-day consultation period during which a lot of things may change. Right now, industry officials and public members should outline their opinions on the case.