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The Bank of Mexico (Banxico) will grant permits to those companies wishing to trade on cryptocurrency exchanges. The financial institution announced the “General provisions applicable to the operations of electronic payment funds institutions” in a circulated letter published on September 10.
According to the official document, Banxico will determine what type of “digital asset” may be traded through this class of companies. The institution will be responsible for granting or denying the corresponding permits.
Companies must fully comply with the country’s legislative body to obtain this permit. The application process started on September 11. However, it is possible that the new crypto exchanges will have to wait for the issuance of the general provisions of the new fintech law, proposed for March 2019.
Those interested in obtaining the permits must submit a document to Banxico describing the trades they will carry out. This communication should include the business plan, identification of the target market, the exchange rate with which the trades will be carried out, the fees they intend to charge, and a description of the mechanisms they will use to verify compliance.
The companies that deliver this documentation and formalize the request will then be able to open Electronic Payment Funds accounts “in the name of individuals and corporations, national or foreign,” to carry out their exchange trades.
The establishment of exchange rates must be established in accordance with Banxico’s exchange policies. In addition, they must have a valid ‘Digital Certificate’ license that can be obtained from the Gerencia de Operación y Continuidad de Negocio de los Sistemas de Pagos.
On September 10, the secondary provisions of the law went into enforcement. Some of these new measures, effective from now on, directly affect cryptocurrencies.