Mexican Law Would Give Central Bank Oversight of Cryptocurrency Startups

Mexico's government is close to introducing legislation that would regulate fintech firms, including those that work with cryptocurrencies.

AccessTimeIconSep 19, 2017 at 4:00 p.m. UTC
Updated Sep 13, 2021 at 6:56 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Mexico's government is close to introducing legislation that would regulate fintech firms, including those that work with cryptocurrencies.

The latest draft of the bill, according to reports from regional newspaper El Economista and Reuters, would clarify that cryptocurrencies like bitcoin are not legal tender in Mexico. Further, the legislation would give the Bank of Mexico, Mexico's central bank, the power to regulate firms working with cryptocurrencies.

The draft states (according to a translation):

"[Financial technology firms] can only operate with virtual assets that are determined by the Bank of Mexico through general provisions. To carry out operations with such virtual assets, they must have the prior authorization of the Bank of Mexico."

The text of Mexico's fintech bill has been circulating since this spring, focused on companies that provide "alternative means of access to finance and investment" – including those dealing with digital assets and cryptocurrencies. An earlier draft, released back in March, had reportedly contained rules focused on "institutions dedicated to the purchase and sale of virtual assets," though that language has now been dropped.

According to recent statements from Mexican President Enrique Pena Nieto, the legislation will be introduced by September 20. Reuters reports that it will first be considered by an independent commission, after which it will be sent to the Mexican Senate for further deliberation.

Agustín Carstens, governor of the Bank of Mexico, has previously stated that unless cryptocurrencies such as bitcoin are recognised by a bank or government, they do not meet the definition of a currency.

At a lecture at Mexican technical university ITAM in August, Carstens argued that "technological development in the financial system cannot be the result of innovation alone", but must occur in tandem with new regulations.

Mexican pesos image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.