Cryptocurrencies are not allowed to be used in the financial system – regulation Bitcoin News

Mexico’s central bank, treasury and banking regulators have jointly issued a warning about cryptocurrency. Finance Minister Arturo Herrera emphasized that the use of cryptocurrencies is prohibited in the Mexican financial system.

  • The Central Bank of Mexico, the Treasury Secretary and the National Banking and Securities Commission (CNBV) said in a joint statement Monday that crypto assets are not legal tender in Mexico and are not considered currency under applicable laws.
  • The regulators warned that financial institutions working with them are subject to sanctions.
  • In its statement it says: “The tax authorities reiterate their warnings … about the risks associated with the use of so-called ‘virtual assets’ as a medium of exchange, as a store of value or as another form of investment.” It adds:

The country’s financial institutions are not allowed to conduct operations with virtual assets such as Bitcoin, Ether, XRP and others and offer them to the public in order to maintain a healthy distance between them and the financial system.

  • The statement also warns that cryptocurrencies tend to be volatile and speculative assets, noting that they do not perform the same function as money “since their acceptance as a means of payment is limited and they are not a good reserve or reference of value”.
  • In addition, the use of stablecoins is not permitted under applicable Mexican law.

  • At a press conference on Monday, Reuters told Mexican Finance Minister Arturo Herrera:

Current regulations prohibit the use of cryptocurrencies in the Mexican financial system, which underscores that the ban is unlikely to change in the near future.

  • The authorities’ statements came after Mexican billionaire Ricardo Salinas Pliego said on Sunday, “I recommend using Bitcoin, and I and my bank are working to be the first bank in Mexico to accept Bitcoin.”
  • Luis Gonzali, co-director of Franklin Templeton Investments in Mexico, believes the regulator’s statement was “a response to the comments.” [of] Salinas Pliego “, remarked:” With that one can say that his bank cannot accept bitcoins, although he wants to … it is a way to put an end to him. “

What do you think of Mexico’s approach to regulating cryptocurrencies? Let us know in the comment section below.

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