Mexico Bans Crypto in the Financial System

Mexico Bans Crypto in the Financial System
  • Mexican official recapitulates a ban on the use of cryptocurrencies.
  • Herrara stated that cryptocurrencies are not legal tender belongings.
  • Three entities  iterated the warning they issued in 2014, 2017 and 2019.

On Monday a topmost Mexican official recapitulates a ban on the use of cryptocurrencies in the country’s financial system.

Mexico’s finance minister, Arturo Herrara stated that cryptocurrencies, not legal tender assets. And not treated as currencies within the country’s current regulatory framework.

Moreover, during a presentation to a global anti-money laundering group, Financial Action Task Force, Herrara said those prohibitions not expected to be lifted in a short period.

Henceforth, the announcement comes after a Sunday declaration by billionaire Ricardo Salinas Pliego, a noted bitcoin bull. Salina was working to make Banco Azteca the first bank to accept the cryptocurrency. He is the chairman of Grupo Salinas, the parent company for the bank.

Even more, the comment by Herrera, not completely linked to Salinas’s pledge. But it came within the hours of the businessman’s announcement’.

Accordingly, Herrera noted that his secretariat will publish a four-page communique that details the government’s position.

Furthermore, the document mentioned that financial institutions located in Mexico. They not authorized to deal with crypto belongings like Bitcoin (BTC), Ether (ETH), XRP ad so on.

More so, the three entities, the Central Bank of Mexico, the finance secretary, and the National Banking and Securities Commission have iterated the warning. They issued in 2014, 2017, and 2019 regarding crypto’s risks as a form of exchange, store of value, or another form of investment.

Hence more, the report added, “Financial institutions that conduct or offer operations with virtual assets without an authorization will violate the regulations and subject to applicable sanctions”.

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