Financial institutions in Mexico remind that cryptocurrencies are not legal in the country

June
29, 2021

4 min read

The Ministry of Finance (SHCP) , the National Banking and Securities Commission (CNBV) , and the Bank of Mexico (Banxico) recalled this Monday, June 28, that cryptocurrencies are prohibited in the Aztec country.

Through a joint statement, the financial entities explained that “virtual assets do not constitute legal tender in Mexico nor are they foreign currency under the current legal framework.” They also warned that banks that implement this type of instrument will be sanctioned.

“The country’s financial institutions are not authorized to carry out and offer to the public operations with virtual assets, such as Bitcoin , Ether , XRP and others in order to maintain a healthy distance between them and the financial system. Those who issue or offer said instruments will be responsible for the infractions to the regulations that this causes and will be subject to the applicable sanctions ”.

Banco de México, SHCP and CNBV warn about risks of using virtual assets https://t.co/zv3deZXyEa

– Bank of Mexico (@Banxico) June 28, 2021

This information was released a day after businessman Ricardo Salinas Pliego announced that Banco Azteca was preparing to accept operations with Bitcoin.

Through his Twitter account , Salinas Pliego, commented that Bitcoin is a good way to diversify money and added that Banco Azteca was working to bring the cryptocurrency to its clients and in this way continue to promote freedom.

#Bitcoin is a good way to diversify your investment portfolio and I think that any investor should start studying about cryptocurrencies and their future.

At @BancoAzteca we are working to bring them to our clients and continue promoting freedom pic.twitter.com/bZ51FB2vKw

– Ricardo Salinas Pliego (@RicardoBSalinas) June 27, 2021

It is important to remember that the Fintech Law in Mexico, Banxico, is the institution that must authorize banks or financial entities interested in carrying out operations with this type of digital currency.

Can we or can we not use cryptocurrencies in Mexico?

In the statement, financial entities explain that cryptocurrencies are assets with a “very volatile” value and also “are considered speculative.”

For this reason, they add that although they can be exchanged, they do not fulfill the functions of money, since their acceptance as a means of payment is limited and they are not a good reserve or reference of value.

What about stablecoins ?

Organizations that want to carry out operations with stablecoins , such as “MMXN” or “Moneta”, that are backed by legal tender must have the corresponding permits.

“In the event of deciding to use the technological infrastructure of a virtual asset to offer these issuance services, it must have the authorization of the law that allows the corresponding capture, as well as the authorization of the Bank of Mexico to use these assets in the internal operation. of the institutions. All this so that its use entails benefits for users and for the financial system as a whole ”.