Mexican Senate to Vote on Bitcoin Regulations
By Josiah Wilmoth
The Mexican legislature will vote on a bill intended to regulate businesses that operate within the bitcoin and financial technology (fintech) ecosystem.
As reported by Spanish-language news service El Economista, the Mexican Congress will take up a bill that seeks to create a regulatory framework for fintech firms, including those that engage with bitcoin, ethereum, and other cryptocurrencies. Due to the nature of the Mexican legislative process, this bill does not include specifics about what regulations the government will implement; rather, the details will be hammered out with so-called “secondary laws.”
An earlier draft of the bill took a more-comprehensive approach to bitcoin regulation, targeting bitcoin exchanges and other avenues people use to buy and sell cryptocurrencies. However, the government ultimately decided to limit the regulations to the operations of the fintech firms themselves. That said, the Bank of Mexico will have broad authority to supervise these companies.
The legislature asserts that this framework will help create a dynamic and competitive financial services marketplace within Mexico, an emerging economy with more than 60 million unbanked citizens. From a translation of the bill:
“This (legislation) recognizes the need that a sector as dynamic as that of technological innovation needs a regulatory framework that allows authorities to mitigate risks and allow for growth in a competitive environment.”