Banxico: FinTech Law paving the way to cryptocurrency

Currently, FinTech law is pending the Senate's approval
A bitcoin ATM machine. The device enables the user to convert cash to bitcoins via a QR code transfer to an application on their mobile device – Photo: Mike Blake/REUTERS
23/11/2017
15:20
Antonio Hernández
Mexico City
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The Financial Systems Director at Bank of Mexico (Banco de México abbreviated Banxico), Jesús Alan Elizondo Flores, said that the Law Regulating the Financial Technology Institutions (FinTech Law), proposes that banks and electronic payment establishments will operate virtual assets, such as the bitcoin, among other cryptocurrencies.

Elizondo Flores explained that once the FinTech Law is approved, Banxico will define cryptocurrency operation and it will issue regulations on the use of virtual currencies.

If the FinTech Law is approved in its current terms, the companies that operate in this industry will be more strictly regulated compared to other Non-Banking Financial Companies (NBFC) that have been operating in the Mexican market for years.

According to the bill draft, “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.”

Currently, FinTech Law is pending the Senate's approval.

Financial technology (FinTech) is the new technology and innovation that aims to compete with traditional financial methods in the delivery of financial services through the use of smartphones for mobile banking and investing services which seek to make financial services more accessible to the general public.

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