Mexico warns of Bitcoin brokers operating in the country

In yet another alert to the financial market, the Secretary of Finance of Mexico made an alert to the performance of Bitcoin brokers. The country is concerned about money laundering in the territory, which could benefit from the use of these platforms.

It’s worth noting that Mexico’s second-richest man, billionaire Ricardo Salinas Pliego, founder of Banco Azteca, is an avowed Bitcoin enthusiast. According to him, who have 10% of their equity in BTC, his bank works to offer financial services with this technology.

However, after Salinas’ speech, Mexico issued a statement last June against Bitcoin, accusing the currency of having no intrinsic value.

“Therefore, they are generally assets with a very volatile value and considered speculative. Although they can be exchanged, they do not fulfill the functions of money, as their acceptance as a means of payment is limited and they are not a good reserve or reference of value.”

After acting against the currency, companies in the market would now be in the crosshairs of local authorities.

Mexico’s Finance Secretary advises that Bitcoin brokers must act in accordance with local law

Bitcoin brokers are nothing more than platforms that bring buyers and sellers together. So, for many people in the market, this is a practical way to purchase a particular cryptocurrency, which can offer traders more liquidity.

Even so, these companies must follow the laws of the countries in which they operate, according to a new public statement from the Secretary of Finance of Mexico, which reminded Bitcoin brokers operating in the territory to seek legal status.

Without mentioning the name of any company, the alert asks brokers to report their operations until the 17th of the month following the provision of services.

“I refer to the obligation provided for in item VI of article 18 of the Federal Law for the Prevention and Identification of Operations with Illegal Resources (LFPIORPI), according to which anyone who carries out Vulnerable Activities under the terms of item XVI of Article 17 thereof Law, must submit Communications on the acts or operations that they practice, no later than the 17th of the month following the month in which said acts or operations are carried out.”

The alert is valid for brokers that trade Mexican cryptocurrencies even if they are based in foreign countries. In other words, any operation that operates in Mexico, with the intermediation of Bitcoin or any currency, must report its operations to the local Ministry of Finance, as required by law.

Thus, the government of Mexico seeks to regulate the sector that is one of the top ten in Latin America.