MEXICO CITY, June 28 (Reuters) – Mexican monetary authorities on Monday stated that crypto property are usually not authorized tender in Mexico and are usually not thought-about currencies underneath present legal guidelines, warning that monetary establishments that function with them are topic to sanctions.
The joint assertion by the Financial institution of Mexico, finance ministry and banking regulator comes after Mexican billionaire Ricardo Salinas Pliego on Sunday stated his banking enterprise, Banco Azteca, might start utilizing bitcoin, which might make it the nation’s first financial institution to begin accepting the cryptocurrency. read more
Earlier this month, El Salvador made a dramatic transfer to make bitcoin a authorized tender, a world first. read more
“The monetary authorities reiterate their warnings … on the dangers inherent in the usage of so-called ‘digital property’ as a way of trade, as a retailer of worth or as one other type of funding,” the assertion stated.
“The nation’s monetary establishments are usually not licensed to hold out and supply to the general public operations with digital property, reminiscent of Bitcoin, Ether, XRP and others with the intention to preserve a wholesome distance between them and the monetary system.”
Mexican monetary establishments should additionally keep away from transmitting to their purchasers the dangers related to cryptocurrency operations, the assertion stated, including that the usage of so-called stablecoins – a type of cryptocurrency normally pegged to a conventional foreign money – was not permitted underneath present Mexican legislation.
Finance minister Arturo Herrera stated at a information convention that underneath present guidelines cryptocurrencies are prohibited from getting used within the Mexican monetary system, underscoring that the prohibition will doubtless not change within the close to time period.
Cryptocurrencies are usually unstable and speculative property and whereas they are often traded, they don’t serve the identical perform as cash, “since their acceptance as a way of fee is restricted and they don’t seem to be a very good reserve or worth reference,” stated the assertion.
Reporting by Anthony Esposito and Abraham Gonzalez; writing by Laura Gottesdiener; enhancing by Jonathan Oatis
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