Mexico Crafting a Law To Regulate Financial Technology, Cryptocurrency

Mar 05, 2018 at 11:19

Mexico’s lower house of Congress approved a bill that is set to regulate the financial technology sector in the country that will also address both crowdfunding and cryptocurrency regulations.

According to a report from Reuters, the bill seeks to promote financial stability and prevent money laundering and has already been approved by Mexico’s Senate back in December. It was crafted in general terms and regulators are expected to draft secondary laws to place essential details for companies dealing with cryptocurrencies.

At present, the bill only needs the signature of President Enrique Pena Nieto to finally become a law that will give fintech companies greater regulatory certainty especially on issues such as cryptocurrency-related rules, payment methods and crowdfunding.

The law is also expected to allow sharing of user information by financial institutions through public application programming interfaces (APIs). When enacted, financial institutions will also be able to use client information from large banks through APIs, as long as the users agree.

“Open banking recognizes that the information in the hands of the financial institutions is the property of the user, not the institution’s and that it can be brought to other financial intermediaries” Francisco Mere, president of the association Fintech Mexico, said in a statement.

He also claimed that the law will allow better services, better costs and more inclusion as it will enable new players to compete with traditional banks.

Last year, Mexico was already working on legislature to regulate companies that interact with bitcoin and other cryptocurrencies aside from regulatory framework to mitigate risks in the industry.

Aside from Mexico, several countries including the Philippines are already working on cryptocurrency and initial coin offering regulations. Despite the said progress, the United States revealed before that cryptocurrency regulations won’t come any time soon.