Mexican central bank's proposed regulations said to kill crypto industry

25 Mar, 2019 | Updated: 25 Mar, 2019
by Fifi Arisandi
Mexican central bank's proposed regulations said to kill crypto industry

The central bank of Mexico, Banco de Mexico is reported to have proposed new regulations to add on the country’s new fintech laws.

While the proposed regulations don’t mention anything about banning crypto industry players, according to Coin Center, they eventually would kill the industry they will disallow banks from providing financial services, such as transmission and custody services to crypto industry players.

Still according to the Washington-based non-profit research and advocacy center, the proposal regards “the mathematical and cryptographic processes that underlie digital assets”, such as cryptocurrencies are too complex for average users.

Added to that is crypto’s volatile nature, which should be handled by “quarantining consumers from direct contact with crypto”, as reported by Crypto Globe.

Coin Center thinks that the reasoning doesn’t make any sense at all, arguing that an average person also doesn’t understand how a car works, but cars are not banned in the country.

Quoting their official statement, "An approach of “protecting” consumers by eliminating regulated exchanges is no different than failing to promulgate automobile safety standards for car manufacturers and instead prohibiting people from buying cars in the first place and allowing only buses on the roads."

Moreover, the advocacy center said that if the proposal is approved, it would only make Mexican crypto enthusiasts to go into “underground markets”, that are even less safe than the regulated ones.

With a 60-day period for the public can give comments on the proposal, Coin Center expects to be able to raise awareness about the matter by taking a pioneering commenting action to the proposal.

How will the Mexican crypto regulation turn out? Stick with Chepicap for updates.

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Read more about: Mexico Bitcoin (BTC)

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