Mexico's central bank proposes regulation that could "ban cryptocurrency trading"

Mexico's central bank recently proposed new regulations for a recently enacted Fintech law that could "effectively ban currency cryptocurrency trading in the country" if they managed to make progress.

According to Coin Center, a not-for-profit crypto-currency rights research and advocacy company, the country's currency-based cryptocurrency purses would lose access to the local banking system through the new law, while being able to claim that it is not prohibited from trade.

According to the group, the Fintech law was supposed to open Mexico to innovation by allowing cryptographic exchanges to function while helping them become regulated institutions in the country. The changes that would be made would prevent financial institutions from offering exchange transmission or exchange services.

According to Coin Center, the proposal finds crypto-currencies too complex for average users compared to "mathematical and cryptographic processes underlying digital badets". She adds that their complexity, coupled with their volatility, poses a problem that needs to be solved by "putting consumers in direct contact with crypto quarantine," as Coin Center says.

Coin Center claims that, according to the reasoning of the central bank, the average citizen does not understand the operation of a car, but that this is not prohibited throughout the country. His message reads as follows:

An approach of "protecting" consumers by eliminating regulated exchanges is no different from failing to enact automobile safety standards for car manufacturers, but rather to prohibit people from buying a car and from allow only buses on the roads.

The cryptocurrency defense company further claims that imposing a general ban on cryptocurrency trading in the country will only require consumers to use exchanges based in other jurisdictions.

This could be "reasonably regulated by more forward-looking governments" or by "illicit transactions that are deliberately outside any regulatory jurisdiction". The decision of the central bank would only push Mexican enthusiasts of cryptocurrency into underground markets. this may not be as safe as those regulated.

Coin Center adds that there is a 60-day period during which the public can comment on the proposal. The group itself has revealed its intention to comment on it and hopes that "others will also help explain to the central bank why its approach would not only make it a special case of the industrialized countries, but would also harm the consumers it try to protect. well."

As CryptoGlobe says, the Kraken Cryptographic Exchange raised $ 3 million last year to support the cause of Coin Center.