Around the globe, governments are cracking down on unregulated crypto exchanges in a bid to make the space safer for citizens and to keep tabs on taxes owed. The latest country to implement new laws for crypto exchanges is Mexico. The country has been battling illicit uses of cryptos for some time, as they continue to fuel the cartels power to roam free and wage wars with other cartels.
The new laws state that any crypto exchange looking to operate in Mexico must obtain a permit from Banxico. However, while the permit appears easy enough to get, there is number of hoops that all exchanges will need to jump through.
Jumping Through Hoops
Any bank or crypto exchange looking to provide crypto related services in Mexico must have applied for the new permit before September 11th. Otherwise, they will have to wait until the next wave of fintech regulations come into place during March 2019. In order to be eligible for the new permit, banks, and exchanges must provide a detailed business plan, explaining their KYC process and provide a complete list of charges or commissions. In addition to this, users who create accounts with banks or exchanges are not allowed access to crypto markets for 24 hours – this means that gaining instant access to the crypto markets in Mexico is now a thing of the past. These new checks and regulations have been put in place to help Mexico stamp out illicit uses for cryptos and to help prevent money laundering from occurring.
Malta Still Leading the Way
When it comes to implementing regulations, Malta is currently leading the way. Despite its tiny size, it is gunning to become the blockchain capital of the world, and its blockchain regulations have attracted scores of big names from the industry. Recently, Binance joined BitStarz in Malta and so too did a number of other big names. Malta has implemented three crypto friendly laws and the University of Malta has even created a blockchain scholarship to educate the next generation of blockchain enthusiasts.
Fringe Countries Joining the Revolution
There are a number of countries joining the crypto revolution that were previously not well known in the space. South Africa recently introduced tax laws for crypto companies and North Korea is even planning its own blockchain conference. It just goes to show that there are countries that aren’t currently on the crypto radar yet that are working on huge crypto projects for the future. These new countries joining the crypto revolution are helping to create the initial framework that larger countries will then improve upon and adopt.
While Mexico’s new rules might make trading cryptos a little more difficult and troublesome for Mexicans, it will make the crypto space safer and more regulated overall. In March 2019, Mexico is set to launch a raft of new laws and legislations that will put the country on the blockchain map with a bang.