Mexico Congress approves bill regulating cryptocurrency and crowdfunding

Mexico Congress approves bill regulating cryptocurrency and crowdfunding

Mexico’s Lower House of Congress [official website, in Spanish] approved [vote record, in Spanish] a bill [text, PDF, in Spanish] Thursday that would place regulations on crowdfunding and cryptocurrency firms.

The bill previously passed [Reuters report] the senate and still needs to be signed by the President.

The bill is meant to “promote financial stability and prevent money laundering.” The law is currently in general form, with the expectation that regulators will begin drafting “secondary laws” which will provide more details to the industries. The law will permit “sharing of user information by financial institutions through public application programming interfaces.”

The bill would allow [Bitcoin report] the Bank of Mexico to give consent to Financial Technology Institutions in order to operate with cyrptocurrencies. This would give the Bank of Mexico the authority to decide which cryptocurrencies will be allowed to be listed in exchanges. The exchanges will have one year to comply.

Regulation of cryptocurrencies have gained more attention in recent years. Singapore’s central bank announced [Reuters report] on Thursday that it is exploring the need to regulate cryptocurrencies. Japan’s cyrptocurrency exchanges have also set up a self-regulatory body in February.