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So, a guy walks into a bar –and in this case, stumbles upon not just any bar—an historic western saloon on the old frontier with original artifacts displayed throughout.
The Trump administration is hitting more than 50 vessels, shipping companies, and trade businesses with sanctions in the latest bid to turn up the pressure on North Korea over its nuclear program, a senior administration official said Friday. President Trump was set to announce the action at the Conservative Political…
Mexico’s bill to regulate fintech institutions including cryptocurrency exchanges is expected to become law within “weeks,” according to local crypto exchange ISBIT. Daniel Luévano, the exchange’s director of operations, shared with news.Bitcoin.com what to expect from the new law, citing a leaked document he obtained from the recent meeting of regulators.
Changing Mexico’s Crypto Landscape
Mexico’s Chamber of Deputies will soon vote on the bill to regulate the country’s fintech institutions including cryptocurrency exchanges, which the Senate has already approved.
The bill “establishes a regulatory framework that regulates the platforms (called Financial Technology Institutions or ITFs)” which includes crypto exchanges, the document states. “The bill recognizes two types of ITFs: collective financing institutions and electronic payment fund institutions.”
News.Bitcoin.com (BC): Does the bill legalize bitcoin and other cryptocurrencies?
Daniel Luévano (DL): Bitcoin and other cryptos will not be legal tender. However, ITFs that the Bank of Mexico gives consent [to] will be allowed to operate with them.
BC: Can people legally use cryptocurrencies to pay for goods and services?
DL: Yes, they can!
BC: What are the most important changes brought about by the bill?
DL: Financial institutions will be able to operate with virtual assets, but also, they are allowed to invest in ITFs. ITFs will be constantly audited; everything must be transparent to regulators and consumers. AML/CFT [anti-money laundering/combating the financing of terrorism] practices will be a really important requirement for exchanges.
BC: What major changes to the existing Mexican crypto ecosystem will result from the bill?
DL: Changes in the Mexican financial ecosystem? Huge ones.
ITFs will be considered just as important as banks. All trade finance companies will be operating with them.
Only 44% of people in Mexico have a bank account, while the rest only use cash. The amount of money and transactions that can migrate to crypto and its technology is huge.
Licensing & Approved Crypto
BC: What is the role of the Bank of Mexico with respect to the crypto market going forward?
DL: They are more than open to keep new technologies [and] strengthen the Mexican financial ecosystem. They don’t want to lose control of things they still don’t understand widely, that’s why the Bank of Mexico will decide which virtual assets can be operated in the Mexican territory.
BC: Are crypto exchanges now required to get a license from the Bank of Mexico? What kind of authorization do they need?
Yes, now we will have an authorization as an ITF. But this is positive, because now all the financial institutions have permission to work with the now-called ITFs. Mainly, the authorization depends on how strong your security is, and several KYC [know your customer] and AML/CFT practices an exchange should have.
BC: Are there restrictions on what cryptocurrencies are approved in the bill?
DL: The Bank of Mexico will decide which ones [cryptocurrencies] are allowed to be listed on the exchanges.
They will decide according to Article 30 [which states that] “Bank of Mexico will take into account, among other characteristics, the public acceptance (its use, the trade of it, the storage, and the volume of transaction), other jurisdictions’ acceptance, other agreements, mechanisms, rules or protocols that allow to create, identify, partition, and control the replication of these assets.”
BC: What are the penalties for non-compliance?
DL: The penalties are applicable only for the ITFs in case they don’t comply or they don’t follow the law. If you don’t have the authorization, the penalty is from 30k UMA to 150k UMA, according to Article 104 I. 1 UMA (Unit of Measurement and Update) = 80.6 MXN = 4.27 USD.
BC: When will this bill become law? And how long do exchanges have to comply?
DL: The bill will become law in the following weeks, as soon as the Chamber of Deputies votes for it.
Exchanges will have one year to comply.
What do you think of Mexico’s regulations for crypto exchanges? Let us know in the comments section below.
Images courtesy of Shutterstock and Isbit.
Need to calculate your bitcoin holdings? Check our tools section.
The post Sneak Peek: Mexico’s Regulations for Crypto Exchanges Expected in ‘Weeks’ appeared first on Bitcoin News.
Oprah, Mindy Kaling and Reese Witherspoon know the drill — a pilgrimage to Disneyland’s a must anytime you’re in a Disney film. The stars — along with Storm Reid — surprised a bunch of “A Wrinkle in Time” fans Thursday at The Happiest Place…
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WSJ.com: What’s News Europe
A tourist pulled from the wreckage of a fiery helicopter crash in the Grand Canyon died from his injuries Thursday, per Nevada authorities. The Clark County coroner confirmed in a statement that 31-year-old Neil Udall (also IDed as Jonathan Udall ) died at University Medical Center of Southern Nevada, the…
Bad news for Russian hopes of marching under their own flag: The BBC reports that the Russian Bobsleigh Federation says Nadezhda Sergeeva, 30, has tested positive for a banned heart drug. Sergeeva, the second Russian to test positive for a banned substance, placed 12th in the two-woman bobsleigh event on…
Venezuela’s president Nicolas Maduro has authorized all savings banks in the country to mine and use the recently launched national cryptocurrency, the petro. Union leaders are outraged by the suggestion, calling the petro a scam, accusing Maduro of abusing his power, and declaring the idea unconstitutional.
Savings Banks Asked to Mine & Use Petro
Maduro has “authorized all savings banks in the country to join the cryptocurrency production system and acquire the petro to contribute the benefits to their workers,” according to the government’s website. He explained that:
The proposal came after several meetings held by the superintendent of the Venezuelan cryptocurrency, Carlos Vargas, with more than 1,400 savings banks in the country.
His announcement, which was broadcasted nationwide, proposes that “savings banks could develop mining farms throughout the national territory to increase the benefits for more than six million workers,” the website states.
According to Maduro, savings banks can mine the cryptocurrency using the state-provided petro container.
Union Leaders Outraged
Following the president’s announcement that savings banks could “develop mining farms” and “acquire petros for [their] workers”, El Nacional reported on Thursday that “Union leaders rejected the use of the petro in savings banks.”
Ana Yanez, the national coordinator of the National Union of Workers (Unete), told the publication that “there is a total disagreement within the union regarding the use of cryptocurrencies in savings banks.” Citing that everything “imposed by the Executive to the workers is null and void for the unions,” he detailed:
That seems to us an abuse of power and a totalitarianism. In addition, it [the petro] is a virtual currency that violates the Constitution. As workers, we disagree that this cryptocurrency is imposed on us.
Servando Carbone, the national coordinator of the National Federation of Public Sector Workers (Fntsp), told the news outlet that “the petro is a scam,” and they “strongly reject the use of cryptocurrencies in savings banks.”
He added that “the petro is an invention of the government to launder drug money” and warned that “if they are forced to use the petro, they will go out to the streets to protest,” the news outlet conveyed.
Furthermore, the secretary general of the union representing oil workers in Falcon state, Iván Freites, showed his disapproval for the petro, “mainly for the use of oil reserves to sustain it,” the publication noted and quoted him explaining:
We who are oil workers know what the cost of bringing a barrel of oil means. That [Marudo’s action] is a dictatorial measure that is taken against the Venezuelan workers.
Do you think savings banks should mine and use the petro? Do you think Maduro will force them to? Let us know in the comments section below.
Images courtesy of Shutterstock and the Venezuelan government.
Need to calculate your bitcoin holdings? Check our tools section.
The post Maduro Asks Venezuela’s Banks to Mine and Use Cryptocurrency – Unions Outraged appeared first on Bitcoin News.