New legislation is being introduced in Mexico that will push for the regulation and control of cryptocurrencies, as well as companies in the fintech industry. The two major reasons for this being to protect the customer and to prevent money laundering.
Well-known for its rampant drug trade, it is only logical that the government would see the burgeoning financial technology industry and blockchain technology as a threat to their ability to rule and regulate the flow of money within the country.
Mexico is not the first country that has attempted to regulate cryptocurrency. The US and UK have both implemented some forms of regulation or policy with the goal of controlling it, and China has recently announced a ban on cryptocurrency trading while they try to find a way to keep it under the government’s control.
Fintech companies and cryptocurrency solutions have a considerable market opportunity in Mexico. Over half of the 120 million population are without a bank account, meaning there is a lot of money on the table. When opportunities like this are available, it becomes even more necessary to protect consumers from ethically questionable companies looking for an edge.
The legislation being introduced explains how competition will work in the fintech industry and then pushes the regulation of companies operating with digital currencies onto the central bank.
Fintech is a rapidly growing industry and the huge population of under-banked citizens in developing countries such as Mexico, this is one of the clearest opportunities in terms of size and current development, and the fintech industry will likely spend a lot of money building themselves up in these countries.
Well-known for its rampant drug trade, it is only logical that the government would see the burgeoning financial technology industry and blockchain technology as a threat to their ability to rule and regulate the flow of money within the country.
Mexico is not the first country that has attempted to regulate cryptocurrency. The US and UK have both implemented some forms of regulation or policy with the goal of controlling it, and China has recently announced a ban on cryptocurrency trading while they try to find a way to keep it under the government’s control.
Fintech companies and cryptocurrency solutions have a considerable market opportunity in Mexico. Over half of the 120 million population are without a bank account, meaning there is a lot of money on the table. When opportunities like this are available, it becomes even more necessary to protect consumers from ethically questionable companies looking for an edge.
The legislation being introduced explains how competition will work in the fintech industry and then pushes the regulation of companies operating with digital currencies onto the central bank.
Fintech is a rapidly growing industry and the huge population of under-banked citizens in developing countries such as Mexico, this is one of the clearest opportunities in terms of size and current development, and the fintech industry will likely spend a lot of money building themselves up in these countries.