It looks like Mexican government and banking regulators are looking into bitcoin regulation. The initiative would be part of Mexico’s new FinTech law that aims to bring the country into the cryptocurrency era among others. Bitcoin regulation in Mexico will focus on the actors dealing with bitcoin and cryptocurrency instead of focusing on the digital assets themselves. The aim is to prevent scams, money laundering schemes and protect consumers from other unforeseen risks. This type of bitcoin regulation that the Mexican authorities are striving for, could have a variety of effects on cryptocurrency markets.
Mexico Takes Bitcoin as a Market Reality
It seems that the Mexican government is taking bitcoin and other cryptocurrencies as a market reality. Therefore, the kind of regulation they are proposing could well benefit the bitcoin and cryptocurrency ecosystems in Mexico. It could also create a clearer environment that would lead to greater adoption within the country. That would have a positive effect on the prices of bitcoin and other cryptocurrencies, especially given the fact that Mexico is the second biggest economy in Latin America.
Bitcoin Regulation in Mexico and the Japan Effect
If bitcoin regulation in Mexico somehow resembles the kind Japan just implemented, then markets can expect further upward pressure in bitcoin prices. Nevertheless, if bitcoin regulation in Mexico somehow resembles the kind that New York state implemented, it might stifle the growth of the bitcoin and cryptocurrency ecosystem in this country. This wouldn’t necessarily affect the price of bitcoin. Nevertheless, it seems that bitcoin regulation in Mexico will try to avoid stifling the ecosystem precisely because it will be part of a wider effort to encourage the growth of FinTech as a whole.
Mexico Takes the Lead in Latin America
This means that bitcoin regulation in Mexico seems to be heading in a diametrically opposed direction than bitcoin regulation elsewhere in Latin America. The attitude of the Mexican government towards bitcoin is completely different than that of the Colombian government for example, which has outlawed the use of bitcoin altogether. The Mexican government seems to be basing itself on sound market principles, unlike the Venezuelan government, which has effectively choked the markets and has sought to crack down on bitcoin miners.
A Step in the Right Direction
In the meantime, reports and government declarations to the media seem to augur a positive outcome from this regulatory effort in Mexico. It seems that unlike its Latin American peers, Mexico is keen on embracing the technology and the market advantages it brings. The only thing left to do is for bitcoin advocates to plead their case and try to exert the maximum amount of influence they can on bitcoin regulation in Mexico. Other than that, it seems Mexico is on the verge of taking a step in the right direction.