According to Reuters, seemingly spooked by the growth and publicity of the bitcoin, Central bank and Finance industry of Mexico has warned the consumers that the initial coin offerings violated the law and announced that cryptocurrencies are risky investments.
As the statement that, Mexico has not accepted cryptocurrencies as a legal form of payment, CNBV which is the country’s securities regulator has joined other government authorities. The statement further pointed there have been no ICOs to originate in Mexico.
Government Alert Of Fraud
The statement points that, based on some characteristics, certain ICOs that originated in Mexico, may violate the Markets and Securities Law and thereby creating a financial crime. The authorities further say that only the seasoned investors should test with cryptocurrencies and also added that they should be on the observation for signs of fraud.
The statement also said that the cryptocurrencies have been introduced as highly changeable and are subject to extensive hazardous.
The bitcoin has reached a new record in this week which caused the break down of trading services and creating questions about the authenticity of cryptocurrency platforms.
Heavy trading activity caused the break down of Coinbase on Tuesday while Bitfinex had to deactivate its website due to “junk” online requests.
The government previously released the rule that not to make bitcoin legal tender since it is not regulated by a central bank.
Lawmakers Seek Regulation
The government of Mexico has proposed a bill recently, to control companies that interact with bitcoin and other cryptocurrencies, along with the broader financial technology sector.
According to El Economista, the legislature is not planning to control bitcoin and cryptocurrencies themselves. The bill is aimed at the companies that operate within the digital currency ecosystem.
The bill will not be including the specific details of the bitcoin regulations. It will be giving the central bank broad authority to regulate companies operating within this space. However, it denounces that, the rules will steer transformation and competition by establishing a clear operational framework.
The bill is mainly focused on money launderers and terrorist organisations that allegedly use cryptocurrency to circumvent the law. Mexico’s approach is much more peacemaking than that of China, which issued a blanket ban on ICOs and has begun to shutter bitcoin exchanges.
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