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- Mexican government officials have issued a warning to virtual asset service providers (VASPs)
- This material must be delivered to the regulators by September 17, according to the reminder
- Mexico is one of the countries that has enacted stringent crypto-related legislation
The Mexican government has reminded virtual asset service providers (VASPs) of their obligation to disclose bitcoin transactions. According to the paper, these institutions must provide a report of all transactions over a certain value threshold by September 17. The Federal Law For The Prevention And Identification Of Operations With Illicit Resources establishes all of this.
VASPs are reminded by Mexico
The Mexican government has reminded virtual asset service providers (VASPs) of their need to disclose certain transactions involving their customers to the country’s anti-money laundering agencies. These businesses must submit all relevant information related to consumer transactions totaling more than $87,000. This material must be delivered to the regulators by September 17, according to the reminder.
Section XVI of Article 17 of the Federal Law For The Prevention And Identification Of Operations With Illicit Resources (LFPIORPI) has these responsibilities, which identifies bitcoin exchange services as a vulnerable activity that should be notified. Even exchanges that serve Mexican clients, even though they have no offices in the country, are subject to this responsibility. The notice stated this in this way.
Even if the technological infrastructure with which it offers such services is in the jurisdiction of another country or is offered by companies incorporated in another country, anyone who offers virtual asset services in accordance with section XVI of article 17 of the LFPIORPI is subject to the obligations set forth in said law, including the presentation of the corresponding notices.
Cryptocurrency Regulation in the United States
Mexico has adopted stringent crypto-related rules and is one of the countries that have advanced in applying the Financial Action Task Force (FATF) requirements for virtual sets. Following the adoption of its mutual evaluation in 2018, Mexico has been in an enhanced follow-up process, according to the FATF. The country has reported back to the FATF on the actions it has taken since then, in accordance with the FATF Procedures for Mutual Evaluations.
Mexico, according to the institution, complies with 8 of the 40 FATF recommendations and is largely compliant with 22, making it one of the FATF’s most compliant countries. Mexico’s Finance Minister announced on June 29 that cryptocurrencies are prohibited from being utilized in the country’s financial system, reiterating the country’s stance on cryptocurrency.