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Government of Mexico Reminds Crypto Exchanges to Report Transactions

source-logo  cryptoknowmics.com  + 1 more 24 August 2021 09:55, UTC

The government of Mexico has issued a reminder to crypto exchanges in the country to report their transactions by September 17. Institutions dealing in digital assets are required to present relevant data in compliance with the Federal Law For The Prevention And Identification Of Operations With Illicit Resources.

Mexico Asks Local and Foreign Crypto Exchanges to Submit Transaction Data

Mexican authorities have recently published a notice asking local and foreign virtual asset service providers (VASPs) to submit their transaction data. As per the reporting requirements, institutions have to provide their details to the country’s anti-money laundering agencies and report all crypto transactions of over $87,000. Exchanges have time until September 17 to fulfill these demands. 

The latest reporting obligations are part of article 17 of the Federal Law For The Prevention And Identification Of Operations With Illicit Resources (LFPIORPI), which characterizes cryptocurrency exchanges as vulnerable and necessitates communication of transaction information. According to the notice:

“Whoever offers virtual asset services in terms of section XVI of article 17 of the LFPIORPI is subject to comply with the obligations set forth in said law, among them, the presentation of the corresponding notices, even when the technological infrastructure with which it offers such services is in the jurisdiction of another country or are offered by companies incorporated in another country.”

Mexico’s Record With Crypto Compliance

Mexico is one of the few countries that have a stellar record in implementing FATF’s (Financial Action Task Force) standards. The country is wholly compliant with 8 out of 40 recommendations and largely compliant with another 22 recommendations. In a June report, the FATF observed that Mexico has taken several measures to enhance its framework since the last assessment in 2018:

Mexico has been in an enhanced follow-up process following the adoption of its mutual evaluation in 2018. In line with the FATF Procedures for mutual evaluations, the country has reported back to the FATF on the action it has taken since then.”

Regulators in the country have been increasingly skeptical of virtual assets and their impact on the financial system. In June, Mexico’s Central Bank issued a joint statement with the finance ministry and the National Banking and Securities Commission (CNBV) warning people that banks in the country are prohibited from dealing in cryptocurrencies and the prohibition is unlikely to change in the future.


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