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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:
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:
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.