The Mexican government has been hesitant to enact new laws regulating cryptocurrencies due to fears of “damage” the financial system. In recent months, these fears have led Mexico’s central bank to ban bitcoin ATMs and cryptocurrency-related advertising through social media platforms like Facebook and Twitter. However, this is not stopping people from wanting a piece of the action
There is no law to regulate bitcoin for fear of “damage” to the financial system in Mexico. It has been said that this is due to a lack of understanding, and it is possible that this could be fixed in the future.
For fear of “harm” to the financial system, there is no regulation in Mexico to control bitcoin.
Facts to remember:
The Bitcoin Forum, held by the Mexican Senate, drew cryptocurrency aficionados.
Experts think that in order to regulate bitcoin, there has to be a dialogue between users and authorities.
Fear, ignorance, and ambiguity are factors that have hindered Mexico from developing a legal framework for bitcoin (BTC) and its ecosystem, which creates gaps between society and the digital economy.
Vanessa Sols Caballero, an accountant and bitcoin enthusiast, suggests this. According to her, Mexican authorities are concerned that a regulatory framework may endanger or destroy the country’s financial sector, which he claims will not occur.
“There are instances when a rule may or may not be harmful to the financial system,” Sols remarked. He said, “We want measures to know how to function with digital assets.”
Solis, who spoke at the Senate of Mexico’s Fintech Law and the Role of Regulators of the Bitcoin Forum, said that, although the aforementioned legal document and others linked to taxation exist in his country, there is no clear guidance on the usage of cryptocurrencies.
The Mexican Fintech legislation, according to Rebeca Lvarez, is inadequate. Facebook is the source of this information.
He commented, “There is ignorance, anxiety, and uncertainty, and that is why distance is established.” “However, there are nations that have developed regulatory frameworks without having to damage the financial system,” he said.
As a result, it is essential to adapt existing laws to the new economy.
“We are in regions of ambiguity, and we want clarity, which will be delivered by the laws, which will be enforced by everyone.” We support decentralization, but those who are doing things correctly, such as avoiding laundering money and leveraging assets to enhance transactions via technology, want to standardize but don’t know how.”
Vanessa Sols Caballero is a bitcoin enthusiast and accountant.
Fintech legislation alone is insufficient.
The panel also included Rebeca Lvarez, managing partner of the Loxical legal company, which specializes in innovative technology. She claims that the Bitcoin ecosystem is “systematic” in Mexico, and that the Fintech legislation is “insufficient” since it does not cover the complete cryptographic spectrum.
He explains that the policy, which he calls paternalistic, was predicated on protecting users from firms and minimizing hazards for individuals who pay and consume using new technologies in the beginning.
However, if there is a significant increase in the use of these assets in the Central American country, the lawyer urges the authorities to participate in the discussion about how to regulate their use. “It is critical that there exist lawmakers, public officials, and judges.” “The Mexican judicial system cannot operate without these three aspects,” he cautioned.
“We encourage a discussion to build lawmakers’ trust in this technology.” “Without this problem, we won’t be able to go on,” she said. “It’s also important to develop clear, wide, adaptable terms that align with cryptocurrency business models,” he said.
Legal reform is still going on.
What the market enthusiasts said contradicts Mexican senator Indira Kempis’ plan for a comprehensive monetary legal reform, which would include, among other things, the conversion of bitcoin to legal money. She made the statement at the Bitcoin Conference 2022, and she subsequently confirmed it in an interview with LogitechGamingSoftware.
The politician offered many legislation reform suggestions on April 6, but none of them included bitcoin or any other digital asset. In particular, it was a monetary law change and, as Kempis pointed out, a preliminary step toward presenting the Bitcoin Law.
However, in order to take use of the technology for this new sort of money, the Central Bank of Mexico suggested launching a central bank digital currency (CBDC) as soon as 2024.
As a result, the discussion in Mexico is still open, and all that remains is to wait and watch how events unfold, to see whether the CBDC’s centralization triumphs over Bitcoin’s advantages, or if, on the contrary, decentralization triumphs.
In Mexico, there is no law to regulate bitcoin for fear of “damage” to the financial system. This means that people who use bitcoin in Mexico are not required to pay any taxes on their cryptocurrency transactions. Reference: mexico cryptocurrency tax.
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