Cryptocurrencies

Mexico’s central bank plays it safe by issuing new rules for crypto exchanges

The Bank of Mexico has issued a series of new rules that directly affect crypto exchanges and people who use these platforms to trade cryptocurrency.

The central bank published a two-page document asking financial institutions and businesses that use the Mexican Interbank Electronic Payments System (SPEI) to refrain from opening bank accounts for crypto exchanges. They also asked SPEI participants to delay by one working day all crypto-related transactions.

Response to attack?

The new regulations come on the heels of a cyber attack that the Bank of Mexico says will take up to six months to resolve. The attack hit at least six banks, although no details on its extent have been revealed.

A few weeks ago, Bitso, one of Mexico’s largest crypto exchange with 500,000 users, was also hacked, but no resources or assets were stolen.

SPEI and SWIFT

The SPEI is similar to SWIFT, an international payments systems that connects about 11,000 financial institutions in 200 countries. The SPEI operates solely in Mexico and connects around 100 banks, financial institutions and exchanges.

“The purpose of the new rules is to ensure the proper operation of the Interbanking Electronic Payments System (SPEI),” the central bank said.

“Also, to strengthen the policies and security controls in the transfer of funds through the system.”

No bank accounts

Liliana Flores, a Bank of Mexico analyst, told Coin Rivet that in essence the Bank of Mexico is recommending banks using SPEI refrain from allowing crypto exchanges to open accounts with them.

Background checks

Banks are also now required to ensure background checks on all their staff as well as security checks on all their tech service providers. Moreover, they must comply with rules that require them to formally appoint a security officer, who is to be responsible for designing, implementing and verifying risk prevention policies as well as the implementation of corrective measures in case their SPEI system is under any risk.

Reactions

Various crypto exchange executives have reacted to the new rules, saying the new requirements will make crypto trading that much more difficult.

Volavit General Director Tomas Alvarez suggested the new rules come as a surprise to crytpo exchanges such as his.

He said: “The impact may not be that huge, but people wanting to deal with Bitcoin, for example, will have to wait longer to do so.”

Olivier Acuña

Olivier has been writing for over 30 years. He has been based in six countries working for major news outlets including the Guardian, UPI & AP. He has covered massive earthquakes, presidential elections, immigration, and taken photos standing in the middle of shootouts between drug cartels, gone undercover to investigate organised crime, interviewed presidents, former presidents, heads of international organisations.