Mexico requires crypto companies to report operations

Sat 21 Aug 2021 ▪ 14h58 ▪ 3 min read — by Susan McCormack

The Mexican government has reminded crypto firms and exchanges that they are obliged to report transactions worth over $87,000 (~£63,850) before 17th September.

Mexican approach to crypto

Cryptocurrencies are not legal tender in Mexico, therefore financial institutions are sanctioned for their use. On 20th August, the government of Mexico issued a new reminder to crypto exchanges, which states that any information on crypto transactions is to be reported until 17th September. According to the notice, crypto companies are to report about any transactions exceeding the $87,000 (~£63,850) threshold.

The Money Laundering Prevention website of the Government of Mexico explained that this rule applies to those companies that operate under national or foreign jurisdiction. “We refer to the obligation provided in section VI of article 18 of the Federal Law for the Prevention and Identification of Operations with Resources of Illicit Origin (LFPIORPI), according to which those who carry out Vulnerable Activities in terms of section XVI of the Article 17 of the same Law, they must present Notices about the acts or operations that they carry out, no later than the 17th day of the month following in which said acts or operations are carried out.” 

The ruling also targets any crypto-related firms offering depository and trading services, but does not apply to financial institutions. The Mexican authorities stated, “A virtual asset shall be understood to be any representation of value registered electronically and used among the public as a means of payment for all types of legal acts and whose transfer can only be carried out through electronic means.”

Mexico complies with the recommendations of the Financial Action Task Force on Money Laundering (FATF). This organization placed Mexico among the countries with a high reputation in terms of cryptocurrency regulation. In 2020, analysts of the venture capital company Jump Capital included Mexico in the top three most promising jurisdictions for Bitcoin (BTC) and other digital assets. By the end of 2020, Mexico accounted for almost 11% of all retail crypto payments in Latin America.

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Susan McCormack avatar
Susan McCormack

How many crypto nerds does it take to fork an altcoin? I may be a failed comedian, but crypto is no joke! I want to share my knowledge and help others to see the bright future ahead. #buybitcoin


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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