Mexican Financial authorities said that cryptocurrencies are not legal tender in the country and are not considered currencies under current laws, warning that financial institutions could face sanctions.
In a press conference, they said that Mexico’s financial institutions are not authorized to carry out and offer public operations with virtual assets like Bitcoin, Ether, and others, “In order to maintain a healthy distance between these financial systems.”
Arturo Herrera, Maxico’s finance minister said, cryptocurrencies aren’t legal tender assets and aren’t treated as currencies within country’s current regulatory framework. Current rules prohibit the use of cryptocurrencies in the financial system. The prohibition would likely not change in the near term.
Cryptocurrencies are tend to be volatile. Making it’s volatility reason, he added that cryptocurrencies do not served the same function as money.
“The financial authorities reiterate their warnings … on the risk inherent in the use of so-called ‘virtual assets’ as a means of exchange, as a store of value or as another form of investment,” the statement said.
The statement comes soon after Mexican Billionaire Ricardo Salinas Pliego said his bank would accept bitcoin.
“Sure, I recommend the use of bitcoin, and me and my banks are working to be the first bank in Mexico to accept bitcoin,” Salinas, who owns Banco Azteca, tweeted on Sunday.
The ban isn’t an outright ban of cryptocurrencies, individuals can still hold crypto. On the other hand, some other countries are making big moves with cryptocurrencies. Earlier this month, EI Salvador made a dramatic move becoming the world’s first country to make bitcoin a legal tender. Mexico is taking a strong anti-crypto stance, while its neighbors have done the opposite by promoting digital currency.
