In addition, the exploitation of virtual assets by non-financial entities is permitted under the conditions provided for in the Federal Act on the Prevention and Identification of Transactions with Illicit Product Resources (LFPIORPI) (see below for details). But there is still a big question about every person in Mexico who invests in Bitcoin; Is Bitcoin Legal in Mexico? Earlier this month, El Salvador made a dramatic move to make Bitcoin legal, a world first. In addition, the legal framework for virtual assets also includes the secondary provisions of the Central Bank of Mexico, known as “Circular 4/2019”, whose main objective is to determine the characteristics that virtual assets must meet in order to be used between financial institutions (ITF and banks) and their customers. Mexico`s law governing fintech companies, enacted in March 2018, includes a chapter on operations involving “virtual assets,” commonly known as cryptocurrencies. [54] In this chapter, virtual goods are used as representations of electronic records and by the public as a means of payment for all types of transactions that can only be transmitted electronically. [55] In the absence of a specific legal provision for testamentary succession of cryptocurrency ownership, the general rules of succession of the Federal or State Civil Code apply. The senator also suggested that Salvadoran President Nayib Bukele could have started a bitcoin revolution that has the potential to reach every country. “Making Bitcoin legal means creating a level playing field for excluded people in almost every country,” she added. Our Freeman Law Cryptocurrency Law Resource page provides a summary of the legal status of cryptocurrency for each country in the world with legal or regulatory requirements for cryptocurrency.
The following globe contains links to country-specific summaries: Ownership rights over cryptocurrencies of natural persons can be transferred by legal succession or testamentary succession. However, there is no legal requirement for a depositary exchange to determine a beneficiary of virtual assets in the event of death. Currently, in some custodian exchanges, the power is granted to designate heirs who will receive control and custody of cryptocurrencies. There are no specific rules for estate planning and estate succession of cryptocurrencies. Therefore, the general rules apply. It is important to note that the legal nature of virtual assets corresponds to intangible assets eligible for appropriation. The Bank of Mexico does not interfere in the operation of the currency because the central bank does not recognize virtual assets as legal tender and does not support their value as it does with the peso. However, the State reserves the right to authorize their use and to classify the operations carried out as legal or illegal. There is no certainty that the current perception of cryptocurrencies and their use as legal tender in Mexico by Mexican regulators will change in the near future and that, therefore, the lack of regulation will also be eliminated, for example, by the assimilation of virtual currencies to securities and their regulation.
In any case, transactions with these currencies in the Mexican market are likely to continue to increase, which will encourage various players to try to participate more actively in this market by taking advantage of the lack of regulation. It is important to note that one area where virtual currencies are already regulated in Mexico is related to the fight against money laundering. MEXICO CITY, 28 YEARS OLD. June (Reuters) – Mexican financial authorities said on Monday that the crypto-assets are not legal tender in Mexico and are not considered currencies under current law, warning that financial institutions operating with them will be subject to sanctions. The international Bitcoin fever, with ups and downs of more than 40% in a matter of days, prompted Mexican regulators to include virtual assets in the bill regulating fintech institutions, better known as the Fintech law. The Fintech Act provides the main legal framework for financial institutions to operate with virtual assets. However, this law also regulates several key components and entities that foster innovation within the Mexican financial system: The joint statement by the Bank of Mexico, the Ministry of Finance and the banking regulator comes after Mexican billionaire Ricardo Salinas Pliego said on Sunday that his banking business, Banco Azteca (ELEKTM. UL), could use Bitcoin, which would make it the first bank in the country to accept cryptocurrency. Currently, the country`s legislation imposes certain restrictions on its use.
The Bank of Mexico has stated that it allows crypto as a means of payment, but not as legal tender. Mexicans are therefore allowed to exchange Bitcoins. The regulation in question implies a change of regulatory paradigm in Mexico, since our financial law has its origins in civil and civil law, a system of codified laws that seeks to comprehensively cover all areas of application of the law that may have legal consequences. In contrast, Mexico`s regulatory sandbox is configured to provide even an ad hoc legal framework for these new business models. Mexican Federal Congress Senator Indira Kempis has proposed a bill that, if passed, would make Bitcoin legal in the country and be incorporated into Mexico`s monetary law. As previously reported, other Mexican senators, including Eduardo Murat Hinojosa, were working on crypto-friendly legislation shortly after the Bitcoin law was passed by the Salvadoran legislature in early June 2021. In October, Mexican President Manuel©Lépez Obrador said the country was unlikely to follow in El Salvador`s footsteps by adopting Bitcoin as its legal tender. Despite this, mining has an important energy aspect in proof-of-work protocols, and depending on the amount of energy required, a mining company may be considered a “qualified user” that must meet the consumption or demand requirements established by the Ministry of Energy under the Electricity Industry Act and is therefore subject to the appropriate energy regulatory framework.
