Introduction
Cryptocurrencies are a very curious and interesting modern day example that many nations will be looking to learn from and gain insight. There are many systems in place that have existed nearly unchanged for hundreds if not thousands of years. Examples of these systems include money and different forms of currencies.
As such, it is not often that something revolutionary and potentially world-changing come about. Cryptocurrencies are one such thing. However, while they are new and highly technologically advanced in concept and nature, this does not mean that are no accompanying issues. Individuals and entities with bad intent have and will find ways to manipulate this new currency for illegal actions.
The Bank of Mexico has recently released a circular with the intention to prevent the rise of such illegal actions. The entailments of the circular as well as the Mexican government's intentions with the coming law can be summarized as follows.
Preparing for a Digital Future
Some of the crucial areas which have been identified as requiring legal protection to ensure they are not abused include the likes of money laundering and related criminal activities. The method through which this will be combated is with the introduction of permits.
Permits will be issued to those exchange platforms that qualify to receive them. With the government able to control the movement of cryptocurrencies within their nation, money laundering will occur to a far lesser degree.
The change is a necessary one, though more changes will have to arise before these digital currencies can receive even similar treatment to ordinary ones. However, this is a strong initial step in the appropriate and right direction.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.