On Monday, financial authorities in Mexico told that crypto assets aren’t legal tender and aren’t considered currencies under current laws. The authorities further cautioned financial institutions that operate with them are subject to sanctions.
The joint statement by banking regulators, the Bank of Mexico and the the Bank of Mexico after Ricardo Salinas Pliego, a Mexican billionaire on Sunday told that Banco Azteca, his banking business may start using bitcoin, which would make it nation’s first bank to begin accepting the crypto.
Previously in this month, EI Salvador made a dramatic move to make bitcoin a legal tender.
The statement also mentioned that the financial authorities repeat their warnings.. on the risks deep-rooted in the use of so-called ‘virtual assets’ as another form of investment, as a store of value or a means of exchange.
The statement continued that the financial institutions in Mexico must avoid transferring to their clients the risk associated with crypto operations. It further added that the use of so-called stablecoins wasn’t allowed under current Mexican law.
According to Arturo Herrera, finance minister, under current rules crypto is prohibited from being used in the Mexican financial system, emphasizing that the forbidding may not change in the future.
According to the statement, crypto tends to be speculative assets and volatile and while they can be traded, they don’t serve the same function as money, because their acceptance as a mode of payment is restricted and they aren’t a value reference or good reserve.
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