Santiago Nieto Castillo, the leader of the Mexican financial regulator UIF, has issued a warning that 12 cryptocurrency exchanges in the country are operating illegally. Regulators are now providing the Mexican authorities with the necessary data to take action on these exchanges. The agency receives information reporting user transactions from 23 registered cryptocurrency exchanges.
Mexican regulator looking for unregulated exchanges
The Financial Intelligence Agency (UIF), the Mexican financial regulator, issued a alarm Approximately 12 cryptocurrency exchanges operating illegally in the country. The names of these companies are not mentioned, which means that these exchanges are still not registered with the country’s tax authority and the State Administration of Taxation. UIF director Santiago Nieto Castillo (Santiago Nieto Castillo) said that they are collecting data to take action against these companies.
The Mexican Fintech Law stipulates that virtual asset service providers must report the activities of customers whose transaction amount exceeds 57,804 pesos (currently equivalent to 2,911 US dollars). The policy will be implemented in April 2021. Nieto Castillo stated that UIF has received 3,400 alerts from 23 cryptocurrency exchanges that have registered with the regulator. In the country, cryptocurrency transactions are classified as high-risk activities due to money laundering and terrorist financing issues.
Nieto Castillo hinted that there may be a relationship between these exchanges and criminal groups. He declared:
A basic question is to analyze cryptocurrency and its relationship with criminal groups. It caught my attention. Many cryptocurrency platforms are installed in various cities in Jalisco (a region controlled by the Jalisco Cartel).
Trading platforms may be subject to sanctions
With the help of registered exchanges, UIF has detected three possible money laundering attempts using cryptocurrencies. Regarding this issue, Nieto Castillo said that due to such negligence, they found that the amount of some users’ transactions did not match their transaction data.
These unregistered exchanges may be sanctioned by the Mexican government. These sanctions may include criminal charges and fines. According to national laws, unregistered exchanges may pay 29,000 pesos (nearly 2,000 USD) to 295,400 pesos (nearly 15,000 USD) for not registering with the SAT.
All in all, Nieto Castillo stated that if the Mexican regulator establishes CNBV (National Banking Regulatory Agency) as the money laundering controller of these exchanges, it will be desirable because the agency is managing Have more experience with this type of risk.
So far, Mexico has taken a tough stance on cryptocurrencies. Its Finance Minister Arturo Herrera stated, statement On June 29, the Mexican financial system banned the use of cryptocurrencies.
What do you think of Mexico’s anti-money laundering regulations related to cryptocurrency? Tell us in the comments section below.
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