Physical Cryptocurrency Exchange in Mexico to Operate under New Sandbox Regulatory Scheme

By Steven Anderson June 4, 2019 Off

Mexico will be getting eight new cryptocurrency exchanges.  On June 21, 2019, Amero-Isatek will be launching its first physical cryptocurrency exchange station in Nuevo Leon, Monterrey.  Further, the company will be expanding to seven other locations across Mexico.

The company has estimated that it will serve more than 800,000 cryptocurrency users in Central Mexico.  The Users of the exchange will be trading in Amero, which is the proprietary cryptocurrency of Amero-Isatek.  The asset will also be launched on the opening date of the Nuevo Leon branch.

The launch of a physical cryptocurrency exchange in Mexico will be operating under the “sandbox” regulatory scheme applicable for new Fintech businesses.

There has been a lot of confusion concerning the cryptocurrency laws in Mexico.  Jiménez recently stated, “Whatever it happens with the Fintech Law in Mexico, under Banxico’s dispositions, we’ll be able to operate legally worldwide with a financial base from Estonia.”  He further added, “If the Fintech law turns out to be friendly in Mexico as well, we’ll be registered as a Fintech with financial operations.”

It takes a lot of efforts to understand the higher level discussion concerning cryptocurrency and the blockchain technology if regulators should understand the cryptocurrency space. They need to get comfortable with the terminologies in the cryptocurrency space.  All the participants who are involved in making the law should understand the terminology and core concepts of cryptocurrency.

There are airdrops where there is a massive give away of tokens to facilitate adoption.  Deloitte’s Amy Steele recently discussed Air Drops, which indicated a clear understanding of the terminology.  The discussion was happening with Jennifer McHugh, which was the senior special counsel to the Division of Investment Management, and there was a particular focus on how this can impact consumer risk.  This discussion also revolved around the debate on terminologies like “Fork.”  And it was seen that the officials were more informed about crypto.

Coding specialists find federal laws too complex to understand, and smart contracts and cryptocurrency codes are complex to regulators.

However, Attorney Stephen Rutenberg, a member in a Fintech firm opined that the understanding of the SEC about the cryptocurrency is far advanced than “What most people think.”

The regulation does not happen overnight.  “The law says what the law says,” and it is not easy to find a radically different interpretation unless a new law has been passed concerning the asset class.

Rutenberg recently stated, “However, if one were expecting the SEC to make firm commitments or provide more definitive guidance, they would likely have come away disappointed from the forum.”