The Government of Mexico highlighted the obligation of virtual asset service providers, which include bitcoin exchanges and other cryptocurrencies, to present notices about certain operations. Specifically, they must report those that exceed an amount close to USD 87,000, even when “the technological infrastructure with which they are offered is in the jurisdiction of another country or is offered by companies incorporated in another country.”
The reminder was posted on the Government of Mexico’s Money Laundering Prevention Portal. In the text, it is indicated that the requested information must be provided before the 17th day of the following month in which the transactions were carried out. The regulation covers cryptocurrency exchange houses thanks to a reform of article 17 of the Federal Law for the Prevention and Identification of Operations with Resources of Illicit Origin (LFPIORPI), carried out in 2018.
In this law, it is stated what type of companies must provide details about their activities to the authorities in order to combat money laundering. Since the penultimate reform (the last one if only the aforementioned article is counted), companies that offer the “usual and professional exchange of virtual assets” were added, as well as those that facilitate the operations, custody or storage of such assets. It is clarified, however, that financial entities are not included in this group.
For an operation to be reported, its amount must be equal to or exceed the equivalent of 645 Measurement and Update Units (UMA), whose value for 2021 is 2,724 Mexican pesos according to BDO Mexico. This means that Those transactions greater than 1,756,980 Mexican pesos or USD 87,805 must be reported. at the closing of this note, in accordance with the quotation of the Central Bank of Mexico.
Regarding the definition of “virtual asset”, the Money Laundering Prevention Portal of the Mexican government indicates that “a virtual asset shall be understood as any representation of value registered electronically and used among the public as a means of payment for all types of acts. legal and whose transfer can only be carried out through electronic means ”.
Mexico complies with the FATF requirements
The communication from the Government of Mexico only confirms the good reputation it has earned before the Financial Action Task Force (GAFI) in relation to the regulation of cryptocurrencies. As CriptoNoticias reported in June, the agency rated the North American country with an “outstanding” for its compliance with regulations for virtual assets and service providers.
In this sense, Mexico complies with 22 of the 40 FATF guidelines, as detailed in the report. Among other provisions, this includes the policy of Know Your Customer o KYC (“Know your customer”), which requires platforms that operate with crypto assets to request data from their users such as name, surname, account number, physical address, identity card number.