In a move that is a huge deal for Mexican based cryptocurrency exchange service, Bitso announced on July 19 that they had secured a DLT license from the Gibraltar Financial Services Commission (GFSC).
According to the company, it becomes the first company in Latin America to be able to provide withdrawals, deposits, and trades of cryptocurrencies using the regulatory approval of the GSFC. The acceptance by this regulatory agency makes them the first exchange in Latin America to be recognized by the regulatory group as a distributed ledger technologies sector provider.
The official agreement was finalized in January 2018 and is set to take effect on August 1. This will ensure that there is greater consumer protection and security for Bitso.
The decision to cooperate with the GFSC appears to have first manifested itself during the international FATF forum. While working closely with the Mexican government following the enactment of its Fintech Law, Bitso wanted to expand their operation, and acceptance by the GFSC gives them a lot of credibility in international markets.
It was not long before other companies were seeking the stamp of approval by the GFSC. In December, Singapore-based Huobi received a DLT license. Months later, the Gibraltar Stock Exchange launched a list of blockchain-powered securities on its exchange.
Starting in August, all crypto transactions and other activities involving Bitso will have their activities monitored by the GFSC DLT Regulatory framework. Bitso is pledging to be transparent and uphold to all of the standards not only required by the regulatory agency, but also by Mexico’s new laws. This gives Mexico a leg up over other countries in Latin America, establishing it as the most innovative financial service provider in the region.
This could become a huge step not only for Mexico but for other Latin American countries who are looking to end their dependence upon the U.S. dollar for international trade.
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