Digital asset service providers must observe all the reporting requirements outlined by financial laws, the Mexican government has reiterated in its latest warning. These requirements apply whether the firm is located in Mexico or overseas.
The Mexican government reminded the firms of their obligations via its Money Laundering Prevention Portal. These obligations include having to report any transaction that exceeds $87,000 to relevant authorities.
Per Central Bank of Mexico’s quotation, transactions worth over 645 Measurement and Update Units (UMAs)—with one UMA currently standing at 2,724 Mexican pesos—must be reported, translating to 1,756,980 Mexican pesos ($87,805).
The latest clarification was very particular in its inclusion of both local and offshore exchanges. It stated that these rules apply to any digital asset service provider “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 portal also defined digital assets, being one of the few globally that does. “A virtual asset will be understood as any representation of value registered electronically and used among the public as a means of payment for all types of acts and whose transfer can only be carried out through electronic means,” it stated.
The money laundering prevention laws haven’t always applied to digital currency companies. However, according to CVBJ, financial laws were amended in 2018 to include “companies that offer the usual and professional exchange of virtual assets” as well as “those that facilitate the operations, custody or storage of such assets.”
The latest reminder for the digital asset industry is in line with Mexico’s rather strict adherence to the Financial Action Task Force (FATF) guidelines. The agency rated Mexico as outstanding for its compliance with the FATF guidelines, noting that it had implemented 22 of the 40 requirements.
Despite its strict adherence to FATF requirements, there are still a few bad apples in the Mexican digital assets sector. As CoinGeek reported earlier this month, the country’s Financial Intelligence Unit claimed that there were 12 exchanges that were operating illegally.
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