Expert: ‘Regulations Will Help Spark Mexican Crypto Boom’

One of Mexico’s top fintech lawyers says cryptocurrencies will be commonplace in Mexico “by 2020 or 2021,” as the popularity of Bitcoin and altcoins grows in the country – and the government continues with a progressive approach to regulation.

State-run media outlet Notimex quotes Julio César Rojas de la Cruz, Fintech Advisor at Mexico City-based law firm RCA Abogados, as saying that the popularity of cryptocurrencies is increasing fast in the country. The lawyer says the rate is particularly high among younger Mexicans – who are keen to invest money in currencies that are not influenced by government policies or inflation.

Rojas de la Cruz also added that he believes Mexicans will be able to buy, sell and spend tokens without the use of a conventional financial institution (such as a commercial bank) “by 2020 or 2021.”

The lawyer also said that the government’s move last month to regulate cryptocurrency exchanges has already helped drive up interest in digital tokens – and is even providing a model for other countries looking to regulate. “Our legislative model is going to be replicated in other countries,” stated Rojas de la Cruz.

The Mexican parliament recently passed a law that will require exchanges in the country to operate under license from the country’s central bank, Banxico. As of March next year, companies wishing to obtain a license will need to present Banxico with a report detailing the nature of their business operations, a list of employees and their responsibilities, commission rates and proof that they are able to prevent customers from engaging in illegal activities, such as money laundering.

Rojas de la Cruz also stated that a second round of fintech regulations was also now in the pipelines, and would likely pass before parliament sometime next year – taking legal effect in March 2020.

The lawyer also said that a number of overseas exchanges were now looking to set up shop in Mexico following news of the regulations.

He opined that the country could also be set for another 2017-style crypto boom, stating, “Demand is rising increasing again, and we hope that between 2019 and 2020 [the cryptocurrency market] will generate the same sort of revenues and volumes as last year.”
A number of exchanges in the country have welcomed the new regulations, saying they will help legitimize crypto businesses, boost public confidence in cryptocurrencies and encourage investment.

Author: Tim Alper
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Bitcoin leads the cryptocurrency resurgence, climbs past $8,200 USD

Bitcoin has climbed past the $8200 USD mark, with traders and enthusiasts alike celebrating the pre-eminent cryptocurrency’s return to form.

After a difficult hike through the early months of 2018, Bitcoin has summited its first peak on a potential road to recovery, as this morning the pre-eminent cryptocurrency climbed past the $8,200 USD mark.

Having entered the year off the back of a roaring December, Bitcoin traded at $14,112 USD on the 1st of January – all before collapsing to $6194 USD on the 6th of February.

Since then, the wider cryptocurrency sphere has endured its latest bear market – without thousands of altcoins reportedly left to gasp for air.

In news that has left traders, enthusiasts, and developers alike elated, Bitcoin has risen by 3.84 % over the past twenty-four hours, and over the past seven days has risen in value by some 11.78 %.

Bitcoin’s dominance over the wider cryptocurrency market has also resumed, with the pre-eminent cryptocurrency accounting for some 47.3% of the total cryptocurrency market capitalization.

Sentiment behind the pre-eminent cryptocurrency has been bolstered thanks to the news that the United States Securities and Exchange Commission has been said to be evaluating several proposals for a Bitcoin-led Exchange Traded Fund (ETF).

While traders have endured pessimistic markets, several key figures have advocated their belief that Bitcoin’s return to form could just be beginning.

Notably, Fundstrat advisor Tom Lee has issued his prediction that Bitcoin will rise to $22,000 USD by the end of the year, while TenX founder Julian Hosp has iterated that the cryptocurrency could reach values as high as $60,000 instead.

Other voices have noted that while Bitcoin’s price value might attract and benefit speculative traders, evaluating both the adoption of (and transactions handled by) cryptocurrency networks paint a more compelling picture.

Billionaire venture capitalist Tim Draper, for one, has noted his view that Bitcoin will reach $250,000 USD by 2022, and has popularly claimed that “cryptocurrencies will overtake fiat currencies in the next five to seven years”.

While 2018 has been a difficult year for cryptocurrencies thus far, the past seven months have seen a number of important technical advents. Notably, several altcoins have broken away from beta offerings and have gone on to launch their official, proprietary blockchain – with EOS, Tron, Augur, and other projects debuting their official digital asset.

At press time, Bitcoin trades at $8278 USD and is up by 3.84% day-on-day.

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