Mexico to use Blockchain for Land Registration in Partnership with Overstock

Overstock’s land registration subsidiary will be working with the municipality of Tulum in Quintana Roo in Mexico to develop a land registration platform, as reported by Nasdaq, February 4, 2019.

Medici in Mexico

Blockchain has previously been used for land registration in the United Kingdom by the government, and now the same application will be used in Mexico after a Memorandum of Understanding (MoU) was signed between the Mexican government and Overstock’s Land registration division on February 4, 2019.

As a result of this agreement, a digital platform will be developed to collect land registration data and issue certificates to public landowners. This platform will be developed as a partnership between Medici Land Governance (MLG) and the municipality of Tulum in Quintana Roo. With time, the platform will also be involved in the automatic storage of public land transactions such as transfer of ownership.

Easing the Process

This new partnership will help in the organization of the land registration process saving time and energy and preventing disputes.

Víctor Mas Tah, mayor of the municipality of Tulum, Quintana Roo, Mexico said:

“The signing of this Memorandum of Understanding between the Municipality of Tulum and Medici Land Governance represents the beginning of a new territorial ordering stage for the digitalization of land ownership and related processes”

Land ownership is one of the most complex parts of public life as oftentimes, transfers of ownership are not properly documented and as such, it is not uncommon to see disputes over land ownership last months and even years. This is why land registration has been so heavily embraced by world governments such as New South Wales and even Zambia who signed a similar memorandum of understanding with MLG.

At the time, a press release wrote:

“Without formal ownership, individuals struggle to obtain access to credit and public services, while governments are limited in their ability to collect taxes, enforce property rights, and plan for economic expansion and innovation”

There is also a benefit to the governments themselves; by having a secure land registration process, they have access to better international opportunities and can easily attract investors. This belief has been backed up by Medici Land Governance CEO, Ali El Husseini, who said:

“Mexico’s adoption of advanced technology in their land registry will increase opportunities for individuals to strengthen their connections to the global economy through rightful ownership of land.”

Author: Tokoni Uti
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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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