Mexico Issues Reminder for Crypto Exchanges to Report Transactions

The government of Mexico has issued a reminder for virtual asset service providers (VASPs) about the requirement of reporting cryptocurrency transactions. The issued document states that these institutions must deliver a report of all transactions over an established value threshold by September 17. All of this is established in the Federal Law For The Prevention And Identification Of Operations With Illicit Resources.

Mexico Issues Reminder to VASPs

Authorities from the government of Mexico have issued a reminder to virtual asset service providers (VASPs) about their obligation of reporting some transactions from their customers to the anti-money laundering institutions of the country. These institutions must present the relevant data associated with customer transactions that move more than $87,000. The reminder states this information must be sent to the regulators by September 17.

These obligations are included in section XVI of article 17 of the Federal Law For The Prevention And Identification Of Operations With Illicit Resources (LFPIORPI) which classifies cryptocurrency exchange services as a vulnerable activity, susceptible to being reported. This obligation reaches even exchanges that serve Mexican customers, even if these have no offices in the country. In this sense, the notice stated:

Whoever offers virtual asset services in terms of section XVI of article 17 of the LFPIORPI is subject to comply with the obligations set forth in said law, among them, the presentation of the corresponding notices, even when the technological infrastructure with which it offers such services is in the jurisdiction of another country or are offered by companies incorporated in another country.

Crypto Regulation in the Country

Mexico has been a country that has issued tight crypto-related regulations, being one of the countries that are more advanced in applying the standards of the Financial Action Task Force (FATF) for virtual sets. In this sense, the FATF has reported that:

Mexico has been in an enhanced follow-up process following the adoption of its mutual evaluation in 2018. In line with the FATF Procedures for mutual evaluations, the country has reported back to the FATF on the action it has taken since then.

The institution considers Mexico is compliant on 8 of the 40 FATF recommendations and largely compliant on 22, making it one of the countries that are doing the most to comply with the FATF. Last June 29, the Finance Minister of Mexico stated that cryptocurrencies were prohibited from being used in their national financial system, reinforcing the tough stance the country has shown towards crypto.

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