Banco De Mexico: Cryptocurrencies Are A Window For Money Laundering

The Mexican crypto-market has grown in recent years against the position of the Central Bank of Mexico, Banxico, on the crypto-active. According to its website, the regulatory institution considers that "digital assets" -as they are denominated by the entity- do not meet the characteristics to be considered money; and in fact, they advise maintaining a "healthy distance between digital assets and the financial ecosystem".
Banxico recommends the public move away from the crypto market due to the risks related to money laundering with cryptocurrencies. For the Bank of Mexico, the cryptoactives "represent a considerable risk in terms of prevention of money laundering and financing of terrorism", because they link these activities directly to the "anonymity" provided by the use of certain services or cryptocurrencies, such as Monero .
Banxico's research on the risks of money laundering using cryptoactives points as an example to Silk Road, a virtual black market that is no longer operational, and cryptojacking and ransomware, by means of which some criminals perpetrated more than 200,000 attacks, demanding in some cases bitcoins as payment.
Likewise, the monetary authority of Mexico indicates that the absence of controls for commercial activity with cryptocurrencies at a global level represents a risk. A position that coincides with that of the French Minister of Finance and some members of the G-20 , who point out the importance of a joint legal framework .
On the other hand, Banxico values the volatility of cryptoactives as a risk for users who "do not know these technologies in detail". A concern to which add the possibility of a bad result for users if the participants of the network decided to change the rules with which block chains operate; a plausible premise, but one that requires the acceptance of most of the participants in the decentralized network, that is, consensus.
Despite these evaluations of cryptoactives, Mexico does not restrict the use of cryptoactives for economic activities. In fact, this Latin American country has fintech legislation that includes cryptocurrencies . Banxico, for its part, adapted its current financial rules as the regulator of the Interbank Electronic Payment System (SPEI) in the search to mitigate the risks of money laundering, which resulted in the application of identity documents to the users of the houses of change , the sending of reports to the authorities and notices of suspicious activities.

Published: 19-04-2019, 09:08

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