• The Federal Bureau of Investigation has charged 12 bitcoin exchanges for operating illegally

  • Over 12 cryptocurrencies are functioning illegally in Mexico, according to a study submitted by the Financial Intelligence Unit. The names of these trades have yet to be revealed. They are, however, unregistered with the government.

    In Mexico, there are over 12 bitcoin exchanges that are operating illegally. All of them have been accused of failing to comply with the Financial Intelligence Unit’s (FIU) reporting obligations.

    The 12 exchanges are not registered with the FIU, according to Santiago Nieto Castillo, the agency’s head, and have been operating unlawfully throughout the country. The exchanges’ names have not yet been revealed.

    Money laundering prevention

    The local newspaper in the area had covered the incident and interviewed Castillo about the authorities’ response. The authorities, according to Castillo, are generating cases so that the attorney general’s office can function. The FIU’s objective, according to Castillo, is to combat money laundering.

    The platform that provides this service had to begin integrating their clients’ identification files in September 2019 and report the notices to the authority of the activities that they register and represent by April 2020. According to the Fintech law of 2020, exchanges must begin reporting transactions worth more than 645 units of account (UMAS), or M$57,804 (US$2,896).

    The rules are as follows:

    The FIU has received 3,400 notifications from 23 exchanges so far. According to Castillo, the information was reported to the Mexican Tax Administration Service (SAT). Three money laundering instances using cryptocurrencies have been identified by the FIU. These cases were discovered almost immediately after the complaint was filed.

    The FIU’s working activities are overseen by the Secretariat of Finance, which is in charge of analyzing information connected to illicit money operations. Mexico’s Finance Minister, Arturo Herrera, stated that cryptocurrencies are not regarded as legal money. Under the country’s current regulatory structure, the assets are not treated as currencies.

    In the short term, the policies cannot be changed. Herrera further stated that during a presentation to the Financial Action Task Force last month, officials confiscated a worldwide anti-money laundering group.

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