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Mexican fintech was fined USD 500,000 for offering to buy and sell bitcoin

The fintech Albo was fined 9 million Mexican pesos (USD 500,000) by the National Banking and Securities Commission (CNBV) of Mexico, for providing bitcoin and cryptocurrency trading services through its platform.

The action against the company is due to the fact that does not have the approval of the CNBV to operate with cryptocurrencies , which is why it was sanctioned, According to Forbes magazine.

A statement from the regulator is expected, regarding the sanction against the company.

Apparently, Albo allowed its users to buy cryptocurrencies for several months , but last October it removed the option from its website.

The company founded in 2016 allows its users to –a via debit card and app – receive and transfer funds. Until now have not declared their position on the economic sanction imposed .

The company, on its website, acknowledges that it is not supervised by Mexican regulators. «Authorization to carry out electronic payment fund operations through the application will be requested within the period indicated by the Law to Regulate Financial Technology Institutions. Pending such authorization, the current operation of the application is not supervised by the competent Mexican Authorities ”, explains Albo.

In Mexico, according to the Fintech Law enacted in 2018, Fintech platforms , including exchanges of bitcoin (BTC) and other cryptocurrencies, must register, comply with certain regulations and report some operations .

In the case of virtual wallets, such as Albo, the specific law that cannot operate with cryptocurrencies .

All this legal structure installed in Mexico, has, among other things, the intention of complying with the suggestions of the International Financial Action Group (FATF) in relation to the regulation of cryptocurrencies. In fact, CriptoNoticias reported that the Aztec nation has a positive assessment by the Group for its compliance with regulations.

Banks cannot trade bitcoin or other cryptocurrencies

Not only virtual wallets are prohibited from operating with bitcoin in Mexico. Last September, the president of the CNBV, Juan Pablo Graf, reiterated that banks in that country cannot operate with crypto assets.

The official believes that there are laws that regulate bitcoin and to the rest of the cryptocurrencies, so in his opinion, there will be no changes in the future.

It was very well established in the Fintech Law: financial intermediaries may operate with cryptocurrencies, under the effect determined by the Bank of Mexico and, as we all know, none of them have been determined, for As soon as possible, for customers the sale of virtual assets is not allowed .

Juan Pablo Graf, President of the CNBV of Mexico.

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Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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