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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 services for the sale of bitcoin and cryptocurrencies through its platform.

The action against the company is because does not have the approval of the CNBV to operate with cryptocurrencies, the reason why it was sanctioned, according to Forbes magazine.

A statement from the regulatory body 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 – through a debit card and an application – to receive and transfer funds. Up to 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 bitcoin (BTC) exchanges and other cryptocurrencies, must register, comply with certain rules and report some operations.

In the case of virtual wallets, such as Albo, the specific law that they cannot trade 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, . reported that the Aztec nation has a positive assessment by the Group for its compliance with regulations.

The Fintech law was enacted in 2018 by the then president, Enrique Peña Nieto.

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 the rest of the cryptocurrencies well, so in his opinion, there will be no changes in the future.

It was very well established in the Fintech Law: financial intermediaries will be able to operate with cryptocurrencies, under the effect determined by the Bank of Mexico and, as we all know, none of them has been determined, for now, for customers The sale of virtual assets is not allowed.

Juan Pablo Graf, president of the CNBV of Mexico.

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Donna Miller

Donna is one of the oldest contributors of Gruntstuff and she has a unique perspective with regards to Science which makes her write news from the Science field. She aims to empower the readers with the delivery of apt factual analysis of various news pieces from Science. Donna has 3.5 years of experience in news-based content creation, and she is now an expert at it. She loves journalism, and that is the reason, she moved from a web content writer to a News writer, and she is loving it. She is a fun-loving woman who has very good connections with every team member. She makes the working environment cheerful which improves the team’s work productivity.

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