Is Cryptocurrency Legal In Mexico is a question that many people are asking these days, and we’re here to help.
Are you considering investing in cryptocurrency but don’t know if it’s legal in Mexico?
We’ll cover the legality of cryptocurrencies for both citizens and businesses in this blog post, so stay tuned.
Is Cryptocurrency Legal in Mexico?
Yes, Cryptocurrency Is Legal in Mexico.
In 2014, the Mexican government passed a law that defined cryptocurrencies and other digital assets as electronic money.
This gave it certain protections under Mexico’s existing financial regulations.
It also required cryptocurrency exchanges in the country to be registered with Mexico’s central bank (Banxico), while imposing capital requirements on these businesses.
In December 2017, Mexico’s National Banking and Securities Commission stated cryptocurrencies.
It outlined the commission’s position that bitcoin exchanges were subject to existing banking rules governing money laundering and terrorism financing risks.
It also stated that it would not consider cryptocurrency assets as legal tender for payment of goods or services. However, this should not be confused with its decision to treat cryptocurrencies as electronic money.
Cryptocurrency Is Legal in Mexico Because it Is Treated As Electronic Money
Bitcoin, Ethereum, and other digital assets are legal means of payment under Mexican law because they are considered equivalent to “electronic money”.
So as a Mexican you are free to buy and sell cryptocurrencies just as you are free to buy or sell dollars with your smartphone.
However, the Mexican government does not consider cryptocurrency assets legal tender for payment of goods or services in Mexico yet.
Top 20 Cryptocurrencies to Invest in Mexico
Cryptocurrency is a digital or virtual currency that operates based on cryptography.
It is not regulated by any government or financial institution, thereby making it decentralized.
The Top 20 Cryptocurrencies to Invest in Mexico are the following:
- Bitcoin (BTC)
- Ethereum (ETH)
- Litecoin (LTC)
- Dash (DASH)
- Ripple (XRP)
- IOTA (MIOTA)
- Stellar Lumens (STR- XLM- STRM )
- Bitcoin Cash (BCH)
- Cardano (ADA)
- Monero (XMR)
- NEM (XEM- XEMN )
- NEO (NEO- NEOV )
- Dogecoin DOGE
- Zcash ZEC
- Shiba Inu (Shib)
- Binance Coin (BNB)
- TRON TRX
- EOS EOS
- Tether USDT
- VeChain VEN
These coins listed above have a high potential to grow. Cryptocurrencies to Invest in Mexico are not limited, there may be other coins you can invest in.
The best way is to do your research and find out what coin suit you the most.
If you all want to buy or invest in cryptocurrency you can do that by going to a cryptocurrency exchange.
On this website, you can buy or sell different cryptocurrencies and also trade between them. You need to have an account on the platform to place your orders. Once logged in, you will see all open positions (bids) and their size.
Do Mexican banks accept Bitcoin or any type of Crypto?
No, Mexican banks do not accept Bitcoin or any other type of cryptocurrency.
The main reason for this is because the government has strict rules and regulations regarding money laundering and illegal activities that are commonly carried out with crypto transactions.
These include avoiding paying taxes on foreign income by using cryptocurrencies to move funds across borders.
Secondly, Bitcoin is not considered a currency in Mexico, so it is not regulated by the Central Bank of Mexico.
The bank does have a committee that looks at cryptocurrency developments and they will issue any necessary warnings when needed.
Finally, Mexican banks do not currently accept crypto transactions because no law or regulation forces them to do so either.
How can I buy Bitcoin legally in Mexico?
You can buy Bitcoin in Mexico without too much hassle.
People buy bitcoins in Mexico through exchanges that are located all over the world.
Some several exchanges and companies can help you do this:
However, after much research, the best-recommended way you can buy Bitcoin in Mexico legally is by using a peer-to-peer service from crypto exchanges that support it.
To start trading in Bitcoin, all you have to do is register online at the website and find someone who will sell you Bitcoins locally.
Can you buy crypto with a credit card in Mexico?
Yes. You can buy crypto with a credit card in Mexico if you find a platform that accepts Visa or Mastercard as a form of payment.
In 2017, the Mexican Central Bank issued a statement saying that virtual currencies are not considered electronic currency, enacted any rules on their use, and banned them from being accepted as payments by vendors.
In 2018, El Universal reported that Mexican financial authorities had implied they would regulate cryptocurrencies sometime in the future to make sure traders complied with trust requirements for electronic transactions and prevent money laundering activities due to bitcoins appealing anonymity features that allow users to avoid reporting transaction data to tax agencies.
Is Coinbase legal in Mexico?
Yes, Coinbase is legal in Mexico.
In the most recent notice from the Mexican Senate, there has been no mention of cryptocurrency. This means that it is completely legal to use Coinbase in Mexico without any consequences.
In Mexico, Coinbase operates as a payment processor. To use it, you need a credit card or bank account. But this may change soon.
Is Binance legal in Mexico?
Yes, Binance is legal in Mexico.
Local regulations of cryptocurrencies are not clear yet (due to their recent popularity), but currently, the Mexican government has stated that it does not intend to regulate them.
In case the Mexican government decides to regulate cryptocurrencies, Binance, and other cryptocurrency exchanges will need a local bank account (or multiple) to continue operating with locals.
Until now no official regulation has been passed on cryptocurrencies in Mexico, but there has been a lot of discussions about which way things are going to go.
Some officials have publicly stated that they see the potentials of both blockchain technology and Cryptocurrencies as tools for economic growth, while others have mentioned them as threats to national security due to their lack of regulation.
How can I sell my Bitcoin in Mexico in 2021?
You can sell your Bitcoin in Mexico through cryptocurrency exchanges.
The price is determined by the cryptocurrency market so there are no specific fees you need to pay.
If your Bitcoin does not have a value, then you can sell it for pesos or maybe even USD depending on what exchange platform you use.
You should be able to find exchanges that allow people in Mexico to trade Bitcoins through their website.
There are also a few Mexican exchanges that you can sell your Bitcoins through with ease such as Coinmama or Bitso.
Can I convert Bitcoin to cash in Mexico?
Yes, you can convert your Bitcoin to cash in Mexico.
If you’re in a hurry, one of the most convenient methods is to convert your BTC into MXN at a bitcoin exchange that offers a BTC/MXN trading pair, such as Bitso or Bitlem. You may then withdraw your pesos from the bank account.
Another option is to use a peer-to-peer supported exchange, such as LocalBitcoins, Binance, or BitQuick.
These are great if you want more privacy because they’re faster and don’t require your personal information.
What is the future of cryptocurrencies In Mexico?
The future of cryptocurrency in Mexico is in a very early stage, there are speculations that cryptocurrency will replace fiat money in the future.
However, it is still too soon to say when this might happen and whether cryptocurrencies would be adopted by everyone.
What we can tell from here with certainty is that cryptos have already made their own space in the Mexican economy. In Mexico City alone, several crypto ATMs have already been installed.
Lately, the number of cryptocurrency exchanges available in Mexico has also increased which means that it is not hard for local investors to buy and sell their cryptocurrencies when they want
However, there are countries with more open minds when it comes to investing in cryptos than Mexico. For example, Estonia is planning to implement its cryptocurrency, Estcoin.
Despite this, Mexico is also fostering its relationship with cryptocurrencies because it has already recognized Bitcoin as a legal payment method. What might be more interesting is that Mexican authorities are interested in using blockchain technology for their country’s voting system.
In short, the future of cryptocurrencies in Mexico is promising.
The Mexican economy is also quite stable which means that investing in cryptos can be a good way to diversify your portfolio. What’s more, the government and regulators are also open to evolving with cryptocurrencies.
Although it is too soon for anyone to say that this will happen anytime soon, we might be able to see Mexico as a top cryptocurrency country in the future.
Is Cryptocurrency banned in Mexico?
No, cryptocurrency is not banned in Mexico.
In fact, as cryptocurrencies rise in value and global adoption, many countries are now looking to cryptocurrency as a way to promote economic growth.
However, regulators have reiterated that this means it is important for holders of cryptocurrencies to study their specific obligations, given their volatile nature.
Furthermore, even with the promise of new opportunities arising from the utilization of digital assets and distributed ledger technology by fintech companies operating in compliance with Mexico’s national securities market regulation, investing in bitcoin can be considered HASSLE RISKY at best because ICOs are still unregulated until Fintech projects reach a certain volume to be considered as a market player.
Is trading in cryptocurrency legal in Mexico?
Trading in cryptocurrency is not illegal in Mexico.
However, there are no laws in place to regulate cryptocurrencies.
This means that you can buy and sell cryptocurrency for cash or goods/services like any other trade transaction. However, it is not regulated by the government which could pose some problems if something goes wrong with your trading transactions (i.e., fraud).
Therefore, we recommend that you do your research before venturing into the world of cryptocurrency trading.
Is investing in cryptocurrency legal in Mexico?
It’s not illegal, but it must be remembered that cryptocurrencies are a high-risk investment.
In Mexico, there is no reliable authority that provides ratings for different blockchain projects. Moreover, the cryptocurrency market is unregulated and highly speculative. Promoters of many new digital currencies often make fraudulent promises to investors about unrealistic rewards from transfers from one coin to another.
Finally, there have been several warnings issued against this type of investment in Mexico by financial authorities such as the Bank of Mexico and Finance Minister Luis Videgaray Caso.
For these reasons alone it’s difficult to recommend investing in crypto assets even though they’re not expressly prohibited by law in our country since they carry very high risks with little or no regulation or guarantees.
Note: before you invest in any cryptocurrency project make you have made good research on the company behind it, its system, or its limitations.
Is mining cryptocurrency legal in Mexico?
There are no specific rules applicable to mining. However, in Mexico, a general principle applies; whatever is not prohibited is allowed.
Therefore, as there are regulations or prohibitions regarding cryptocurrency mining, miners are free to conduct the activity.
However, there is a possibility that this legal establishment will change in the future as an increasing number of people start using cryptocurrencies and the associated technologies. This may put pressure on legislators to introduce specific rules for crypto-mining including taxation aspects that might be considered unfair or non-compliance with the current tax rules.
In addition, it is advisable to keep in touch with local authorities and get legal advice before starting mining activities.
Is buying and selling cryptocurrency legal in Mexico?
Yes, it is legal to buy and sell cryptocurrency in Mexico.
You need a Mexican bank account to transfer the pesos you purchase with bitcoin from Coinbase’s site to your savings account as per article 178 of the Banking Law which reads as follows: “It is prohibited for any person or corporation, including those covered by special legislation, to buy or offer for sale from their own fund’s securities issued from abroad”
In this case, there’s no risk since you’re not buying security issuing with bitcoin but a currency itself.
Is Cryptocurrency Legal in Mexico – Final Thoughts
Yes, it is legal, and Mexico has a legislative framework to regulate the use of cryptocurrencies.
The government agency responsible for this regulation is called National Banking and Securities Commission (CNBV). It’s tasked with creating policies that cover cryptocurrency transactions.
In 2014, the CNBV established that cryptocurrencies are not considered legal tender. However, they do have an equivalent value and can be used as a means of payment or exchange in Mexico as long as it’s done under certain conditions.
What those conditions are is explained by two different regulations: one on electronic payments systems (SPEI) and the other on payment systems (SPEI).
In the first one, it’s explained that cryptocurrencies can be used as a means of payment and exchange in Mexico. However, they cannot be considered legal tender nor currency because none is issued by the government or central bank.
The second regulation states that electronic payments and exchanges must follow certain requirements:
- Be executed between two parties
- Is a transaction that doesn’t require the physical delivery of money or cryptocurrencies.
So if you want to pay for something with crypto, you can do so as long as it’s just peer-to-peer.