Coinspeaker
Mexico Elects New President, Here’s What It Means for Crypto
Claudia Sheinbaum, the former mayor of Mexico City, has been elected as the president of Mexico, marking a historic moment as she becomes the first woman to hold this esteemed position. Her victory signals a likely continuation of Mexico’s existing crypto policies, given her alignment with the ruling Morena party and the policies of her predecessor, Andres Manuel Lopez Obrador.
Current Crypto Regulatory Landscape in Mexico
The Morena party has yet to propose a comprehensive regulatory framework for the digital asset sector. However, under Sheinbaum’s party, the government has imposed a 20% tax on crypto investors’ gains. The policy clarifies that:
“In no case will virtual assets be understood as legal tender in national territory, foreign currency or any other asset denominated in legal tender or foreign currency.”
Additionally, the FinTech Law, enacted in March 2018, along with other regulatory policies, mandates that crypto exchange platforms register under global anti-money laundering (AML) and terror financing standards. The latest reform to this law on June 7, 2023, introduced terms like “Blockchain” and “Metaverse” into the regulatory framework, acknowledging the evidential value of blockchain-stored information and regulating these technologies to enhance security.
However, Mexican regulations do not specifically address various types of tokens such as NFTs, stablecoins, utility tokens, and CBDCs.
Will Sheinbaum Reevaluate Her Crypto Stance?
Mexico is the largest recipient of remittances from the United States, accounting for over 95% of the total remittances received by Mexicans. This presents a significant opportunity for crypto to streamline and secure these financial transfers. However, it remains uncertain whether recent crypto-related developments in the US, coinciding with Mexico’s election campaigns, will prompt the Morena party to reconsider its relatively indifferent stance on crypto policy.
In recent months, there have been significant crypto developments in the US. Former President Donald Trump, the presumptive Republican presidential nominee, has accepted donations in cryptocurrencies and advocated for the US to maintain its leadership in the field. Meanwhile, President Biden’s campaign is consulting with industry members for policy advice. Additionally, the US Securities and Exchange Commission has approved long-awaited spot bitcoin exchange-traded funds and is reportedly close to approving a similar product for ether.
Sheinbaum has expressed confidence in maintaining strong economic ties with the US, regardless of whether Donald Trump or Joe Biden wins the presidency. She believes that the economic integration between the US and Mexico is robust enough to sustain positive relations with either administration.
As Sheinbaum prepares to assume office as the new president, the crypto community eagerly awaits her stance on digital assets. While her predecessor’s policies have laid some groundwork, there remains significant potential for growth in Mexico’s crypto regulations.
Mexico Elects New President, Here’s What It Means for Crypto
