Mexican
cryptocurrency exchange Bitso will from now on be regulated by the
Gibraltar Financial Services Commission (GFSC), a July 19 announcement revealed.
An apparent first in Latin America
In
what Bitso claims is an apparent first in Latin America, as of August
1, the custody, withdrawals, deposits and trading of cryptocurrencies on
its platform will be overseen by the GSFC under a framework
specifically evolved to regulate businesses in the distributed ledger
technologies (DLT) sector.
GSFC’s Distributed Ledger Technology Regulatory Framework — finalized
in January 2018 — focuses on ensuring robust consumer protection and
security, as Bitso notes. Yet the exchange argues that the framework’s
application is “conveyed through the application of principles rather
than rigid rules” and is thus fit to keep pace with the pace of
innovation in the DLT sphere.
The agency’s issuance of a
so-dubbed DLT license to successful applicants such as Bitso has forged
the overseas United Kingdom territory regulator a reputation as a
proactive and forward-thinking actor in the global sector.
Bitso
reveals that its choice of cooperation with the GFSC stems back to a
meeting with the regulator’s team during an international FATF forum.
Notwithstanding its compliance into Gibraltar’s crypto regulatory
regime, the exchange says it continues to work closely with local
financial regulators to promote the enactment of the Fintech Law in
Mexico.
Crypto regulatory frontiers
In terms of user
experience, the company notes that while using Mexican pesos, clients
will continue to use existing services such as SPEI, cash funding or
Bitso Transfer ® — and will still be under the operational oversight of
Bitso S.A.P.I. de C.V, which is regulated under Mexico’s Fintech Law.
When
it comes to crypto interactions, all activities will from August fall
within the scope of the GFSC DLT Regulatory Framework. The firm pledges
to transparently indicate and uphold a strict separation between
services provided in Mexico and those provided in Gibraltar.
As Cointelegraph has previously reported,
major Singapore-based cryptocurrency exchange Huobi sealed a DLT
license from the GFSC in December of last year, weeks after the
Gibraltar Blockchain Exchange (GBX) was granted one.
This spring, the European Economic Area (EEA)-regulated Gibraltar Stock Exchange (GSX) launched listings of blockchain-powered securities on its GSX Global Market.
In February 2018, Gibraltar announced a trailblazing draft law for initial coin offerings (ICOs), drawing industry-wide interest.
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