Mexican authorities warn financial institutions against using crypto-assets

Mexican financial authorities issued a statement on Monday reiterating that cryptocurrencies are not legal tender in the country and warning that financial institutions could face sanctions if they use them, reports Reuters

The statement by the nation’s central bank, finance ministry and banking regulator appears to be a response to the announcement by Mexican billionaire Ricardo Salinas Pliego that his bank would accept bitcoin. “Sure, I recommend the use of Bitcoin, and me and my bank are working to be the first bank in Mexico to accept Bitcoin,” Salinas, who owns Banco Azteca, tweeted on Sunday

In 2018, Mexico passed a law that stating that under no circumstances would cryptocurrency be considered legal tender. According to Reuters, finance minister Arturo Herrera said during a news conference on Monday that the current rules prohibit the use of cryptocurrencies in the financial system and that this would likely not change in the near term.

“The financial authorities reiterate their warnings … on the risks inherent in the use of so-called ‘virtual assets’ as a means of exchange, as a store of value or as another form of investment,” the new statement read.