There has been doubts about the exact legal status of bitcoin in Mexico. There have been few reports stating that the Government of Mexico has imposed a ban on bitcoin and other cryptocurrencies. However, now there are conflicting reports coming out of the country starting with a blog post written by Victor Hernandez where he begged to differ.
El Universal, a Mexican news publication recently published a story reporting the alleged ban on cryptocurrency in Mexico by the country’s taxation authorities, Mexican Tax Administration Services (SAT). Most publications picked up the story and ran it in their respective news sites as well. However, it turns out that the decision announced by SAT was misinterpreted. Victor Hernandez decided to clear the air about bitcoin ban in Mexico by posting an article on his blog site.
According to Victor Hernandez, the bitcoin ban stated in El Universal’s report is not applicable to all bitcoin transactions in Mexico but only to large volume transactions raising money laundering suspicions among the authorities. Victor Hernandez states that peer to peer bitcoin transactions, online bitcoin payments for goods and services, accepting bitcoin payments in stores are perfectly legal as long as it doesn’t cross the prescribed limits set by the government to counter money laundering.
Currently bitcoin transactions are subject to strict limits implemented by the government. Real estate, jewelry, arts, cards and foreign exchange have maximum bitcoin payment limits set at $38750, $15500 and $1500 per month respectively. The bitcoin community can now breathe easy, thanks to Victor Hernandez’ blog post.
Bitcoin usage is gradually picking up in Mexico. Even bitcoin exchanges and services are trying to tap into the Mexican bitcoin market in the recent days. It is further proven by a string of mergers and acquisitions of Bitcoin exchanges operating in Mexico in the recent days.
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