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 was granted one.
This spring, the European Economic Area-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, drawing industry-wide interest.
