RIO DE JANEIRO, BRAZIL – Mexico on Monday reiterated that financial institutions in the country are banned from conducting transactions with cryptocurrencies.
In a statement jointly issued by the Banco de Mexico (Banxico), the country’s Finance Ministry and other authorities, bitcoin, Ether, and XRP, among others, are described as virtual assets through which institutions may not offer services.
“Virtual assets are neither legal tender in Mexico nor are they currencies under the current legal framework,” the statement said.
According to the document, financial institutions that conduct or offer unauthorized transactions with “virtual assets” will be in violation of regulations and will be subject to applicable sanctions.
The statement says that the assets are highly volatile in value, and points out that cryptocurrencies are considered speculative. “Although they can be traded, they do not fulfill the roles of money, as their acceptance as a means of payment is limited and they are not a reserve asset or a reference of value,” the document says.
The announcement comes amid preparations in El Salvador, a country close to Mexico, to accept bitcoin as legal tender.