Mexico Elects New President, Here’s What It Means for Crypto

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As an experienced financial analyst, I believe that Claudia Sheinbaum’s election as Mexico’s president marks a significant milestone for gender equality in politics and could result in continuity of the country’s current cryptocurrency policies. Given her alignment with the Morena party and its crypto-related initiatives under Andres Manuel Lopez Obrador, it is likely that Sheinbaum will maintain a similar stance towards digital assets.

As a crypto investor, I’m excited about the recent election of Claudia Sheinbaum as the president of Mexico. Being the first woman to hold this esteemed position in Mexican history, her victory is a significant milestone. Given her alignment with the ruling Morena party and the crypto-friendly policies of her predecessor Andres Manuel Lopez Obrador, it’s reasonable to anticipate that Mexico will likely continue its supportive stance towards cryptocurrencies.

Mexico’s Current Crypto Regulatory Scene

As a crypto investor, I’ve noticed that the Morena party hasn’t presented a clear regulatory scheme for the digital asset sector yet. On the other hand, the Sheinbaum party’s administration has taken action by imposing a 20% tax on crypto gains. This means that if I were to make profits from my crypto investments under their government, I would be required to pay 20% of those gains as taxes.

“Virtual assets will not be recognized as equivalent to local currency or foreign currency within the jurisdiction of my country, nor will they serve as a substitute for legal tender or other assets denominated in legal tender or foreign currency.”

In addition, the FinTech Law, passed in March 2018, and related regulations mandate that crypto exchange platforms must be registered under international anti-money laundering (AML) and countering the financing of terrorism (CFT) guidelines. Importantly, a recent update on June 7, 2023, incorporated terms such as “Blockchain” and “Metaverse” into the legal framework, acknowledging the significance of data stored in these technologies and regulating them to enhance security.

As a regulatory analyst, I’ve observed that Mexican legislation lacks clear-cut guidelines distinguishing between different categories of digital tokens, including NFTs, stablecoins, utility tokens, and Central Bank Digital Currencies (CBDCs).

Would Sheinbaum Reconsider Her Crypto Stance?

Mexico is the top destination for remittances sent from the United States, accounting for over 95% of the total funds received by Mexicans residing abroad. This substantial flow of money offers a promising avenue for cryptocurrencies to facilitate and enhance the security of these financial transactions. However, it remains unclear if the ongoing crypto-related advancements in the US, coinciding with Mexico’s election periods, will influence the Morena party to reevaluate its relaxed approach towards digital currencies.

In recent months, the crypto sector in the United States has experienced remarkable growth and advancement. With former President Donald Trump’s (presumptive Republican presidential nominee) acceptance of cryptocurrency donations and advocacy for US dominance in this field, President Biden’s campaign is engaging industry experts for policy guidance. Additionally, the Securities and Exchange Commission (SEC) has finally authorized the long-delayed spot bitcoin exchange-traded funds, and is rumored to soon approve a similar product for ether.

Sheinbaum exudes confidence in preserving solid economic links with the United States, irrespective of Trump or Biden winning the presidency. According to her, the economic bond between the U.S. and Mexico is resilient enough to foster favorable interactions with either administration.

As Sheinbaum begins her presidency, the crypto community is intrigued to learn her stance on digital assets. Building upon her predecessor’s foundational policies, there exists ample opportunity for advancements in Mexico’s regulatory framework for cryptocurrencies.

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2024-06-03 15:53