At a time when regulators in Washington and other major countries are lashing cryptocurrencies, pleasing news has come for Mexico. The Gibraltar Financial Services Commission(GFSC) will start the regulation of the Mexico based crypto trading platform Bitso. The regulation will be effective from August 1. With this move, the platform has become the first regulated crypto platform of Latin America.
Bitso announced the acquisition of its license to operate the custody, purchase, shipment, withdrawal, and trading of cryptocurrencies by GFSC. The GFSC’s distributed ledger technology will regulate Bitso’s company’s trading, storing, withdrawal and deposits. Though GFSC will regulate all the crypto operations, those involving interaction with Mexican pesos will be subject to the fintech law of Mexico.
Making Bitso the first regulated crypto platform of Latin America is a landmark move. This will allow more companies to get regulation and avoid getting banned at some point. Thus, the adoption of Bitcoin and other cryptocurrencies will see a rise. For instance, one of the crisis-ridden countries in the region, Venezuela has been utilizing Petro crypto as the savior from hyper-inflation.