With this, Bitso reportedly claims to be the first regulated platform in Latin America, which has also opened a door of possibilities. At the time, when regulators in Washington and other nations are banning Bitcoin and digital tokens, the initiative is good news.
In its official blog, Bitso said that, From August 1st, the company’s custody, withdrawals, deposits, and trading of cryptocurrencies on its platform will be monitored by GSFC under a framework particularly developed to regulate businesses in a distributed ledger technologies (DLT) Sector.
GSFC’s Distributed Ledger Technology Regulatory Framework concluded in January 2018, focuses on providing reliable consumer protection and security. Still, the exchange claims that the framework’s application is “conveyed through the application of principles rather than rigid rules” and is suitable to maintain speed with the speed of innovation in the DLT Sphere.
Bitso further says that the choice of cooperation with the GFSC refers back to a meeting with the regulator’s team at the time of international FATF forum. Despite its compliance into Gibraltar’s crypto regulatory scheme, the exchange states that it will keep working closely with local financial regulators helping in the Legislation of Fintech Law in Mexico.
How will I be able to use Bitso Crypto Exchange?
You don’t have to worry about anything, as the interface on the mobile, app and APIs will remain the same. Other things about users’ experience, clients who are interacting with Mexican Pesos can still use existing services such as SPEI, cash funding or Bitcoin Transfer. All these things will still be under the monitoring of Bitso SAPI. de CV, that is regulated under Mexico’s Fintech Law.
Talking about crypto interactions, all activities from August will be in handled by GFSC DLT Regulatory Framework. The firm claims to openly indicate and uphold a strict separation in services offered by Mexico and Gibraltar.
The regulation of Bitso is one of the essential moves in Latin America, which will enable various companies to get regulated and prevent them from being banned at some time. When more and more companies will be regulated, the use of Bitcoin and Cryptos will increase. For example, a region going through crises, Venezuela will be using Bitcoin as a savior from inflation.
Moreover, some of the crypto-blockchain events were conducted in the last few months, out of which, most of them became successful. Once leading firms such as Ethereum, Ripple, Binance, Coinbase, etc. are being regulated, the usage of cryptocurrency will increase exponentially, as the region has enough potential for the industry.