Saturday, September 30, 2023

Binance-without-regulation-cannot-develop-cryptocurrency-market Grupo Milenio

In Mexico and the world, the cryptocurrencies They run with a player that helps get more people into banking; However, without a REGULATIONS nor will they help develop the market, considered Daniel Mangabeira, vice president of government affairs at Binance.

“To achieve a greater adoption of these virtual assets In Mexico, there must be regulatory certainty (…) If we don’t have regulatory certainty, global companies can come here and provide services to users, but the market will not improvehe said in an interview with Millennium.

He emphasized that, in Mexico, the use of “digital currency” increasingly; according to American company analysis of blockchain, Chainalysis the country occupies the place number 28 of 146 on the adoption rate of cryptocurrency.

Cryptocurrencies help get more people into banking. | special

Compared to Latin America, according to the level of adoption of cryptocurrencies Mexico is behind countries such as:

  • Brazil which occupies the number seven spot.
  • Argentina which is in position 13.
  • Colombia on the 15th.
  • Ecuador on the 18th.

“It’s useful for people who don’t have it now access to banks. That part of the population has resorted to cryptocurrencies as an alternative. So, I have no doubt that they will be one place for financial inclusion in the future”he emphasized.

Daniel Mangabeira advocated to continue some degree of purchasing power they must resort to an alternative, and that is cryptocurrencies.

By regulation

In the June 2023 financial stability report, the Bank of Mexico (Banxico) noted that the virtual asset market they are not big enough relative to the traditional financial system.

Despite this, he admitted that the digital environment continues to evolve rapidly so it is important to monitor its progress, to avoid emergence of risks which affects users and financial stability.

He emphasized that his position is the financial system and virtual assets keep a healthy distance so it was determined that the financial institutions in Mexico there are no positions in said assets, don’t buy them under warranty y do not finance leveraged positions to their clients.

However the Undersecretary of Finance and Public Credit, Gabriel Yorio commented that Mexico should define a regulatory policy regarding virtual assets, in line with what other countries do; In some, the decision was made to ban them completely, while in others they are already used in a regulated way.

“There is still one year left in the administration and we can talk about the unions what should be done in terms of crypto assets in Mexico. A policy definition has not been made and I think it is important”he commented.

Nation World News Desk
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