Bank Of Mexico Announced Its Intention To Increase Security For Cryptocurrency Operations

In an announcement released this weekend, the Bank of Mexico (Banxico) asked all institutions that make up the country’s financial system to strengthen security measures among customers or companies engaged in the “exchange or sale of cryptocurrencies.”

The bank placed particular emphasis on “strengthening the security elements in the provision of funds transfer services,” according to the 2-page document published on its official website. The central bank intends to strengthen the controls of the Interbank Electronic Payment System (IEPS) and thus raise security standards.

In the section dedicated to cryptocurrencies, five recommendations are highlighted in order to maximize the safeguarding of funds. To this end, the bank suggests the implementation of additional validations to secure the capital from transfers made via the Interbank Electronic Payment System.

Those participants in the IEPS who maintain accounts in the name of the clients shall pay the corresponding resources to the funds transfer orders they receive, on the business day following their reception, until they have the authorization of the Bank of Mexico, as administrator of the IEPS, to carry out additional validations in different periods of time in order to ensure the legitimacy of such orders.


The Bank of Mexico to strengthen security for cryptocurrency operations

Among other measures to “ensure the smooth functioning of the payment system,” the bank announced that, in the event of warnings being issued of possible attacks on the technological infrastructure, institutions should refrain from making funds available on the day of receipt.

Also, participants should use demand deposit accounts that are opened only with financial institutions authorized to offer them. These include credit institutions, people’s economic societies, community financial societies, and cooperative savings and loan societies.

As a final point, Banxico pointed out that the banks “must refrain from providing accounts to these companies so that they can be assigned to customers for the transfer of funds for the purchase of virtual assets.”

The announcement by the Bank of Mexico comes after two critical events that involved the local cryptocurrency exchange operator, Bitso, and the hacking of Chile’s banking system this week.

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