Mexico’s Finance Ministry and the Central Bank has warned on Wednesday by claiming that the Cryptocurrencies are risky and not to invest in them. They also described that the fundraising method which is known as ‘Initial Coin Offerings‘ (ICOs) is illegal and it could violate the Mexican Financial Law.
Among the constantly growing popular cryptocurrency which is known as bitcoin, the authorities along with the banking and security regulator told in a statement that, these currencies are not officially recognized in Mexico as a legal form of the payment.
The statement also described that, to date, there have been no initial coin offerings originating in Mexico.
The statement described:
“However, depending on their specific characteristics, some ICOs that originate and are emitted in Mexico could violate the Markets and Securities Law and constitute a financial crime.”
The authorities advised only the seasoned investors to dip in cryptocurrencies and to remain watchful for the sign of no fraud.
The stated claimed regarding those investors:
“Given their nature, virtual currencies have shown high volatility, as they are the subject of broad speculative activity.”
Since Bitcoin, the highest growing cryptocurrency, increased to all-time highs this week, the trading services suffered outages, increasing the questions regarding the reliability of the nascent platforms.
Coinbase, which is known as the popular digital currency wallet, went down due to the heavy traffic on Tuesday, and the Bitcoin exchange which is called Bitfinex was also forced to shut down its website after a wave of junk online requests.