Bitso Is Movinâ€™ On Up
The company will be overseen by the Gibraltar Financial Services Commission (GFSC), making it one of the first regulated exchanges within the region. It will also be compliant with policies set forth by the commission designed to bring maximum protection efforts and security to its customers.
An announcement regarding the relationship between both parties reads:
This license gives Bitso a leading position as one of the most innovative financial services providers in [Latin America] and the world by becoming the first exchange platform in [Latin America] licensed and regulated by the GFSC.
Presently, the exchange is also working under Mexican fintech laws, while the GFSC will monitor all transactions that occur through the platform to ensure they are free from illicit activity.
This is the right move if Mexico is looking to establish itself as a swelling cryptocurrency region. If cryptocurrencies and blockchain technology are looking to become mainstream, regulation is beyond necessary. Without it, we cannot secure the hope and participation of institutional investors, and without institutional players, digital currencies have no chance of excelling in the financial space.
Earlier this week, Treasury Secretary Steven Mnuchin warned that stronger regulation was headed for the U.S. Many panicked when this statement was made, and even bitcoin took a nasty hit, dropping to less than $9,700 in the process.
However, one needs to consider that the U.S. is becoming one of the biggest crypto markets in the world. How can the country attract new investors, new money and new businesses without the proper protections in order? In addition, everyone became terrified when this drop occurred, but clearly the drop was only temporary, and the bulls are back on track. At press time, the price of bitcoin is just shy of $11,000 - a near $600 spike from just yesterday alone.
Regulation Is Necessary for Crypto to Grow
Bitcoinâ€™s growing in maturity, which suggests an even stronger need for stricter regulatory practices. Bitcoin must be allowed to grow and expand, and without the right laws in place, the currency cannot do this. In the long run, one can argue that the “threat” - if you can even call it that - of further legislation in the U.S. worked to expand bitcoinâ€™s price to what it is now considering many of us are smart enough to realize that without regulation, the crypto space can never be taken seriously.
Latin America has become a major haven for crypto activity throughout the years, particularly in countries such as Brazil and Venezuela. Submitting to the regulation of the GFSC was the smartest thing for Mexico to do if itâ€™s looking to play in the big leagues.
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Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries.
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