Mexico Has Not Banned Bitcoin

A recent article from Venezuela’s O Globo newspaper incorrectly reported that Bitcoin has been banned in Mexico due to a recent decision by the Mexican Tax Administration Service ( SAT ). The Mexican SAT , the same agency as the U.S. IRS, has not banned Bitcoin. Instead, it has clarified that the existing ban on large dirty cash transactions does not apply to Bitcoin.

Bitcoin is not banned in Mexico

Victor Hernández, an influential blogger , wrote a post criticizing Venezuela's El Globo and clarifying that Bitcoin is not banned in Mexico. Bitcoin is still allowed for online transactions; you can still pay with Bitcoin at restaurants in Mexican cities. Transactions that are vulnerable to money laundering have long been regulated by the Mexican government. Hernández also criticized the El Globo writer for not directly reporting that Bitcoin is banned in Mexico.

Mexico's Cash Ban Extends to Bitcoin

The Mexican government has its own cartel problems and has to deal with a lot of money laundering, so it has issued some pretty tough money bans. Jon Matonis covered Mexico's cash ban in Forbes magazine a few years ago. You're not allowed to use cash for real estate purchases over $ 38,750 . But you can use cash to buy jewelry, art, and vehicles over $ 15,500 . Earlier, in 2010 , the Mexican government also restricted foreign exchange transactions to no more than $ 1,500 per month .

Bitcoin is now subject to these restrictions, even if they will be difficult to enforce. Meanwhile, Bitcoin companies and exchanges continue to be established in Mexico. Whether you can trade your car and real estate through these companies, and whether these transactions can be approved by the Mexican government, remains to be seen.