Mexico authorities warn of risks of cryptocurrencies

MEXICO CITY (Reuters) – Mexico’s finance ministry and central bank warned on Wednesday of the risks associated with cryptocurrencies and investment schemes known as initial coin offerings.

FILE PHOTO – A man touches a screen of a bitcoin ATM in Vilnius, Lithuania December 6, 2017. REUTERS/Ints Kalnins

Amid the growing popularity of cryptocurrencies such as bitcoin, the authorities, together with banking and securities regulator CNBV, said in a statement that the currency is not officially recognized in Mexico as a legal form of payment.

Some initial coin offerings that originate in Mexico could violate the nation’s law of markets and securities, constituting a financial crime, the authorities said.

Reporting by Julia Love and Anthony EspositoEditing by Chizu Nomiyama

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