There Is No Bitcoin Ban In Mexico -
Bitcoin Acceptance

There Is No Bitcoin Ban In Mexico


A recent article from the media site El Universal has incorrectly espoused that Bitcoin is now banned in Mexico per a recent decision by the Mexican Tax Administration Services (SAT). The Mexican SAT, the equivalent of the United States IRS, has not banned Bitcoin. Instead, it has merely clarified that the existing bans on large transactions using cash (heinous in and of themselves), also apply to Bitcoin.

Also read: Snoop Dogg Learns One Reason Why Bitcoin Is Better Than Cash: Civil Forfeiture

Bitcoin Is Not Banned In Mexico

flag-815077_1280Influential blogger Victor Hernández wrote a post to counter the El Universal piece and clarify that Bitcoin is not banned in Mexico. Bitcoin is still allowed for online transactions; you can still use Bitcoin to pay at a restaurant in Mexico City. Transactions that are “vulnerable” to money laundering have long been under the watchful eye of the Mexican government, by way of regulation. Hernández also chided the El Universal author for implying that there was a straight up Bitcoin ban in Mexico.

Mexican Cash Ban Extended to Bitcoin

The Mexican government, with its cartel problem, has to deal with a lot of money laundering and in doing so have created somewhat draconian prohibitions on cash. Jon Matonis explained the Mexican cash ban years ago on Forbes. You aren’t allowed to use cash for real estate transactions over $38,750. Also, you can use cash for jewelry, art, or car transactions of over $15,500. Earlier, in 2010, the Mexican government also limited foreign exchange cash transactions to $1,500 per month. Bitcoin is now technically under those same limitations, though the enforcement of such will be hard. Meanwhile, Bitcoin companies and exchanges continue to thrive in Mexico. Whether or not using one of these companies to process your car or real estate payment will be OK with the Mexican government or not remains to be seen.

What do you think about the Mexican cash ban being extended to Bitcoin? Comment below!

Images from Pixabay.

Caleb Chen

  • Hello. Victor Hernández from here. One additional item: The anti-money laundering law of 2013 applies only to a limited amount of transactions that usually require the use of large amounts of money (for Mexico’s standards). And it only applies to transactions that exceed a specific monetary value. For example: drug cartels launder money by buying cars, houses, jewelry, and other luxury items. The SAT still allows those purchases with cash as long as they do not go over certain limits. About 20K USD for a car, 38K for a house and so on. SAT especified that bitcoin can not be accepted for transactions equal or higher in price to the permitted limit. So in theory, you could buy a cheap used car in Mexico using bitcoin -or cash-, as it probably would still be under the amount deemed “vulnerable” by the authorities, as the prohibitions apply to transactions over a specific value.

    The real problem is for people who want to buy expensive SUVs or luxury homes using cash. While I’m pretty sure people can get away with it by simply not reporting the cash to the SAT and by not depositing it in a bank account, a legitimate car dealer would probably be in deep trouble with the Mexican authorities if he sold a luxury SUV for cash.

    But for people who want to pay for a meal using bitcoin, or who want to buy digital content using bitcoin, or pay for everyday stuff, is not a problem.

  • Jeriko

    What about people who want to donate certain amount of bitcoins, for instance to blogs? is it allowed?