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.

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.