Fintech Market Overview

This article does not constitute legal advice.

Digital assets in Mexico


Although digital marketplace activities are not regulated, activities within marketplaces that facilitate the sale and purchase of virtual assets are regulated, and provide a fiat gateway for Mexicans interested in holding virtual assets, as outlined in subsection iii.1

A topic where the current legal framework has been mute is the use of virtual assets as securities. In Mexico, securities were regulated by the Securities Market Law, which defines a security as:

"the shares, obligations, bonds, optional titles, certificates, promissory notes, letters of exchange and other named or unnamed negotiable instruments, whether recorded or not in a registry, susceptible to circulation in securities markets, issued in series or in mass and that represent the stock of a company, a part of an asset or the participation in a collective credit or any individual right, in terms of applicable local or foreign laws."1

Banxico has a (non-binding) view that virtual assets representative of an underlying asset (including shares and bonds) are not actually virtual assets. This distinction departs from the definition given by Mexico's Fintech Law, but it provides insight into how Mexican regulators perceive virtual assets as tradable financial instruments.2

In 2018, the Mexican Federal Law to Prevent and Identify Operations with Illicit Resources was revised to encompass operations involving virtual assets, following in line with international standards set by the Financial Action Task Force's Guidance for a Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers. This amendment was aimed at ensuring anti-money laundering/counter-terrorist financing compliance; notifications were thus mandated for vulnerable activities.1

Lastly, it is worth noting that, from a tax standpoint, virtual assets are viewed by the Mexican tax authorities as no different from other assets; therefore, any sale of digital assets would be subject to the same general income tax and value added tax provisions as other moveable assets.3

Smart contracts in Mexico

Fintech in Mexico

Fintech in other countries

  1. https://thelawreviews.co.uk/title/the-financial-technology-law-review/mexico
  2. http://www.banxico.org.mx/sistemas-de-pago/1---que-es-un-activo-virtua.html
  3. http://www.prodecon.gob.mx/Documentos/bannerPrincipal/2021/CRIPTOMONEDAS.pdf