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Fintech Market Overview

This article does not constitute legal advice.

Virtual currencies in Mexico

Fintech Software

The issuance of e-money and the management of e-wallets is entrusted to IFPEs. Clients, individuals and entities are authorised to fund their IFPE accounts with Mexican pesos, foreign currency or digital assets. The IFPE would then manage a ledger of its clients' accounts. Amounts held in the accounts may be used by clients to make payments to any third parties (which may be processed by the IFPE, which is entitled to collect a fee), to act as money transmitters sending money to any beneficiary located in Mexico or offshore, and to serve as a crypto marketplace. IFPEs may also issue debit cards to their users to allow access to the amounts deposited in clients' wallets.1

As it relates to cryptoassets, the Fintech Law has included the potential to designate IFPEs as a legal fiat gateway. As such, an IFPE would be able to 'put third parties in contact with one another with the purpose of buying, selling, or in any other way transferring virtual assets' and would 'buy, sell or, in general, transfer virtual assets on their own behalf or on behalf of their clients'. IFPEs would also hold virtual assets serving as a crypto wallet. Although the Fintech Law introduced these activities for IFPEs, Banxico issued a virtual asset regulation on 30 September 2020, which severely restricts the use of virtual assets, limiting this to internal transactions of IFPEs and banks only.1

Digital assets in Mexico

Fintech in Mexico

Fintech in other countries

Notes
  1. https://thelawreviews.co.uk/title/the-financial-technology-law-review/mexico
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