Mexico Introduces New Financial Technology Law

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Mexico has taken a significant step in regulating its financial technology institutions (FTIs) with the implementation of a new law. This legislation came into effect last month and sets the stage for the regulation of crowdfunding, virtual assets, and electronic payment firms.

Key Provisions of the Law

• FTIs must obtain authorization from the National Banking and Securities Commission (CNBV), an independent agency of the Secretariat of Finance and Public Credit.
• FTIs must disclose investment risks and explicitly state that a client’s virtual currency is not legal tender.
• FTIs will only be permitted to operate with virtual assets or currencies authorized by the Central Bank.

Impact on Specific Cryptocurrencies

The exact impact on specific cryptocurrencies remains unclear at this stage. However, it is likely that FTIs will need to adapt quickly to comply with the new requirements as the regulatory landscape takes shape.

Timeline for Implementation of Enabling Regulations

• The CNBV, Central Bank, and other authorities will publish enabling regulations over a period of:
  • 6 months for certain aspects of the law
  • 12 months for others
  • 24 months for the remaining parts of the legislation

By implementing this new law, Mexico aims to provide a clear framework for FTIs to operate within. As the regulatory landscape evolves, it is crucial that FTIs adapt quickly to comply with the new requirements and ensure their continued success in the market.