16 March 2018
On March 1, 2018, the Mexican Congress passed the Financial Institutions Act (Ley para Regular las Instituciones de Tecnología Financiera) (the "FinTech Act" or the "Act") for, among others, the regulation of FinTech firms and crypto-currency transactions.
The FinTech Act was designed on the principles of financial inclusion, customer protection and competition, and also takes into account anti-money laundering and terrorist financing (AML/CFT) risks associated with these new products and services. The FinTech Act primarily regulates two types of FinTech firms or platforms: (i) crowdfunding companies, which serve as platforms to connect entrepreneurs with investors and fund new ventures on an equity-base, debt-base and royalty-base and (ii) e-money companies, which will render, through digital means, electronic payment services of "fiat currency" or "crypto-currencies."
Mexico Passes Groundbreaking FinTech Act