Navigating Compliance with Mexico's FinTech Regulations
Mexico has established itself as a leader in the fintech industry with the introduction of the FinTech Law in 2018. This legislation, also known as the Law to Regulate Financial Technology Institutions, aims to promote innovation and integrate new technologies with existing banking and financial services.
Authorization and Registration
To operate legally, fintech firms must obtain authorization from the Mexican financial regulator, the CNBV (National Banking and Securities Commission). This involves meeting specific licensing requirements and maintaining an authorized legal representative in Mexico.
Transparency and Reporting
Fintech companies are subject to stringent reporting obligations, including anti-money laundering (AML) requirements and periodic disclosure of financial and operational data to CNBV and other relevant authorities. The FinTech Law mandates AML reporting but does not set specific reserve requirements for stablecoins, leaving compliance to standards such as external audits and solvency proofs.
Capital and Reserve Requirements
While the FinTech Law sets parameters for managing financial risks, it notably does not impose explicit reserve requirements on stablecoins. However, companies must prove solvency and traceability to Banxico (Mexico’s Central Bank) and CNBV, often via 100% backed and audited stablecoins to comply with transparency norms.
Data Sharing and Security
Following the enactment of Mexico’s General Law of the National Public Security System in 2025, fintech and other covered entities must regularly contribute relevant data to the National Information System. This includes ongoing security and transactional data sharing—even if services are provided remotely to Mexican customers—raising significant obligations around data privacy and cross-border compliance.
Competition and Antitrust Compliance
Due to Mexico’s 2025 antitrust reforms, fintech companies must navigate stronger regulatory oversight by the National Antitrust Commission (CNA). This includes compliance with stricter merger controls, risk mitigation via compliance certification programs, and avoidance of monopolistic behaviors, with severe penalties for violation (up to 15% of revenues).
Corporate and Investment Restrictions
Foreign fintech investors face no broad limits on ownership, except in areas reserved by law. Establishing a legal entity or branch requires authorization from the Ministry of Economy, and foreign investors must register with the SAT for tax purposes, declaring activities and income taxable in Mexico.
In addition to these regulations, fintech companies must comply with specific responsibilities, such as legal naming requirements and transparency/publicity requirements. They must also classify clients based on their risk level, conduct due diligence procedures, and request permission from the CNBV to receive or transfer cash funds in Mexican Pesos (MXN).
The FinTech Law creates a regulated framework focusing on licensing, transparency, consumer protection, AML compliance, and data security. Recent reforms in antitrust and public security laws add layers of regulatory scrutiny that fintech firms must meet when operating in Mexico.
Mexico has become the first country in the region to create a clear set of requirements for the fintech industry, marking a significant step forward in the digital transformation of its financial sector. This move is part of Mexico's ongoing efforts to improve financial inclusion, which the country has been working on since 2015.
- Fintech firms in Mexico must comply with specific licensing requirements set forth by the CNBV, including the registration of an authorized legal representative and meeting certain licensing conditions.
- In addition to licensing, fintech companies in Mexico are subject to stringent reporting obligations, such as anti-money laundering requirements and periodic disclosure of financial and operational data to the CNBV and other relevant authorities.
