Stablecoins in Mexico: The Urgency of Regulation Amid the Rise of Cross-Border Payments

Fintech / by Javier Pérez Moreno

In recent years, the cryptoasset ecosystem in Mexico has evolved rapidly. One of the most notable trends has been the adoption of stablecoins, particularly those pegged to the U.S. dollar, such as USDT and USDC. These are widely used in remittances, international payments, and e-commerce transactions. However, this growth has taken place amid a concerning regulatory vacuum.

Stablecoins: Between Stability and Efficiency

Unlike volatile cryptocurrencies such as Bitcoin or Ether, stablecoins are designed to maintain parity with an underlying asset, typically a fiat currency. This feature has made them attractive instruments for transferring value efficiently, seamlessly, and without the need for traditional banking intermediaries.

In Mexico, their use has become more widespread among remittance platforms, freelancers receiving payments from abroad, small businesses importing digital services, and users seeking to hedge against exchange rate volatility. Nonetheless, current regulations do not specifically address their nature or the associated risks.

A Legal Framework That Falls Short

The Law to Regulate Financial Technology Institutions (“Fintech Law”), published in the Official Gazette of the Federation on March 9, 2018, regulates the use of “virtual assets” by fintech institutions (ITFs). However, it does not distinguish between asset types or provide specific definitions for stablecoins. Banxico, through Circular 4/2019, restricted the use of virtual assets by financial entities, stating that their use must be authorized by the central bank and is limited exclusively to internal operations, without providing an expedited procedure for such authorization.

In this regard, it is important to note that in June 2021, Banxico, the Ministry of Finance and Public Credit (“SHCP”), and the National Banking and Securities Commission (“CNBV”) issued Joint Communication No. 039/2021, reiterating that financial institutions in Mexico are not authorized to offer to the public transactions involving virtual assets, including those designed to maintain a stable value (i.e., stablecoins). This communiqué underscores the lack of a specific regulatory framework for stablecoins and highlights the urgent need to develop legal mechanisms that distinguish between types of cryptoassets and their uses. There is also no clarity regarding the requirements that stablecoin issuers or custodians must meet to operate legally in Mexico, nor regarding their classification as a financial instrument, digital asset, or foreign currency.

For its part, the SHCP, through the CNBV, has maintained a focus on anti-money laundering (AML) within the financial sector, in accordance with the General Provisions on AML/CTF matters, which require specific controls for virtual asset transactions carried out by regulated entities. However, there is no specific regulatory framework for platforms that operate with stablecoins as a means of payment or store of value and that are not part of the authorized financial system. These platforms are considered vulnerable activities subject to the regime established in the Federal Law for the Prevention and Identification of Transactions with Illicit Proceeds.

Actual vs. Perceived Risks

The lack of regulation creates risks that must be addressed, such as the potential loss of parity with the underlying asset, the insolvency of unregulated issuers, or misuse for illicit purposes. However, it is also important to avoid overregulation based on perceived or speculative risks that could hinder innovation.

At bgbg, we have advised various platforms that use stablecoins as part of their business models for cross-border payments, custody solutions, or loyalty programs, always in accordance with AML/CTF compliance, best practices, efficient corporate structuring, and related tax analysis.

A suitable regulatory approach should be guided by a risk-based approach, allowing greater flexibility for models that use stablecoins for legitimate purposes, provided that standards of transparency, collateralization, and user protection are met.

International Payments: An Opportunity for Mexico

With over $60 billion in remittances sent to the country each year and a constantly expanding digital ecosystem, Mexico is uniquely positioned to harness the potential of stablecoins as a vehicle for cross-border payments. Fintech companies are already developing innovative solutions that allow users to send and receive payments with less friction than traditional banking options.

For example, we have participated in the legal analysis of models that use stablecoins to fund digital wallets from abroad, enabling instant payments between Mexico and the U.S. without direct involvement from the traditional banking system. When properly structured, these solutions can comply with current tax and regulatory requirements.

Furthermore, stablecoins could help bridge gaps in financial inclusion, enabling unbanked individuals to access digital payment and savings methods more efficiently and at lower costs.

Lessons from Abroad

The European Union has taken a decisive step by including stablecoins within the MiCA Regulation (Markets in Crypto-Assets), establishing clear requirements for their issuance, backing, and supervision. In the United States, the regulatory debate is still ongoing, but there are already initiatives such as the STABLE Act (for more details, see this article I wrote), as well as actions by the SEC and the Treasury Department to define issuer responsibilities.

Mexico could take a gradual approach, starting by establishing clear legal definitions and a registry for custodians and issuers, along with transparency rules regarding reserves, audit mechanisms, and authorization or notification processes based on risk level.

Similarly, although Mexico’s regulatory sandbox has not been fully utilized, the creation of a specific sandbox for stablecoins could be considered. This would allow authorities to observe and evaluate different models under controlled conditions before issuing definitive regulations.

Conclusions and Recommendations

The use of stablecoins in Mexico is not a hypothetical future scenario but a reality today. Their impact on international payments, operational efficiency, and financial inclusion is clear. However, the current legal framework is not equipped to address their implications.

It is urgent for Mexican regulators to establish a clear framework for recognizing, supervising, and responsibly promoting the use of stablecoins. Doing so would not only provide legal certainty to market participants but would also position Mexico as a regional hub for financial innovation in Latin America.

Effective regulation must result from coordinated dialogue among Banxico, the CNBV, the SHCP, and the SAT, taking into account monetary, financial, tax, and risk prevention implications. It is essential to establish forums for public-private collaboration to discuss models, risks, and lessons learned from other countries.

At bgbg, we specialize in virtual assets, regulatory compliance, and the legal structuring of fintech models. We can assist companies in the sector with:

• Regulatory evaluation of products linked to stablecoins.
• Drafting terms and conditions, custody agreements, and privacy notices.
• Tax, data protection, and AML compliance.
• Engage with financial authorities.

Now is the time to define the legal future of stablecoins in Mexico, and at bgbg we are ready to play our part in that process.

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