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 phenomena 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 operations. However, this growth has occurred in 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, generally a fiat currency. This feature has positioned them as attractive instruments for transferring value efficiently, frictionlessly, and without the need for traditional banking intermediaries.

In Mexico, their use has intensified among remittance platforms, freelancers receiving payments from abroad, small businesses importing digital services, and users seeking a hedge against exchange rate volatility. Nonetheless, current regulation does 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 operations with virtual assets, including those that seek to maintain a stable value (i.e., stablecoins). This communiqué reinforces 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 on the requirements that stablecoin issuers or custodians must meet to operate legally in Mexico, nor on 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, requiring 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.

Real vs. Perceived Risks

The lack of regulation generates 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 within the framework of AML/CTF compliance, best practices, efficient corporate structuring, and associated tax analysis.

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

International Payments: An Opportunity for Mexico

With over USD $60 billion in remittances sent to the country annually and a constantly expanding digital ecosystem, Mexico is in a privileged position 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 intervention from the traditional banking system. These solutions, when well structured, can comply with current tax and regulatory obligations.

Moreover, stablecoins could help bridge financial inclusion gaps, allowing unbanked individuals to access digital means of payment and savings more efficiently and at lower costs.

Lessons from Abroad

The European Union has taken a firm 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 remains ongoing, but there are already initiatives such as the STABLE Act (for a deeper dive, see this article I wrote), as well as actions by the SEC and the Treasury Department to define issuer responsibilities.

Mexico could adopt a gradual approach, first establishing clear legal definitions and a registry for custodians and issuers, accompanied by transparency rules on reserves, audit mechanisms, and authorization or notification processes based on risk level.

Likewise, although the regulatory sandbox in Mexico 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 a definitive regulation.

Conclusions and Proposal

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

It is urgent for Mexican regulators to establish a clear pathway to recognize, supervise, and responsibly leverage 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.

An effective regulation must emerge from coordinated dialogue between Banxico, CNBV, SHCP, and SAT, considering monetary, financial, tax, and risk prevention implications. It is essential to open public-private collaboration spaces to discuss models, risks, and comparative lessons.

At bgbg, we have a specialized practice in virtual assets, regulatory compliance, and legal structuring of fintech models. We can support sector companies in:

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

The time to define the legal future of stablecoins in Mexico is now, and at bgbg we are ready to contribute to that path.

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