The Future of Crypto in Mexico: Regulation, Compliance, and Opportunity

FINTECH / by Javier Pérez Moreno

Mexico is quickly establishing itself as one of Latin America’s most dynamic markets for digital assets. With a growing fintech ecosystem, high smartphone penetration, and strong remittance flows, the country presents a compelling opportunity for crypto adoption. But success here requires more than technical innovation or a sleek user interface, it requires strict compliance with Mexico’s regulatory and financial legal framework.

Mexico has taken a progressive but cautious stance toward digital assets. Rather than ban or ignore them, the government has built a layered framework through its Fintech Law, anti-money laundering regime, and central bank circulars. These laws create both opportunity and responsibility for crypto companies that want to operate in the country.

As a partner at bgbg, we’ve helped clients ranging from crypto exchanges to fintech platforms navigate these regulatory waters. If you’re looking to operate legally and sustainably in Mexico, this article outlines what you need to know.

Mexico’s Legal Framework for Crypto

Mexico’s regulation of digital assets is centered on the Fintech Law, enacted in 2018. This law formally defines “virtual assets” and grants the government authority to regulate their use within financial services. It allows both licensed financial technology institutions, such as electronic payment institutions and crowdfunding platforms, and traditional banks to operate with virtual assets, but only under strict conditions and subject to prior authorization from the Mexican central bank (Banxico).

The law delegates oversight to multiple bodies: the National Banking and Securities Commission (CNBV) for licensing, Banxico for regulating the use of virtual assets, and the Ministry of Finance for tax and anti-money laundering oversight.

Virtual assets are considered digital representations of value used as a means of payment, but they are not legal tender. They are not treated as currency, but as intangible assets subject to specific legal treatment depending on the context in which they are used.

Banxico’s Rules: What Financial Institutions Can and Cannot Do

While Fintech Law opened the door to virtual asset operations, Banxico’s Rule 4/2019 significantly restricted how financial institutions can use them.

Banks and fintech institutions may not offer crypto services directly to clients, such as custody, exchange, or transmission of virtual assets. Banxico allows only limited internal operations, such as using virtual assets within the institution for back-end services or cross-institutional settlements, but even these uses require prior authorization.

This means that a licensed electronic payment platform cannot allow users to buy or send crypto to one another unless Banxico has specifically approved that use. As of today, Banxico has not publicly granted any authorizations under Rule 4/2019, making such approvals effectively non-existent in practice. As a result, most crypto innovation in Mexico happens outside the regulated financial institution model.

Operating Outside the Fintech Law: A Legal Path for Crypto Startups

If your company is not seeking to operate as a regulated financial institution, you may still conduct crypto-related business, as long as your activities do not fall within the scope of regulated financial services (such as taking fiat deposits or issuing payment instruments).

Many successful crypto exchanges providers in Mexico operate under this model. However, they must comply with a different set of rules, most notably, anti-money laundering regulations and tax compliance.

AML Obligations for Crypto Businesses

Mexico’s anti-money laundering law classifies businesses that habitually or professionally offers virtual asset exchange, custody, or transfer services as vulnerable activities.

This means that companies engaging in crypto services must, among others:

• Implement Know Your Customer (KYC) procedures
• Register with the government’s AML system
• Report transactions exceeding a set monetary threshold
• Designate a compliance officer and keep detailed records

Failure to comply can lead to fines, account freezes, and even criminal sanctions. Even foreign crypto companies that offer services to Mexican users are considered subject to these rules.

Data Privacy and Cybersecurity Compliance

In addition to financial regulation, companies operating in Mexico must comply with data protection laws. Mexico’s data privacy regime requires that:

• Users are clearly informed about how their data will be collected, used, and stored
• Consent is obtained before collecting personal data
• Data is stored securely and protected from unauthorized access
• Users can access, correct, or delete their personal information

Crypto platforms that collect personal data during account creation, identity verification, or transaction history must treat this data with the same care as a bank would.

Tax Considerations for Crypto Operations

Mexican tax law treats crypto assets as intangible property. Profits from the sale or exchange of crypto are considered taxable income and must be reported as part of annual tax filings by individuals or corporations.

In many cases, crypto transactions are also subject to Value Added Tax (VAT). Selling crypto for pesos, charging service fees on trades, or using crypto to purchase goods or services can all trigger VAT obligations.

Mexico does not yet have a special tax regime for crypto, so companies must follow general tax rules and keep detailed records of all transactions, valuations, and income generated.

Navigating Entry into the Mexican Market

Entering the Mexican crypto market involves strategic decisions around licensing, corporate structure, compliance obligations, and operational boundaries. Each choice carries regulatory and tax implications. There is no one-size-fits-all model, success depends on precise legal design tailored to your business model and risk appetite.

This is where expert legal guidance makes all the difference.

Conclusion: Build Legally. Grow Sustainably.

Mexico offers a structured, if cautious, regulatory environment for crypto. While traditional financial institutions face restrictions, independent companies that take compliance seriously can thrive here.

Success in the Mexican market means:

• Understanding the scope and limitations of Mexican regulation on virtual assets
• Respecting Banxico’s restrictions on crypto use in licensed institutions
• Complying with AML and data protection regulations
• Managing your tax obligations carefully

At bgbg, we’ve helped some of the world’s most ambitious fintech and crypto companies structure their entry into Mexico. Whether you’re exploring exchange services, digital wallets, cross-border solutions, or blockchain-based finance, we can help you navigate the legal framework and launch with confidence.

Contact me to get started on your crypto journey in Mexico, legally, securely, and strategically.

Javier Pérez Moreno

Banking, Finance and Compliance Partner

jperez@bgbg.mx 

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