With up to 123 million potential end users and a top legal framework, Mexico continues to position itself as a leader in the FinTech sector!

As we mentioned earlier, on March 9, 2018, the Decree that issued the FinTech Law of Mexico was published. Our FinTech Law was the first law in the world to gather all the FinTech legal framework in the same regulatory body.

The Fintech Law sets forth the legal framework for:

• CrowdFunding
• Electronic Payment Funds or Wallets
• APIs / Open Banking
• Virtual Assets or Cryptocurrencies / Tokens
• Regulatory SandBox

Mexico has the secondary FinTech regulation readyAfter months of lobbying and negotiation with the Financial Authorities, carried out by Legal Paradox and other members of the FinTech community, the first projects of the provisions drafted by the Tax Authority and the National Banking and Securities Commission were published in the Federal Commission for Regulatory Improvement, of which we highlight the following:

• Minimum Capital. The minimum capital to operate a regulated FinTech will be around US$167,000, which can reach up to US$234,000, depending on the authorized activities.
• Use of Cash. FinTech may request authorization to receive cash up to US$3,334 per month per customer and deliver cash to them up to US$500 per customer per day.
• Transfers abroad. FinTech must request authorization to send traditional money or FIAT abroad.

It should be noted that the Projects are not final until they are published in the Official Gazette of the Federation. The above is expected to happen next September 9, 2018.

On the other hand, here are some advantages of Mexico over other countries:

• In 2017 we had 123.5 million inhabitants, of which 65.2 million are under 29 years of age (Source INEGI, 2017).
• The value of the FinTech market in Mexico is US$66,796m in 2018 (Source Statista, June 2018).
• We are the ecosystem with the largest number of FinTech companies in Latin America (Source Finnovista, 2017).
• We are in the top 5 in the world in FinTech regulation (Source Bancomer, 2018).

In the previous context, from now on we are working so that our clients are the first to obtain the permission of the financial authority, therefore helping to positioning Mexico as leader of the FinTech industry.

Remember that the activities of Financial CrowdFunding and Wallets, as well as being considered as a SandBox project, are reserved for those entities that obtain authorization to operate as such, as well as that in case of not obtaining such authorization within the legal deadlines, being obliged to do so, fines up to around US$666,667 and up to 15 years in prison may arise.

In regard with the imminent regulation, it would be pending the issuance of the provisions, under the responsibility of the Bank of Mexico, in the matter of the Virtual Assets that may be operated by the Financial Institutions and FinTech, as well as the regulation in charge of CONDUSEF in regard with consumer protection of financial services.

Legal Paradox, S.C. is the only legal firm in Mexico specialized in FinTech, BlockChain and CrowdFunding.

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