FinTech Law and Cryptocurrency in Mexico: What You Can and Can't Do in 2025

In Mexico, you can buy Bitcoin. You can send Ethereum to a friend. You can use a crypto app to pay for coffee in CDMX. But if you try to launch a crypto exchange or offer lending services backed by digital assets? You’re walking into a maze of rules, red tape, and regulatory traps. The FinTech Law - passed in 2018 - was meant to bring order to chaos. Instead, it created a system where innovation is allowed, but only if you’re big enough to afford the compliance team.

What the FinTech Law Actually Covers

Mexico’s Law to Regulate Financial Technology Institutions (Ley Fintech) didn’t just update rules - it rewrote the playbook. It was the first law in Latin America to define fintech companies as formal financial institutions. Before this, crypto startups operated in the shadows. Now, they’re forced to register with the National Banking and Securities Commission (CNBV) and follow strict rules set by the Bank of Mexico (Banxico).

The law divides fintechs into three buckets:

• Crowdfunding platforms
• Electronic payment fund operators (like digital wallets)
• Companies in the regulatory sandbox (testing new models under supervision)

If you’re running a crypto exchange or a DeFi lending platform, you’re not officially recognized under this law. That’s not an accident. The government didn’t ban crypto - it just refused to give it a legal home. So companies that want to operate legally must restructure. They become payment processors, not crypto platforms. They handle pesos and dollars, not Bitcoin or Solana.

Cryptocurrency: Legal to Own, Illegal to Trade (For Banks)

Here’s the confusing part: individuals can own, trade, and use cryptocurrency without breaking any law. There’s no ban on buying Bitcoin on Binance or holding ETH in a MetaMask wallet. But if you’re a bank, credit union, or licensed fintech firm? You can’t touch it. Not directly.

The Bank of Mexico and the Financial Intelligence Unit (FIU) treat virtual assets as high-risk. That means any company handling crypto must follow strict anti-money laundering (AML) rules:

• Verify every customer’s identity with official ID
• Track where money comes from and where it goes
• Report any transaction over $1,500 USD that looks odd
• Keep records for five years - even if the customer closes their account

This isn’t optional. If you’re a fintech and you process crypto payments without this system, you risk losing your license - or worse, criminal charges.

Why Startups Are Struggling

The law sounds good on paper: protect users, stop crime, bring transparency. But for small players, it’s a death sentence.

Every licensed fintech must hire two full-time specialists:

• A Compliance Officer (knows all the AML rules)
• A Chief Information Security Officer (handles cybersecurity audits, encryption, cloud backups)

These aren’t entry-level jobs. In Mexico City, a qualified compliance officer earns at least $4,000 USD a month. Add in software, audits, legal fees, and cloud infrastructure - and you’re spending $100,000+ just to open your doors.

That’s why 80% of Mexico’s 1,000+ fintechs are either big foreign companies like Nu or Mercado Pago, or well-funded local startups with VC backing. A solo founder with a prototype? They can’t afford to play.

The Cross-Border Problem

Mexico’s neighbors are moving faster. Brazil launched its open finance system in 2021. Colombia’s fintech sandbox lets startups test crypto-based lending. Argentina allows crypto-to-fiat gateways with minimal oversight.

Mexico? You can’t send a payment in Bitcoin to a vendor in Chile and have it clear through a Mexican bank. Even if both parties are using regulated platforms, the system doesn’t talk to itself. The law doesn’t recognize cross-border crypto transactions as legitimate financial flows. So Mexican fintechs are stuck.

Companies like Stori and Kueski have expanded into Latin America - but they do it by avoiding crypto entirely. They lend in pesos, collect in pesos. No blockchain. No wallets. Just digital credit scoring and bank transfers.

What’s Changing in 2025?

There’s pressure. The Securities Market Law was updated in early 2025 to make it easier for fintechs to raise capital through public offerings. That’s a win - but it doesn’t fix the crypto problem.

Experts are calling for “FinTech Law 2.0.” They want:

• Clear definitions of what counts as a virtual asset service provider
• A licensing path for crypto exchanges and custodians
• Rules for stablecoins tied to the peso or dollar
• Harmonized rules with other Latin American countries

The CNBV has hinted at changes. In a September 2025 speech, its president said they’re studying “how to regulate digital assets without stifling innovation.” But no draft law has been published.

Meanwhile, the underground market grows. Peer-to-peer crypto trading on Telegram and WhatsApp is booming. People use P2P platforms like Paxful and LocalBitcoins to buy Bitcoin with bank transfers - bypassing banks entirely. It’s risky, but it works.

What Should You Do If You’re in Mexico?

If you’re a regular user: keep using crypto. It’s legal. Just don’t expect banks to help you cash out. Use P2P or licensed exchanges like Bitso or Binance Mexico.

If you’re a startup founder:

1. Don’t build a crypto exchange yet. Wait for 2026 at the earliest.
2. Build a payment processor that works in pesos. Use crypto as a backend settlement tool - not the front-end product.
3. Partner with an already-licensed fintech. Many small firms operate under the umbrella of bigger players.
4. Invest in compliance early. Hire a lawyer who’s worked with CNBV before - not a generalist.

If you’re an investor:

• Look at fintechs that solve real problems - SME lending, remittances, digital banking.
• Avoid companies that claim to be “crypto-native.” They’re either hiding from regulators or about to get shut down.
• Watch for companies that get licensed under the new Securities Market Law. Those are the ones with a future.

The Big Picture

Mexico didn’t ban crypto. It just made it too expensive to build on. The law wasn’t designed to stop innovation - it was designed to control it. And right now, only the big players can afford to play.

The real question isn’t whether crypto is legal in Mexico. It’s whether the country wants fintech to be a global leader - or just a safe, slow, tightly wound system that protects banks more than people.

2025 could be the year that changes. Or it could be the year Mexico falls further behind.