FinTech Law and Cryptocurrency in Mexico: What You Can and Can't Do in 2025
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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)
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
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)
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
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:- Don’t build a crypto exchange yet. Wait for 2026 at the earliest.
- Build a payment processor that works in pesos. Use crypto as a backend settlement tool - not the front-end product.
- Partner with an already-licensed fintech. Many small firms operate under the umbrella of bigger players.
- Invest in compliance early. Hire a lawyer who’s worked with CNBV before - not a generalist.
- 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.Is it legal to buy and hold Bitcoin in Mexico?
Yes. Individuals can legally buy, hold, sell, and use Bitcoin and other cryptocurrencies in Mexico. There is no law prohibiting personal ownership or peer-to-peer transactions. You can use crypto to pay for goods or services if the merchant accepts it. However, banks and licensed financial institutions cannot offer crypto services directly.
Can I start a crypto exchange in Mexico right now?
Not legally under the current FinTech Law. There is no official licensing category for cryptocurrency exchanges. Any company offering crypto trading as a core service operates in a legal gray area. While some platforms like Bitso operate with CNBV oversight as payment fund providers, they do not offer direct crypto-to-crypto trading under the law. Launching a true crypto exchange without regulatory approval risks fines, asset freezes, or criminal charges.
What happens if a fintech company violates crypto regulations?
Violations can lead to severe consequences. The CNBV can suspend or revoke a company’s license. The Financial Intelligence Unit (FIU) can initiate criminal investigations for money laundering. Fines can reach millions of pesos. Executives may face personal liability, including jail time, if they knowingly bypass KYC or fail to report suspicious activity. Several small crypto startups were shut down between 2023 and 2024 for operating without proper AML controls.
Are stablecoins regulated in Mexico?
Stablecoins are not explicitly regulated yet. They fall under the same gray area as other cryptocurrencies. If a stablecoin is used as a payment method by a licensed fintech, it must comply with electronic payment fund rules - including KYC, transaction limits, and record-keeping. But there are no specific rules for how stablecoins are issued, backed, or audited. The Bank of Mexico has not approved any peso- or dollar-backed stablecoin for use in the financial system.
Can I use crypto to send money to family in Mexico from the U.S.?
Yes - but not through banks or licensed remittance services. You can send crypto directly to a wallet in Mexico, and the recipient can cash out via P2P platforms like Bitso or LocalBitcoins. However, if you use a traditional remittance provider (like Western Union or Wise), they cannot convert or send crypto. They only handle fiat currency. The recipient may also face tax reporting requirements if they convert large amounts regularly.
Do I have to pay taxes on crypto gains in Mexico?
Yes. The Mexican Tax Administration Service (SAT) treats cryptocurrency as an asset, not currency. Any profit from selling or trading crypto is subject to capital gains tax. If you hold crypto for less than a year and sell at a profit, you pay up to 35% in income tax. If held longer, it’s taxed at a lower rate. You must report all crypto transactions in your annual tax return. Failure to report can result in fines or audits.
Mike Stadelmayer
November 19, 2025 AT 20:58Man, I’ve been using Bitso for years and it’s wild how the law lets you hold crypto but makes it impossible to build anything real around it. I get the AML stuff, but why make it so expensive? It’s like saying ‘you can own a guitar, but you need a symphony orchestra to play it.’
Norm Waldon
November 20, 2025 AT 09:57Of course they’re stifling innovation-this is Mexico, not Silicon Valley! The CNBV is just a bunch of bureaucrats in suits terrified of losing control. They don’t want crypto-they want control! And don’t get me started on how they’re letting foreign giants like Mercado Pago walk all over local startups! This isn’t regulation-it’s economic colonialism!
neil stevenson
November 22, 2025 AT 05:25Just wanna say, I sent some BTC to my cousin in Guadalajara last week via P2P-she cashed out on LocalBitcoins in 10 mins. No bank involved. No drama. Just chill vibes 😎
Samantha bambi
November 23, 2025 AT 09:40I love how the article points out that individuals aren’t banned-it’s the institutions that are locked out. That’s such a subtle but critical distinction. It’s not about fear of crypto… it’s about fear of losing the banking monopoly. And honestly? That’s kinda sad.
Anthony Demarco
November 24, 2025 AT 15:25Lynn S
November 25, 2025 AT 19:26It is utterly irresponsible to suggest that individuals may freely trade cryptocurrency without proper taxation oversight. The SAT has made its position abundantly clear: unreported capital gains are tax evasion, period. Those who ignore this are not ‘innovators’-they are delinquents. And as for startups? They should not be ‘waiting’ for regulation-they should be complying with what already exists. The law is not ambiguous; it is merely ignored.
Jack Richter
November 27, 2025 AT 09:02Yeah, so… crypto’s legal to own. Cool. Guess I’ll just keep ignoring it.
sky 168
November 27, 2025 AT 15:39P2P works. Don’t need banks. Simple.
Khalil Nooh
November 29, 2025 AT 09:29Let me tell you something-this isn’t just about Mexico. This is about the future of finance. They’re trying to build a castle out of sand. The world is moving toward open, permissionless systems. And if Mexico wants to be relevant in 2030? They need to stop treating crypto like a public nuisance and start treating it like infrastructure. I’ve seen startups in Lagos and Jakarta do more with less. Mexico? They’re stuck in 2012.
jack leon
November 30, 2025 AT 13:50OH MY GOD. THEY’RE KILLING INNOVATION WITH BUREAUCRACY! IT’S LIKE BUILDING A FERRARI… AND THEN FORCING IT TO DRIVE AT 15 MPH BECAUSE ‘SOMEONE MIGHT GET HURT’! The CNBV is playing checkers while the world is playing 4D chess. And don’t even get me started on how they’re letting foreign giants eat the market alive while local founders starve! This isn’t regulation-it’s a funeral for Mexican tech!
Chris G
December 1, 2025 AT 15:48Phil Taylor
December 3, 2025 AT 08:41Let’s be honest-Mexico’s entire financial system is a fragile, state-subsidized relic. They don’t ‘regulate’ crypto because they fear it. They regulate it because they fear irrelevance. The fact that Brazil and Colombia are moving ahead while Mexico hides behind compliance officers speaks volumes. This isn’t about security-it’s about national cowardice.
diljit singh
December 4, 2025 AT 21:11Abhishek Anand
December 6, 2025 AT 10:16The irony is that the FinTech Law was conceived under the illusion that regulation could be a bridge-not a barrier. But true innovation doesn’t wait for permission. It emerges in the cracks. The real question isn’t whether Mexico will adapt-it’s whether its people will outgrow the system before the system collapses under its own weight. We are witnessing the death rattle of centralized finance, and Mexico is choosing to bury its head in the sand while the rest of the world builds on-chain.