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<p>The post <a href="https://coinpedia.org/cryptocurrency-regulation/crypto-regulations-in-mexico-2024/">Crypto Regulations in Mexico 2024</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>Mexico, nested in southern North America, is the world’s 13th-largest country. It boasts a population nearing 130 million, which makes it the 10th most populous county. As a developing nation with the 15th largest economy globally by nominal GDP and 11th largest by PPP, Mexico is emerging on the world stage as a new global economic power.&nbsp;</p> 
<p>But, regarding cryptocurrency, Mexico has adopted a cautious stance. Although the government and CNBV, an autonomous agency of Mexico’s Secretariat of Finance and Public Credit that supervises and regulates the financial system to ensure stability and protect public interest, introduced fintech laws in 2018 to establish a regulatory framework, it has a conservative approach to integrating virtual assets into the existing financial system.&nbsp;&nbsp;&nbsp;</p> 
<h2 class="wp-block-heading" id="h-mexican-crypto-regulation-a-general-overview-nbsp">Mexican Crypto Regulation: A General Overview&nbsp;</h2> 
<p>Mexico regulates FinTech, like cryptocurrencies, through the Fintech law. Though this law sets out the main rules, specific regulations come from various authorities. The National Banking and Securities Commission (CNBV), the Bank of Mexico, and the Ministry of Finance and Public Credit (SHCP) are the prime authorities implementing the country’s financial policies, including those related to the FinTech sector.&nbsp;</p> 
<p>Virtual assets are defined as electronic values used as payment and transferred electronically. There is no outright ban on virtual asset transactions, but financial institutions like banks and Financial Technology Institutions (FTIs) need Banxico’s approval.&nbsp;</p> 
<p>Non-financial companies can offer exchange and custody services for visual assets if they don’t engage in fundraising or hold clients’ fiat currencies. Borrowing and yield transactions through DeFi protocols are not recognized under Mexican laws.&nbsp;&nbsp;&nbsp;</p> 
<p>The Ministry of Finance and Banxio have warned about the risk of using virtual assets.&nbsp;</p> 
<h2 class="wp-block-heading" id="h-mexican-crypto-regulation-2024-what-s-new">Mexican Crypto Regulation 2024: What’s New?</h2> 
<p><strong>February 15, 2024:</strong> Bitso is leading the charge in updating Mexico’s crypto regulations. It proposes changes to fiscal laws, intellectual property, and the Fintech law.</p> 
<p><strong>May 2, 2024: </strong>Worldcoin’s expansion into Latin America sparks concerns among Mexican lawmakers, including Morena’s Maria Eugenia Herandez.&nbsp;</p> 
<p><strong>June 3, 2024: </strong>Claudia Sheinbaum of Morena wins the presidency. As the ruling Morena Party retains power, the chance for a sharp deviation from the country’s current attitude towards crypto regulation is limited.&nbsp;&nbsp;</p> 
<h2 class="wp-block-heading" id="h-political-change-in-mexico-crypto-policy-update-ahead-nbsp">Political Change in Mexico: Crypto Policy Update Ahead?&nbsp;</h2> 
<p>With Claudia Sheinbaum set to become Mexico’s president on October 1, 2024, questions arise about potential shifts in the country’s crypto policy. Sheinbaum, a member of the ruling Morena party, aligns closely with her predecessor, Andres Manuel Lopez Obrador. The Morena party has not introduced comprehensive crypto legislation but has imposed a 20% tax on crypto gains and requires crypto exchanges to meet global anti-money laundering standards. Despite these measures, the party has maintained a cautious stance on crypto.&nbsp;&nbsp;&nbsp;</p> 
<h2 class="wp-block-heading" id="h-mexican-crypto-taxation-nbsp"><strong>Mexican Crypto Taxation&nbsp;</strong></h2> 
<p>Mexico doesn’t have specific tax regulations for transactions involving virtual assets. This indicates that individuals and companies must adhere to general tax laws. The two important ones are the income tax law and the value-added tax law. Income tax, up to 35% for individuals and 30% for companies, is applied to taxable income. VAT, at 16%, is charged on goods and services.&nbsp;</p> 
<p>Profits from selling virtual assets are treated as goods sales. Sellers must withhold and make provisional tax payments to the Tax Administration Service (TAS) if transactions exceed $13,324. A 20% provisional tax on the sale amount is required. If the buyer is a Mexican resident, the buyer pays this tax; otherwise, the seller is responsible. Digital platforms also have specific tax obligations, including income tax withholdings directly paid to TAS.&nbsp;&nbsp;</p> 
<h2 class="wp-block-heading" id="h-crypto-mining-in-mexico">Crypto Mining in Mexico</h2> 
<p>Mexico has no specific regulations governing the cryptocurrency mining sector. Mining involves significant energy consumption, and mining operations may be classified as “Qualified Users” based on their energy consumption. The Electricity Industry Law, implemented by the Ministry of Energy, requires users to comply with the consumption level guidelines set by the law.&nbsp;&nbsp;&nbsp;</p> 
<h2 class="wp-block-heading" id="h-timeline-of-crypto-laws-in-mexico">Timeline of Crypto laws in Mexico</h2> 
<ul> 
 <li><strong>March 2018</strong></li> 
</ul> 
<p>Mexico introduces the Fintech Law, establishes a regulatory framework for virtual assets, and updates the Anti-Money Laundering Law.</p> 
<ul> 
 <li><strong>March 2019</strong></li> 
</ul> 
<p>The Bank of Mexico releases Circular 4/2019. The circular prohibits banks and FTIs from directly dealing with virtual assets.</p> 
<ul> 
 <li><strong>August 2021</strong></li> 
</ul> 
<p>The Financial Intelligence Unit mandates that non-financial entities engaged in virtual asset transactions within Mexico comply with the Anti-Money Laundering Legal Framework.&nbsp;</p> 
<ul> 
 <li><strong>April 2022</strong></li> 
</ul> 
<p>Banxico Governor Victoria Rodriguez Ceja announces the plan to launch a digital currency by 2025.&nbsp;</p> 
<ul> 
 <li><strong>June 7, 2023</strong></li> 
</ul> 
<p>Mexico publishes the National Procedure Code, defining ‘Blockchain’ and ‘Metaverse’ as legal contexts. This action recognizes the evidential value of blockchain-stored data and introduces the idea of a Metaverse for judicial processes.</p> 
<h3 class="wp-block-heading" id="h-nbsp-endnote-nbsp"><strong>&nbsp;</strong><strong>Endnote&nbsp;</strong></h3> 
<p>In 2018, Mexico’s government set the stage for cryptos with fintech laws, but the country remains cautious about fully embarrassing virtual assets. With Claudia Sheinbaum of the Morena Party now leading as the president-elect, not many expect drastic shifts in crypto regulations immediately. The focus will likely be balancing innovation with caution in the evolving digital asset landscape.&nbsp;</p> 
<p><strong>Also Discover How the <a href="https://coinpedia.org/cryptocurrency-regulation/" target="_blank" rel="noreferrer noopener">laws &amp;&nbsp;regulations</a>&nbsp;affecting blockchain technology and&nbsp;cryptocurrencies, like Bitcoin, can impact its adoption.</strong></p>

Crypto Regulations in Mexico 2024

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