Fiat-Back Stable Coins are not regulated in Mexico and fall outside of the FinTech Law. The current legal framework in Mexico gives them a differentiated treatment according to their particular use.
“[…] I. Represent units of information, univocally identifiable, even fractional, electronically registered, which do not represent the ownership or rights of an underlying asset or that represent such ownership or rights for a lower value than these; II. Have emission controls defined by means of specific Protocols to which third parties may subscribe; and third parties may subscribe, and III. Have protocols that prevent the replicas of the information units or fractions thereof from being available to third parties or their fractions are available to be transmitted more than once at the same time” .
A stable coin is a digital unit of value that is associated with the value of a fiat currency (such as the dollar, euro or peso). In this sense, the issuance of these collection rights against the issuer is not distinct from the reserved activity of solicitation of deposits/funds, which is restricted to regulated financial institutions in the country. If it is decided to use the technological infrastructure of a virtual asset to offer these issuance services, the corresponding authorization by law must be obtained, as well as authorization from the Mexican Central Bank to use these assets in the internal operations of the institutions.
Authored by: Federico De Noriega, Manuel Valdéz, and Dinorah Pensado
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