FinTech Firms Closer To Regulation in Mexico As Senate Approves Billbr>
Mexico’s Senate has approved a financial technology bill that would regulate FinTech firms, including local bitcoin exchanges and crowdfunding.
The bill is expected to pass in the Chamber of Deputies, the lower house of the legislature, in a vote by December 15. If approved, the finer details would be hashed out in so-called secondary laws.
In the September draft of the bill, digital currencies did not have a standing as legal tender in Mexico. Firms wishing to deal in digital currencies required the prior authorization of the Bank of Mexico. The bill proposes stricter regulations for banks than Non-Banking Financial Companies (NBFC). The language of the bill acknowledged the need for regulation that allows authorities to mitigate risks and allow for growth in a competitive environment.
Felipe Vallejo, director of public and regulatory policy of cryptocurrenciey exchange Bitso, said that the bill brings Mexico in line with other countries. “For us it was a victory for the sector, because this is being done internationally,” he said.