MEXICO Law and Practice Contributed by: Lizette Neme, Andrea López-Malo, Shannon Reilly, Rodolfo Flores and Dunia Salum, Áurea Partners
Please see 2.8 Outsourcing of Regulated Functions and 9.2 Contractual Terms to Ensure Performance and Accuracy . 9.2 Contractual Terms to Ensure Performance and Accuracy As there is no specific regulation for regtech providers, the following distinction must be made. • If regtech providers seek to contract with licensed financial institutions, then they must comply with the third-party service providers rules and specific contractual clauses should be included regard - ing information security, business continuity, audit rights for regulators and liability for service failures. For further information, please see 2.8 Outsourcing of Regulated Functions . • If regtech providers seek to contract with non- regulated companies, there are no regulations governing the contractual terms, allowing flexibility to negotiate contractual obligations with providers, usually following industry customs. 10. Blockchain 10.1 Use of Blockchain in the Financial Services Industry Traditional financial institutions are actively exploring blockchain but are generally doing so with caution and strategic intent, rather than large-scale implementa - tion. Their approach focuses on efficiency, security, and compliance, and tends to prioritise permissioned (private) blockchain solutions over public blockchains. 10.2 Local Regulators’ Approach to Blockchain Blockchain technology is not regulated, but activi - ties related to blockchain, such as cryptocurrencies (virtual assets) are subject to regulations under legal frameworks, like the Fintech Law. However, com - panies implementing blockchain are still required to comply with general data protection laws, contractual and consumer protection regulations. Even though the Mexican authorities and regulators are monitoring technology developments such as
blockchain, no proposals or reforms are expected in the short term. 10.3 Classification of Blockchain Assets The assets are not regulated according to the technol - ogy in which they are based, but rather to the type or instrument they are and the person/entity who offers them. For example, tokens that give investment or profit rights may be treated as securities and regu - lated under the Securities Market Law. Cryptocurren - cies are classified as virtual assets under the Fintech Law or the AML Law, depending on who is offering them. Other assets, such as utility tokens and NFTs, are generally not treated as financial instruments and are mainly subject to consumer protection and general commercial laws. 10.4 Regulation of “Issuers” of Blockchain Assets In Mexico, there is no specific legal regime regulat - ing issuers of blockchain-based assets. There is no regulated “issuer” under this framework, except to the extent that the tokenised asset may fall under pre- existing financial laws (eg, as a security). Mexico has not adopted specific regulations for Ini - tial Coin Offerings (ICOs) or other initial offerings of crypto-assets; ICOs are not expressly prohibited, but they are not regulated either. The treatment changes if the asset granted in an ICO meets the criteria for a financial security under the Securities Market Law, if the tokens represent prop - erty rights, participation, debt, or profit expectations attributable to the efforts of others, they could be classified as securities. In that case, the initial offer - ing would be subject to securities regulation. 10.5 Regulation of Blockchain Asset Trading Platforms Please see 10.3 Classification of Blockchain Assets . 10.6 Staking Staking services relating to cryptocurrencies are not specifically regulated in Mexico. Financial institutions are prohibited from offering such services to custom - ers, and non-financial entities may trigger AML/CTF and consumer protection obligations.
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