MEXICO Law and Practice Contributed by: Christian Lippert, Gabriela Pellón, Fabiola Jiménez and Cecilia Díaz de Rivera, Galicia Abogados
under tax and anti-money laundering regulations when formalising transfers of real estate or other assets. Mexico is a signatory to the OECD Common Report- ing Standard (CRS) and has entered into a FATCA Intergovernmental Agreement with the United States. Mexican financial institutions are required to report information on accounts held by foreign tax residents to the Mexican tax authority (SAT), which in turn exchanges this information with foreign tax authori- ties. This has significant implications for clients who hold assets abroad or who have family members with tax obligations in other jurisdictions. In Mexico, digital assets are not governed by a single statute. The applicable legal framework depends on the nature of the digital asset and the activity involved. From a general perspective, digital assets may be treated as intangible movable property under the Federal Civil Code and the corresponding state civil codes, meaning that their ownership, control and dis- position are generally subject to the rules applicable to intangible assets. The Federal Law on Copyright ( Ley Federal del Derecho de Autor ) also applies, depending on the specific features and nature of the asset. 7. Succession of Digital Assets 7.1 Legal Framework Social media and email accounts are not specifically regulated as a distinct category of assets under Mexi- can law. Their control and use are generally governed by the contractual terms agreed between the user and the service provider, and by the applicable laws on data protection, intellectual property and consumer protection, particularly the Federal Law on Protection of Personal Data Held by Private Parties, the Federal Law for the Protection of Industrial Property (insofar as the digital asset involves a registered trade mark or trade name) and the Federal Consumer Protection Law. As a result, the user typically holds a contrac- tual right to access and use the service, rather than ownership over the account itself. Under the applica- ble terms and conditions of several digital platforms, the account (as distinct from its content) cannot be transferred to third parties; at most, some platforms
allow a designated third party to exercise limited management powers over a memorialised account. At the local level, certain regulatory initiatives have also emerged; for example, the State of Querétaro has adopted restrictions regarding minors’ access to social media platforms, reflecting a broader trend toward increased regulation of digital platforms. With respect to cryptocurrencies and other virtual assets, the applicable framework depends on the nature of the actor involved. When operated by regu- lated financial entities, their use is governed by the Law to Regulate Financial Technology Institutions (Fintech Law) and its secondary provisions (including regulations issued by Banco de México pursuant to its authority to determine which virtual assets regulated entities may operate), under which such entities may only operate with expressly authorised virtual assets and subject to specific operational, compliance and risk management requirements. By contrast, when held or transacted by private individuals or non-reg- ulated entities, there is currently no comprehensive regulatory regime governing the use of virtual assets, which may generally be held or transacted freely. 7.2 Planning Considerations Digital assets that are not excluded from commerce and do not constitute purely personal (intuitu perso- nae) rights may form part of the deceased’s estate and may be transferred through the ordinary succession process, whether by testamentary or intestate suc- cession under the applicable civil codes. Mexico City’s Civil Code expressly recognises the pos- sibility of transmitting digital assets or rights through testamentary dispositions. Article 1392 Bis (intro- duced as part of a broader reform) allows a testator to include various digital assets within a legacy, including email accounts, internet domains, electronic files and access credentials to digital services or financial tech- nology applications. The provision also allows the tes- tator to appoint a special executor ( albacea especial ) responsible for managing such assets and implement- ing the instructions contained in the will, without this implying ownership over the underlying rights, unless expressly authorised. This distinction is particularly relevant in relation to intellectual property, as digital content such as photographs, videos or written works
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