MEXICO Law and Practice Contributed by: Ricardo García Giorgana, Carlos Chavez Alanis and Xavier Careaga Franco, Galicia Abogados
tección y Defensa de los Usuarios de Servicios Financieros (CONDUSEF; the National Commis - sion for the Protection and Defense of Users of Financial Services) provisions, requiring disclo - sures about risks and compliance with anti-mon - ey laundering rules. The Mexican Central Bank has not approved any public cryptocurrency from fintech companies. Innovative model sandboxes allow business models outside existing financial regulations to operate with temporary, two-year authorisation. These sandboxes function under controlled con - ditions, with geographical and client limitations. The framework includes regulated and unregu - lated sandboxes, but no sandbox has been authorised to date despite collaborative efforts. The Fintech Act mandates application program - ming interfaces (APIs) for standardised data sharing between financial entities, enabling open financial data, aggregated information and trans - actional data exchanges with user consent. APIs facilitate open banking by promoting innovation and efficiency, but the lack of detailed regula - tions has required industry adaptation. The Fintech Act aims to create an integrated, efficient financial services ecosystem, foster - ing innovation while ensuring competitiveness, transparency and security in Mexico’s digital finance sector. Transportation and Food Delivery Apps The December 2024 amendment to the Employ - ment Act, introduced under President Claudia Sheinbaum, aims to recognise drivers and deliv - ery workers for digital apps as formal employ - ees. These workers would gain rights akin to traditional employees, such as bonuses, social security, flexible work schedules, algorithmic transparency, risk insurance and other benefits.
However, the amendment misunderstands the gig economy’s structure, leading to significant criticism. With secondary regulations still pend - ing, constitutionality challenges are anticipated. Temporary Hosting Services Apps In response to concerns about gentrification and competition with traditional hospitality, Mexico City Congress recently amended the Tourism Act to regulate temporary hosting service plat - forms. The statute imposes strict requirements, including mandatory government registries for platforms and hosts, regular data disclosure and caps on listings, such as limiting hosts to three properties or allowing listings for only 50% of the year. Platforms are also held jointly liable for hosts’ obligations. Critics argue that the amend - ment misclassifies digital hosting services as tourism services and implements anti-compet - itive measures. Legal challenges are already underway, though other states are considering adopting similar regulations. Digital Advertising Digital advertising remains largely unregulated in Mexico. A 2021 law designed to ensure trans - parency and prevent unfair practices in advertis - ing services was struck down by the Supreme Court in 2023 for being unconstitutional. Sepa - rately, the Consumer Protection Agency ( Pro- curaduría Federal del Consumidor ; PROFECO) issued guidelines for influencer and digital con - tent marketing, attempting to establish basic rules and recommendations for these activities. On the other hand, in matters related to sani - tary advertising, the Regulations of the General Health Act on Advertising set forth the rules in connection with the advertising of health-related goods, products and services. In recent years, Mexico’s competition regulator, the Federal Economic Competition Commission
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