MEXICO Law and Practice Contributed by: Ricardo García Giorgana, Carlos Chavez Alanis and Xavier Careaga Franco, Galicia Abogados
If arbitration is declined, the parties’ legal rights remain unaffected. For TMT companies, minimising disputes involves implementing transparent and acces - sible complaint mechanisms, such as written, electronic and telephone channels, in order to prevent these claims from reaching the authori - ties. These methods should be clearly explained in their terms and conditions (T&C), a frequent - ly asked questions (FAQ) section or specific guidelines provided by the company. Providing structured resolution frameworks, including con - ciliation and arbitration, fosters trust and fair - ness. Conflict often arises from poorly designed complaint systems, such as AI-based chats lacking escalation options or failing to address non-standard issues promptly. Proper man - agement of reimbursements and complaints, especially regarding service quality, is essential. Companies should focus on vulnerable groups, like minors, ensuring their rights are protected. Independent arbitration options and adherence to principles of legality and equality bolster a company’s credibility while demonstrating its commitment to consumer protection. 1.5 The Role of Blockchain in the Digital Economy Blockchain is not directly regulated in Mexico but is addressed through the Fintech Law, which governs virtual assets, digital payments, crowd - funding and sandboxes. The law classifies vir - tual assets (commonly called cryptocurrencies) as non-legal tender and strictly limits their use by fintech institutions. These assets are confined to internal purposes, must be segregated from cli - ent assets and are subject to stringent oversight. Trading and custody of virtual assets are not activities permitted for fintech institutions in Mexico. For example, Bitso’s IFPE entity, Nvio,
manages wallet services in national currency only, avoiding virtual asset handling. Compa - nies like Bitso and Binance operate fiat-to-virtual asset conversions in jurisdictions like Gibraltar, reflecting the cautious stance of Mexican regula - tors on domestic virtual asset activities. The Fintech Law narrowly defines “Fintech” according to three regulated categories, each subject to strict compliance standards akin to those for banks and financial institutions. Requirements include rigorous know your cus - tomer (KYC) processes for shareholders and administrators, minimum capital thresholds and high technological infrastructure standards. These regulations pose significant challenges for fintech companies looking to operate in Mexico. 2. Cloud and Edge Computing 2.1 Highly Regulated Industries and Data Protection In Mexico, cloud and edge computing lack specific regulation and are governed indirectly under existing laws, particularly the Privacy Law, Article 52 of which defines cloud computing as the external provision of on-demand services, including infrastructure, platforms or software. Cloud providers, such as data controllers or processors, must comply with specific rules and obligations. INAI offers compliance guidance through the “Minimal Suggested Criteria for Hiring Cloud Computing Services Involving Personal Data Processing”. Draft cybersecurity laws under discussion may designate cloud services as critical infrastructure, requiring stricter security standards. Existing regulations like NOM-151- SCT1-2016 address data integrity and conser - vation.
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