Legal Crypto In Mexico

Cryptocurrency Regulation in Mexico

Legal Status of Cryptocurrencies

Cryptocurrencies are not considered currencies and are not accepted as legal tender for payments in Mexico. However, individuals and non-financial companies are permitted to consume, possess, and trade them. A 2021 joint statement by the Ministry of Finance (Hacienda), Banco de Mexico (Banxico), and the National Banking and Securities Commission (CNBV) confirmed that cryptocurrencies, such as Bitcoin and Ethereum, are not approved for use by regulated financial institutions. In May 2025, the Green Party introduced a groundbreaking cryptocurrency law in the Mexico City Congress, signaling the potential for a more specific legal ecosystem in the future.

Regulatory Framework for Cryptocurrencies

The Fintech Law, passed in 2018, serves as the key legislation governing cryptocurrencies. It defines virtual assets as digitally recorded values used for payments or transfers, explicitly stating they are not recognized as legal currency. Banco de Mexico supervises the virtual asset industry, designating which cryptocurrencies are enabled for use and establishing operational requisites. Platforms handling virtual assets are subject to Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) laws, requiring them to report client operations in Mexico, even if domiciled overseas. The Fintech Law establishes a regulatory sandbox for testing crypto-related fintech models, and the Securities Market Law may treat security tokens as securities, though specific definitions for initial coin offerings (ICOs) and security token offerings (STOs) are absent. Mexican commercial law allows virtual asset securities for credit transactions, and cryptocurrencies are classified as property under tax regulations, requiring reporting upon yielding gains.

Favorite Cryptocurrency Exchange Platforms and Operations

Bitso, the Mexican market leader, provides AML-compliant services, including crypto-to-fiat conversion and remittances, supporting Bitcoin, Ethereum, and stablecoins. Binance offers a wide range of cryptocurrencies while adhering to AML/CTF legislation. Volabit enables Bitcoin purchases through bank transfers and cash deposits at stores like OXXO. LocalBitcoins supports peer-to-peer trading, though regulated platforms dominate. Payment methods include SPEI bank transfers, cash deposits at retail stores, and mobile app integrations.

Decentralized Finance (DeFi) Sector

The DeFi market in Mexico is showing signs of growth, with users lending, borrowing, and trading on platforms like Uniswap and Aave. The Fintech Law lacks specific regulations for DeFi, leading to some uncertainty, though AML/CTF compliance is enforced. The proposed cryptocurrency law could address DeFi, striking a balance between fostering innovation and implementing regulation.

Non-Fungible Token (NFT) Sector

The market for non-fungible tokens (NFTs) is expanding, with Mexican creators utilizing platforms like OpenSea and Rarible for digital art and collectibles. NFTs are not well-regulated but may be subject to commercial and tax laws, with the potential to be classified as securities. The proposed cryptocurrency law could provide clarity on NFT regulations, spurring market growth.

Key Regulatory Details

• Exchanges must register with the Mexican Financial Intelligence Unit (UIF) for AML reporting.
• The Fintech Law mandates platforms to apply Know Your Customer (KYC) procedures for user identification.
• The SAT requires reporting of cryptocurrency transactions exceeding 645,000 MXN annually.
• The proposed cryptocurrency law may introduce licensing for crypto exchanges operating in Mexico.
• DeFi projects in Mexico must report suspicious transactions to comply with CTF laws.
• NFT sales may incur a 16% Value Added Tax (VAT) if conducted as part of a business.
• Banxico may impose fines of up to 1.5 million MXN for non-compliance with virtual asset provisions.
• The regulatory sandbox offers a two-year testing period for approved crypto projects.
• Crypto-backed loans require notarized contracts to be legally enforceable in Mexico.

Major Cryptocurrency Exchanges

Exchange	Headquarters	Key Features	Supported Payment Methods
Bitso	Mexico	AML-compliant, remittance services	SPEI, cash deposits, bank cards
Binance	Global	Wide crypto range, advanced trading	Bank transfers, cards, P2P trading
Volabit	Mexico	Simple Bitcoin purchases	SPEI, cash deposits (e.g., OXXO)
LocalBitcoins	Global	Peer-to-peer trading	Cash, bank transfers, mobile payments

Conclusion

Mexico’s cryptocurrency scene is shaped by a relatively friendly regulatory environment anchored by the 2018 Fintech Law. Although cryptocurrencies are not legal tender, their use is permitted, subject to stringent AML/CTF and tax regulations. Leading exchanges like Bitso and Binance provide robust market access, while the DeFi and NFT sectors are growing despite regulatory gaps. The proposed cryptocurrency law of May 2025 underscores Mexico’s ongoing efforts to refine its regulatory framework, potentially cementing its role as a significant participant in the Latin American cryptocurrency sector.