Mexico -- Securities Classification Regulatory Overview

Mexico classifies cryptocurrency tokens as securities on a case-by-case basis under the Securities Market Law (Ley del Mercado de Valores) if they represent securities or underlie securities, without a formal equivalent to the U.S. Howey test; instead, regulators assess characteristics and circumstances of each token.[1][3][6]

Legal Test Used

Mexican authorities, including the National Banking and Securities Commission (CNBV), Bank of Mexico (Banxico), and Secretariat of Finance and Public Credit (SHCP), evaluate tokens individually based on their features rather than a codified test like the Howey test. A December 2017 joint statement noted that tokens from ICOs or similar schemes could qualify as securities depending on their type, category, and circumstances, triggering Securities Market Law obligations.[3]

Tokens Considered Securities

• Security tokens: Those representing or underlying securities (e.g., tokenized stocks or bonds) fall under Securities Market Law scope.[1][3]
• Certain stablecoins: If issuers receive, manage, safeguard public funds, and enable redemption/transfer, they may fall under the Fintech Law (Ley para Regular las Instituciones de Tecnología Financiera, March 2018).[1]
• Other cryptoassets: Not formally classified; utility tokens staying on native platforms are typically outside regulation, while payment tokens can fulfill obligations if contractually agreed. Virtual assets are not legal tender or currencies.[1][3][6] No comprehensive taxonomy exists from Banxico or CNBV.[1][6]

Registration/Exemption Requirements for Token Issuers

Securities-classified tokens offered in Mexico must register in the National Securities Registry. Exemptions apply if offered exclusively to institutional or qualified investors.[3] Financial Technology Institutions (FTIs) and banks can handle crypto operations only with Banxico authorization under Fintech Law; ICOs have not occurred on Mexican stock exchanges.[1][3]

Secondary Trading Rules

Secondary trading of security tokens is regulated under Securities Market Law, requiring CNBV authorization. Crypto exchanges must comply with cybersecurity, segregated accounts, and AML rules under Fintech Law and Federal AML Law (amended March 2018).[1][3] Virtual asset conversions, custody, or transfers trigger AML compliance.[1][6]

Enforcement Examples

No specific enforcement cases detailed in available sources. Regulators issued a 2017 public alert on ICO risks, emphasizing potential securities classification without known ICO prosecutions or actions.[3] CNBV enforces via supervision of FTIs and prohibits unauthorized financial institution involvement with virtual assets.[5][6]

Key Legislation and Regulatory Guidance

• Fintech Law (2018): Regulates FTIs handling virtual assets. https://www.diputados.gob.mx/LeyesBiblio/pdf/LIFT_200318.pdf
• Securities Market Law: Governs security tokens. https://www.diputados.gob.mx/LeyesBiblio/pdf/LMV_180722.pdf
• Federal AML Law (as amended 2018): Covers virtual asset transactions. https://www.diputados.gob.mx/LeyesBiblio/pdf/LFPIORPI_180818.pdf
• 2017 Joint Statement (CNBV/Banxico/SHCP): ICO risks and securities potential. No direct URL in results; referenced in [3]. Sources note ongoing conservative approach with no CBDC details beyond 2024 plans (potentially outdated).[1][5]