Stablecoin issuer / redeemer in Mexico

Issuers are not directly licensed; platforms handling stablecoins must comply with AML rules as "vulnerable activities."

Fintech institutions require Banxico authorization for virtual asset services, limited to internal operations per Circular 4/2019. No public authorizations exist for stablecoin issuance or public offerings.

Crypto exchanges register with SAT and UIF (53 entities as of 2024).

Banxico: Regulates virtual assets for financial institutions; authorizes internal operations but bans client-facing custody.

AML/CTF Law (Ley Federal para la Prevención e Identificación de Operaciones con Recursos de Procedencia Ilícita): Classifies virtual asset operations by non-financial entities as vulnerable activities, requiring KYC, internal policies, transaction monitoring, and reporting to the Financial Intelligence Unit (FIU) for transactions over ~$58,000 MXN (645 UMAs) per client in six months.

Fintech Law (Ley para Regular las Instituciones de Tecnología Financiera): Defines virtual assets and grants Banxico regulatory powers but excludes non-financial custody from licensing.

Exchanges, Custody Providers, Payment Processors (Non-Financial Entities): No license or registration needed; services can be offered to the public if not reserved for regulated entities.

Financial Institutions/Fintechs: Authorization from Banxico required for any virtual asset operations; prohibited from public services.

No approvals granted by Banxico post-2019 secondary rules, with fines up to $47,000 for violations.

AML/KYC: Mandatory for all providers serving Mexican residents, including:

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).

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.

Security tokens: Those representing or underlying securities (e.g., tokenized stocks or bonds) fall under Securities Market Law scope.

Circular 4/2019 (Banxico): Limits financial entities to internal virtual asset operations with prior approval; bans public-facing services.

Fintech Law (2018): Regulates FTIs handling virtual assets. https://www.diputados.gob.mx/LeyesBiblio/pdf/LIFT_200318.pdf

Financial Intelligence Unit (FIU) and Ministry of Finance and Public Credit (SHCP): Enforce AML/CTF reporting for transactions above thresholds; SHCP oversees broader AML/CTF implementation.

Businesses/Corporations: Monthly ISR advance payments; separate declarations if transactions exceed MXN 50,000 (~USD 2,700) per Fintech Law; accrual accounting; expense deductions (e.g., mining electricity) require documentation.

Individuals: Progressive rates from 1.92% to 35% on net gains (disposal proceeds minus inflation-adjusted acquisition cost, using FIFO, identified cost, or average cost methods); no loss deductions allowed; annual exemption on movable property gains up to MXN 1,829,811.95 (~USD 90,000–100,000, varying by source and year).

Corporations: Flat 30% rate on all income, including crypto; monthly advance payments based on profit quotient; accrual basis recognition.