In 2013, the Mexican authorities were questioned regarding the domestic regulatory process for FTTs, which prompted them, together with the industry itself, to study, explore and work on the creation of regulations that would address the national and international context in this area. In 2018, the Law to Regulate Financial Technology Institutions, better known as the “Fintech Law”, finally entered into force, and subsequently, various regulations applicable to the matter that complemented said law.
Based on data provided by the CNBV, there are currently approximately 500 platforms in the country that offer different financial services provided by FTTs. Of these, 201 are engaged in crowdfunding activities and electronic payment funds.
Pursuant to the third transitory provision of the Fintech Law, as well as in accordance with the Resolution that modifies the General Provisions applicable to FTTs, a deadline was established, which expired on Wednesday, September 25, for such platforms to request authorization to operate in the country. Failure to do so would require them to cease operations, as administrative and criminal penalties are provided for those who act in violation of such provisions.
Upon expiration of the deadline, the head of the CNBV announced that 85 platforms that were within the regulatory assumption submitted their request for authorization, in this sense, the remaining 116 will have to conclude their existing operations.
The CNBV has 180 days to resolve the authorization requests submitted by the different platforms currently operating in Mexico.
The regulation and authorization of these platforms is expected to increase financial inclusion, modernize the financial system, improve the competitive environment, provide certainty and professionalism to users of financial services, as well as a more attractive horizon for investors.
