How to crypto 101: Mexico

Mexico is paying close attention to how crypto is changing the world. While some countries are still figuring out what to do, Mexico has already started building clear rules for this new space. With the Mexico FinTech Law, the country took its first real step toward making crypto part of its financial system. This guide takes a closer look at how crypto Mexico laws work today, and what they mean for anyone using or exploring Bitcoin Mexico in everyday life.

Mexico’s legal definition of digital assets and the state’s position

The government of Mexico has been building rules to better control crypto Mexico activity. The way people use digital coins like Bitcoin Mexico is changing fast, and Mexico wants to keep up. In 2018, the country introduced the Mexico FinTech Law, a key step in shaping how crypto Mexico works. This law was the first to define what virtual assets are and who can deal with them. Some businesses in Mexico that use crypto don’t need government approval. But others, like banks, must get permission before they can offer crypto services. These two groups - non-financial companies and official financial entities - follow different rules. Knowing which group a business falls into is important if it wants to work with Bitcoin Mexico or offer cryptocurrency services in the country. These rules help the government understand who is doing what with digital assets.

While the Mexico FinTech Law gave crypto Mexico a basic legal structure, the country still doesn’t treat Bitcoin Mexico as money. The Central Bank, Banxico, does not support or guarantee it. So, Bitcoin Mexico cannot be used to pay taxes or act like regular cash. Still, the government recognizes that people use crypto in many ways, often having it as part of broader digital activity. That’s why new legal changes have started to open the door to more official use. In 2023, the National Procedures Code added definitions for blockchain and even the metaverse. For the first time, it accepted data stored on a blockchain as legal proof.

This is important for crypto Mexico, since most transactions like ownership or transfers happen on public blockchains. With these updates, the court will now accept this kind of digital proof, unless someone shows it was altered. These changes make it easier for Bitcoin Mexico to play a role in legal and financial matters.

In 2024, Mexico went even further by updating its credit law. Now, financial documents can be fully digital and traded online. If companies use blockchain for storing these digital credit titles, the law will accept them. This shows that the country sees value in crypto Mexico tools - not just for trading coins but also for protecting important data. Bitcoin Mexico could one day be part of how these digital tools are exchanged, tracked, or stored. At the same time, Banxico joined Project Agorá, a global effort to explore better ways of moving funds using blockchain. This project brings together public and private players to study how central banks and commercial banks can work with digital currencies. For crypto Mexico, this means the government is not ignoring innovation. Instead, it’s carefully testing what works best. These actions show that Mexico is open to new tech, even if it still treats Bitcoin Mexico with caution. That balance could help crypto Mexico grow in a safer and smarter way.

How Mexico regulates crypto operations and financial institutions

Mexico has taken a unique route when it comes to regulating digital assets. Instead of dividing every type of token into different laws, the country focused on one core concept - virtual assets. Under the Mexico FinTech Law, virtual assets are defined as digital units used by the public to make payments through electronic means. However, they are not seen as money, foreign currency, or anything backed by the central bank. This means that while digital tools like Bitcoin Mexico can be used in daily life, they don’t carry the same legal strength as pesos. Even though it is popular, Bitcoin Mexico is not considered legal tender. That’s why banks and other licensed institutions in Mexico are not allowed to use it directly with their clients. The law prefers to keep this sector at a safe distance from the traditional banking system.

The situation changed a bit with the 2019 Banxico Circular 4/2019. It confirmed that financial institutions, including banks and fintechs, cannot offer virtual assets directly to their customers. The reason was simple: risks. These digital assets move fast, change value quickly, and many people don’t fully understand them. Bitcoin Mexico was seen as too volatile, and Banxico wanted to protect everyday users. Still, the law left a door open. If a financial company wants to do internal operations with crypto Mexico assets, it can ask for permission. So far, no such permissions have been granted. If things change in the future, these companies will need to clearly explain to clients what crypto Mexico is, why it’s risky, and how it works. This includes telling people that Bitcoin Mexico is not protected by the government and that once a transaction is done, it can’t be undone.

Interestingly, non-financial businesses face fewer limits. They are allowed to offer services involving crypto Mexico under anti-money laundering rules, not banking laws. This makes it easier for exchanges and wallet apps to operate in the country. Even if they are based outside Mexico, if they serve local users, they must follow local rules. This idea became stronger when the FIU Mexico crypto framework was updated in 2021. It said that foreign companies working with Bitcoin Mexico must also follow the country’s financial crime laws. At the same time, Banxico is working on its own digital peso. While it’s not a full crypto Mexico, it shows that Mexico is watching this space closely. For now, regulation walks a line between caution and innovation, and offers more room for technological development while providing oversight.

Mexico’s tax approach to digital assets

Tax laws in Mexico do not offer a specific system for taxing virtual assets. This creates uncertainty for people and companies involved in crypto Mexico activities. However, the general rule still applies - everyone must pay taxes under laws like the Income Tax Law and the Value Added Tax Law. These rules treat income from selling virtual assets the same way as other goods. That means profits from Bitcoin Mexico are not seen as gains from currency exchange, even though countries like El Salvador treat Bitcoins as official money. In Mexico, it is more like purchasing and selling a product, and taxes apply in that way.

If someone in crypto Mexico sells a digital asset and earns over a certain amount, they must pay a 20% provisional income tax. This applies to individuals, and the buyer is responsible for withholding the tax if they are based in Mexico. If not, the seller pays it. All this must be reported with an electronic invoice. Platforms involved in Bitcoin Mexico trades must also follow rules and submit proper records to tax authorities. Though complex, the goal is clear - Mexico wants people who profit from crypto Mexico markets to follow the same tax duties as any business. This reflects how fast Bitcoin Mexico has grown and how the system tries to keep up. For many traders, this means keeping accurate records and reporting gains consistently to avoid penalties. This system also allows authorities to maintain control without blocking innovation.

AML requirements and user verification in the crypto space

In Mexico, rules to prevent money laundering and terrorist financing are becoming stricter, especially in the world of digital assets. Banks and officially licensed financial institutions are not allowed to offer services involving virtual assets to clients. Because of this, they don’t apply anti-money laundering (AML) measures directly linked to cryptocurrency. However, non-financial companies that work with virtual assets are treated differently. These companies must follow detailed AML laws if they allow users to buy or sell Bitcoin Mexico. Their first step is registering with the tax authority and getting access to the official online portal for money laundering prevention.

Once approved, platforms must identify their customers clearly. They must collect full names, identification documents, and check who the real owners behind each account are. This helps the government know who is moving money through Bitcoin Mexico and where that money is going. If someone buys or sells a large amount of crypto - more than a set monthly limit - the company must report that to the FIU Mexico crypto authority.

The same rule applies if the company believes something looks suspicious. Information must be updated regularly and kept on file for five years. These details are linked to verified user accounts, forming a network of traceable digital interactions.

These checks are vital because they make crypto Mexico platforms more transparent. Even companies based outside the country must comply if they serve Mexican users. If they fail to follow these steps, they risk losing access to the market. With Bitcoin Mexico becoming more common, Mexico’s AML laws aim to build a safer space for digital finance. Meanwhile, industries like mining continue to operate in parallel, often requiring separate oversight.