In Latin America, Mexico is one of the states which has adopted cryptocurrencies as an official currency, but the legislation regulating this industry is still developing. The country does apply various rules of law addressed to crypto market.
This is why, those who want to open a cryptocurrency company in Mexico can do this rather easily, while taking into consideration that this sector is still in its infancy in this country.
Our consultants in company incorporation in Mexico can help you throughout this process; if you will need to apply for a crypto license in Mexico, our team can also be of help.
|Cyprocurrency – legal tender (yes/no)||
Institution regulating the industry
|Central Bank of Mexico|
Authorization required (yes/no)
|Types of crypto activities that must be authorized in Mexico||
Financial companies, fintech institutions, electronic payment services providers.
|Rules of law applicable to crypto activities||Fintech Law, Federal Law for the Prevention and Identification of Operations with Resources of Illegal Proceeds, Circular 4/2019|
|National cryptocurrency available in Mexico||
|Share of population using cryptocurrency||
2,5% of the Mexican population
|Bank account coverage in Mexico||Less than 50% of the population has a bank account|
|Special tax rules for cryptocurrency users||No specific tax rules|
|Tax system for companies||Investors who will open a cryptocurrency company in Mexico will be taxed following the standard corporate tax system (income tax 30%, VAT 16%, withholding taxes).|
|Institution in charge with tax matters||Tax Administration Service|
|Obligations of companies regarding tax compliance||Companies are required to withhold taxes and complete and submit tax returns with the Tax Administration Service.|
|Applying for crypto license (yes/no)||Yes|
|Types of entities that must have a license||Investors who will open a cryptocurrency company in Mexico can be required to apply for a license if they are considered financial entities, as per the rules of the Fintech Law.|
|Company formation services offered by our team||One can address to our team in order to open a cryptocurrency company in Mexico for the following: preparing the incorporation documents, selecting a legal entity – public limited company (Sociedad Anonima) or the limited liability company (Sociedad de Responsabilidad Limitada), obtain a business address, obtain business licenses, register with the Mexican institutions, tax compliance, accounting, tax consultancy services, etc.|
What is the law on cryptocurrency in Mexico?
Currently, those who want to open a company in Mexico in this industry must observe certain regulations that can apply to cryptocurrencies. For instance, one of the laws that can apply is the Fintech Law.
This legislation regulates the procedures that can be applied in the case of entities that operate with virtual currencies/virtual assets.
According to the legal understanding of this law, any financial services provider that uses virtual assets is required to obtain an authorization from the Mexican Central Bankbefore engaging in any virtual asset activity.
By financial services providers, the Mexican law refers to banking institutions and to financial technology institutions. These are required to obtain a crypto license in Mexico in order to have the right to develop any activities related to cryptocurrencies.
Another legislation that is applied in this case is the Circular 4/2019, issued by the Mexican Central Bank, which determines the types of characteristics that virtual assets must have in order to be used by the above mentioned.
For more information, our consultants in company formation in Mexico remain at your service.
What are the characteristics of the Mexican cryptocurrency market?
If you want to open a cryptocurrency company in Mexico, it is of importance to know the current characteristics of the market and of the cryptocurrency users.
Firstly, it is necessary to know that the financial services market in Mexico is not very developed, compared to the current situations of other states. However, it is slowly progressing.
Below, you can find out few important details concerning financial services and cryptocurrencies in Mexico:
- at the moment, only 56% of the Mexican population has a bank account;
- only 2,5% of the Mexican population owns cryptocurrency;
- that accounts for 3,1 million Mexican citizens;
- in 2020, the country’s crypto currency, Bitso, had more than 1 million users in Mexico and Argentina;
- by 2022, the number of Bitso users increased to more than 4 million (in Mexico, Argentina and Brazil).
What are the tax considerations for cryptocurrency in Mexico?
An important matter for any person who wants to set up a company in Mexico is the taxation aspects. The same applies to cryptocurrency companies.
Even though at the moment there aren’t any specific tax regulations applied to cryptocurrencies, this does not imply that there aren’t any tax obligations.
Any tax obligations charged to cryptocurrency users have to be observed in the current tax legislation, and our consultants in company registration in Mexico can be of assistance in this matter.
It must be noted that the sole rules regarding the taxation of cryptocurrencies stipulate that the crypto companies are the ones required to withhold taxes due from users and then to report them to the Tax Administration Service.
If you need further information on the taxation applicable in this case, or on whether you need a crypto license in Mexico, please address to our consultants. Our team can help you set up a company in Mexico and obtain any permits and licenses for your business.