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Is Mexico ready for a Fintech Law 2.0? Digital assets, open finance, and the regulatory challenge
MEXICO CITY, MEXICO, March 26th, 2026 – Models such as distributed infrastructure, embedded finance, and Banking-as-a-Service (BaaS) have outpaced the regulatory categories established in 2018.
Eight years after the entry into force of the Law to Regulate Financial Technology Institutions (Fintech Law), the framework that positioned Mexico as a regional pioneer is beginning to show limitations in the face of market evolution.
The reason? Technological innovation—rapid, expansive, and increasingly decentralized—is continuously reshaping financial services. In this context, emerging models have surpassed the original regulatory framework, prompting a new debate: the need to rethink the rules of the game.
That discussion is already taking shape at the institutional level. Fintech Law 2.0 is emerging as the next step in the evolution of the regulatory framework, aimed at strengthening a more competitive and inclusive digital financial sector. Ángel Cabrera, Chairman of the National Banking and Securities Commission (CNBV), has indicated that the regulator is ready to contribute to the redesign of the legal framework governing fintech companies.
“The CNBV’s vision is to build an ecosystem of digitally native entities that generate value in a landscape where cash still predominates,” he stated during his participation at the Fintech Festival 2026.
This regulatory push is taking place within an ecosystem that has gained both scale and maturity. By the end of 2025, nearly 800 fintech companies were operating in Mexico, with seven out of ten having at least five years of experience—reflecting a consolidation phase. In this context, reform is driven not only by technological updates, but also by the need to strengthen competition and deepen financial inclusion.
According to SMPS Legal experts, the original design of the law—focused on Electronic Payment Fund Institutions (IFPE) and Collective Financing Institutions (IFC)—is now insufficient for a more interoperable and sophisticated ecosystem.
A growing gap between regulation and reality
Mexico’s fintech market has evolved from a niche sector into a highly sophisticated ecosystem. According to Finnovista, 795 fintech companies are currently operating in the country, with credit (21.4%), infrastructure providers (15.7%), and payments/remittances (15.1%) leading the market.
However, many emerging models no longer fit neatly within the law’s traditional classifications. As Iván Pérez Correa, partner at SMPS Legal, explains, the law still relies on relatively rigid categories, while the market demands greater interoperability and flexibility.
“What was innovative and effective in 2018 now appears rigid in the face of distributed infrastructure models, APIs, payment orchestration, and the integration of financial services into non-financial platforms,” he notes.
The shift toward invisible finance
One of the most significant transformations is the rise of embedded finance and BaaS. These models blur the line between the entity providing the financial product and the one controlling the customer relationship.
According to SMPS Legal associate Alejandro Lomelí Rubí, this shift requires a move from entity-based regulation to function-based oversight—focusing on who originates the product, assumes risk, manages data, and is accountable to both users and regulators.
Regulatory and compliance challenges
Fintech consolidation in Mexico has faced key challenges, particularly in navigating overlapping regulatory authorities such as the CNBV and Banco de México. Lengthy authorization processes—often exceeding one year—create significant friction for startups, impacting financial planning and time-to-market.
Additionally, stringent requirements in corporate governance, cybersecurity, operational continuity, and anti-money laundering impose high entry barriers for emerging companies.
Digital assets and global benchmarks
Mexico maintains a cautious and restrictive approach to digital assets. Fintech institutions may only operate with virtual assets authorized by Banco de México, limiting broader market development.
In contrast, international frameworks such as the EU’s Markets in Crypto-Assets Regulation (MiCA), Brazil’s Open Finance model, and the UK’s regulatory sandbox offer more dynamic approaches to innovation.
Rethinking the sandbox and emerging technologies
Mexico’s regulatory sandbox has delivered modest results, functioning more as a filter than a true innovation enabler. Future reforms could unlock its potential for testing technologies such as artificial intelligence, tokenization, and digital identity.
AI is already shaping risk assessment and fraud detection, but experts stress the need for stronger governance, transparency, and accountability in algorithmic decision-making. Meanwhile, digital identity is emerging as a key driver of financial inclusion, enabling safer remote onboarding and broader market access.
Toward a Fintech Law 2.0
To restore competitiveness, SMPS Legal experts identify key elements for reform:
- Functional regulation tailored to new business models
- Full implementation of open finance frameworks
- A clear regulatory path for digital assets and tokenization
- A redesigned sandbox with transparent criteria and timelines
- Stronger governance for AI, cybersecurity, and operational resilience
Ultimately, recognizing innovation is not enough—regulation must evolve to operationalize it effectively.
“If Mexico achieves this, it will not only update a pioneering law, but transform it once again into a competitive one,” the experts conclude.
The full article was made in collaboration with Lexlatin, and you can find the original article in Spanish herein: https://lexlatin.com/reportajes/riesgos-inversion-america-latina-reformas-legales
All the information placed in this article and the rights of distribution belongs to @Lexlatin.
