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What does Mexico’s new Fintech Law mean for Latin America?

Fortune recently published a story that delves into the implications of Mexico’s new Fintech Law, which has been a topic of debate since 2016. In December 2017, the Law of Financial Technology (Ley de Tecnología Financiera) was passed unanimously by the Mexican Senate. On March 1st, the House of Representatives also accepted the law.

The law looks to encourage innovation in the sector to accelerate the rate of financial inclusion. Between 2012 and 2016, the banked population of Mexico grew by just 2%.

The law pushes for increased competition, safety for fintech users, promotion of financial stability, protection against money laundering, and also creates more security for investors who want to bet on the US$280M Mexican fintech sector. It will also regulate online payments, crowdfunding, and cryptocurrency.

The goal, according to the law’s backers, is to turn Mexico into the fintech capital of Latin America. Still, the country’s regulatory bodies have a lot of work ahead of them to create the regulatory framework required by the new law.

The Fintech Law places Mexico on track to create a “fintech culture” in the country, integrating financial technology seamlessly into the way people live their lives.

Read the original article in Fortune here.

Reuters coverage

Hacked coverage

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