Experts Say Mexico’s Regulations Raise the Bar ‘Too High’ for Crypto Entrepreneurs

A new Fintech Law issued by the Bank of Mexico (Banxico) clashes with the accelerated growth of fintech activity in the country. The resulting crackdown could force the closure of 201 listed startups, according to national media.

The law, passed in 2018 but only recently enforced, targets crowdfunding and electronic payments services. Over 57% of them are currently battling against time to obtain permission to do business from the National Banking and Securities Commission (CNBV).

One of the biggest barriers for entrepreneurs are the high costs required for compliance, which can reach well over $35,000. The law also demands businesses to have a minimum annual profit of $100,000, some thing few startups can achieve.

The entrepreneurs are also subject to a cryptocurrency ban. A recent version of the regulation banned fintechs from exchanging, transmitting, and holding crypto.

The Struggle With Crypto

Mexico’s regulators’ initial attempts at managing…