Mexico regulating its rapid growing financial technology along with the use of bitcoin. Therefore, it is to secure consumers and spur competition under a proposed bill.
Enrique Pena Nieto, Mexican President says, by Sept.20 would be unveils in the Senate. In which it seeks to ensures financial stability, defends money laundering and extremists financing.
Mexico’s new approach will allow to join a small list of countries which regulates fintech firms.
The bill draft says,
“This (legislation) recognizes the need that a sector as dynamic as that of technological innovation needs a regulatory framework that allows authorities to mitigate risks and allow for growth in a competitive environment”.
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The bill aims to set out clear rules and reduce costs t users. It should be driving competition in a sector that includes crowd funders and payment firms.
Accordingly, the bill was examines first by an independent commission and later on move to Senate for a vote. Therefore, when it is approves, the finer details would be hash out in secondary laws.
Luis Ruben Chavez, the founder of Mexican crowdfunding firm Yotepresto says, “The regulation is good news for all companies in this sector because … growth will be greater with clear rules”.
Mexico was the rapidly growing market for fintechs in Latin America. Therefore, an another industry source who declines to be named as he was consults in the bill drafting.
He adds, “We went from less than 50 (companies) in 2015 to 158 in 2016, and we already have over 240 this year”.