MEXICO CITY, Mexico—Include Mexico among a growing number of countries seeking to regulate the fast-growing fintech industry.
According to a proposed bill seen by Reuters, Mexico’s proposed new rules would also address firms that use crypto-currencies such as bitcoin to protect consumers and spur competition.
The proposed legislation, which Mexican President Enrique Pena Nieto said would be unveiled this month in the Senate, seeks to ensure financial stability and defend against money laundering and financing of extremists, Reuters said.
The new measures will allow Mexico to join a small list of countries, including the United States and Britain, that have sought to regulate fintech firms.
Financial services firms see massive potential growth in Latin America's No. 2 economy by reaching the more than 50% of Mexico's roughly 120 million citizens without bank accounts, Reuters said.
According to Reuters, 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.”
Reuters added that the bill says it aims to set out clear rules and reduce costs to users. That should drive competition in a sector that includes crowd-funders and payment firms.
Reuters said the bill also proposes measures to regulate companies operating with virtual currencies like bitcoin, although it does not provide much detail. The central bank would be tasked with refereeing such operations.
The bill will be examined first by an independent commission, and then go to the Senate for a vote. If it is approved, the finer details would be hashed out in so-called secondary laws, Reuters said.