The Mexican government is trying to adapt to the new situation. They’ve been advancing in the matter very slowly. Financial institutions may not offer to the public transactions in virtual assets such as Bitcoin, Ether, XPR and etc.
Government View
The Mexican government stated at June 28, 2021 that virtual assets do not constitute legal tender in Mexico not are they currencies under the current legal framework.
According the a new law which called “The Fintech Law” financial organizations and banks would have to receive authorization from the Mexican Central Bank in order to operate and use virtual assets.
As for taxes, there is no specific tax regulation issued for Cryptocurrencies, therefore, the corresponding tax impact should be analyzed on an individual case basis.
Crypto is not VAT exempt, therefore any transfer from a Mexican citizen to another Mexican citizen will be obligated to 16% VAT.
Trading is possible only via the options mentioned above. Depositing fiat money to the applications is only possible via credit cards or PayPal.
Privacy
The exchange of virtual assets made by non-financial entities in a habitual and professional way through electronic or digital platforms above 2,800 are obligated to be reported.
