The Mexican government considers the country's new fintech law as a key element to boost financial inclusion among its citizens and will advance the introduction of secondary regulation to implement the new rules before a new administration takes office following midyear elections, Finance Ministry Undersecretary Miguel Messmacher said.
Speaking at an annual banking convention, the official said regulators will submit the new secondary regulation within six months. "Technological change is generating challenges for all, but it is also generating enormous potential to facilitate the access of the population in general to financial services," Messmacher said, according to a report by El Economista.
During the event, Mexico's banking association, ABM, reportedly welcomed the law and said that the sector would work closely with the authorities to build an environment of competition in order to generate products and services for Mexicans.
Earlier in March, financial regulator CNBV said it needed a transition period of six months to issue the first set of fintech rules which would entail developing and issuing secondary provisions that will regulate the market but could not be written in the first draft of the law.
The bill, which was passed March 1, provides a general framework for fintechs dealing in crowdfunding and electronic payment methods.
The rules include requiring fintech firms to have resources of their clients in bank accounts, and banks will also be prevented from discriminating against companies by denying them from opening accounts or carrying out arbitrary closures. Overall, the law focuses on financial stability and the prevention of money laundering.
