Mexican federal commission Cofemer has released a new version of the draft of secondary legislation for the country's financial technology law which, in part, seeks a different set of minimum capital requirements for fintech firms, El Economista reported.
In the version published by Cofemer, the commission establishes that the minimum capital required for crowdfunding and electronic payment businesses with a single financing operation should be 500,000 Udis, the inflation-indexed investment units, which would be equivalent to roughly 3.0 million Mexican pesos.
Meanwhile, Cofemer wants fintech firms, either crowdfunding or electronic payment funds, with multiple financing operations to have a minimum capital of 700,000 Udis, or about 4.2 million pesos.
In the first version of the draft which was circulated in July, the minimum capital requirement for crowdfunding entities with a sole financing operation is set at 210,000 Udis, or about 1.2 million pesos. Crowdfunding platforms with several operations are required to have a capital of at least 315,000 Udis, or about 2.0 million pesos.
As for electronic payment funds, the first version seeks to have a minimum capital of 1.0 million Udis, or about 6.0 million pesos, for entities with one type of operation. The minimum capital for electronic payment entities could rise to up to about 1.8 million Udis, or about 10.5 million pesos, depending on the number and class of authorized operations.
In addition, the Cofemer version of the secondary rules provides different limits on crowfunding loans to four financing segments. The commission set the cap for crowdfunding loans at 500,000 Udis for individuals and about 1.7 million Udis, or about 10.0 million pesos, for the other three financing types.
The other crowdfunding financing segments include businesses, companies involved in real estate development and co-funded and co-owned investment projects.
In the first version of the draft, crowdfunding loans for individuals is limited to 50,000 Udis, or about 301,000 pesos, while the other segments seeking such loans are limited to 8.3 million Udis, or about 51.0 million pesos.
The Cofemer version will not be final until it is published in Mexico's official gazette.
Secondary regulations for Mexico's financial technology law should be ready by September, banking and securities regulator CNBV has said previously.
The Mexican Congress approved the fintech law in March, making it one of the first countries in the region to have a regulatory framework for such firms. The fintech law recognizes startup businesses for electronic payments and crowdfunding.
As of Aug. 7, US$1 was equivalent to 18.46 Mexican pesos.