Two New Companies Authorized Under Fintech Law

Mexico’s Ministry of Finance and Public Credit (SHCP) announced on the Official Federal Gazette (DOF) that two more companies were now authorized to operate under the terms of the Law to Regulate Financial Technology Institutions, also known as Fintech Law, reports El Economista. The two companies authorized are Likideo MX and Inguz Digital. With these two authorizations, there are now a total of six companies authorized to work in Mexico under this regulation.

Likideo MX

Likideo is a Mexican crowdfunding platform based in the Miguel Hidalgo municipality in Mexico City, according to DOF. The company reported an initial capital stock of MX$3.5 million (US$167,600). The company’s legal representative is Diego Ostos Guerresi. “The members of the Interinstitutional Committee, on the basis of articles 11 and 35, in relation to Art. 15 of the Law to Regulate Financial Technology Institutions, unanimously approved the authorization for the organization and operation of the crowdfunding institution known as Likideo MX, SAPI de C.V., Crowdfunding Institution,” reads DOF.

Inguz Digital

Inguz Digital is an Institution for electronic payment funds, according to DOF, with an initial capital stock of MX$5 million (US$239,400). The company aims to offer emission, administration, withholding and transmission of digital payment funds and to operate fully within the Fintech Law, the applicable legislation from the National Baking and Stock Commission (CNBV) and the Mexican Central Bank.

Fintech Footprint

Mexico’s Fintech Law has allowed for legal certainty in the country. “It has been extremely welcomed and offers greater security for potential investors,” explained Luis Silva de la Torre, Director General at Fintech Mexico, in an interview with MBN. After the pandemic, the process for the authorization of fintech companies in Mexico came to a halt as CNBV shutdown operations, reported MBN. The CNBV reconvened in August but there are still challenges to address, including cryptocurrencies, crowdfunding and wallets. “There are still legal gaps to be addressed, such as fiscal issues among crowdfunding companies,” said Silva.

Mexico is embracing innovative technologies for financial services, “with more than 441 fintech companies in 2021 offering a range of services like digital banking, payments and remittances, microfinance and crowdfunding and insurtech,” said René Arce and Dinorah Pensado, Partner and Associate, respectively, at Hogan Lovells, in an article for MBN. Fintech companies are a great ally for the creation of innovative technologies that can aid in the closing of gender gaps and promotion of financial inclusion in the country. “Electronic distribution channels and digital client onboarding processes can help neglected groups by making services more efficient and lowering market entry barriers for new competitors,” they wrote.