What it regulates, who it applies to, what the CNBV requires and how long an authorization takes, explained by the co-drafters of its secondary regulation.
We did not write it from the outside. We were at the table when the law was designed, and today we prepare the files the CNBV authorizes.
416 days was the time to the most recent IFPE authorization we prepared (Sylon, DOF 10 April 2023), against a sector average of 777. A single, dated result, not an average.
Live data:
How a group of fintechs at risk asked the regulator to regulate them, and how that became the Fintech Law.
It all began when players such as Prestadero, Bitso, the Fintech Association of Mexico and Afico recognized that the activities they were performing were in a gray area. It was possible to argue that these were regulated financial activities reserved solely for authorized entities.
The consequences could be devastating: millions in fines and even up to 15 years in prison. For entrepreneurs recognized internationally as great innovators, this represented a real risk.
During 2017, approximately 35% of Mexican FinTechs were being investigated for potential illegal deposit-taking.
Our first client at Legal Paradox® was one of those entrepreneurs, whom we, fortunately, brought out safe and sound without a single fine, let alone prison time.
As a collective, we approached the financial regulator and requested to be regulated. Fortunately, we met with receptive authorities who held more than 270 meetings so we could explain:
Our goal was clear: to leave the gray area and move into the major leagues.
The FinTech Law was published after being signed during the inaugural session of the 81st Banking Convention. With this, Mexico became one of the first countries in the world with a specific law to regulate financial technology companies.
The Law to Regulate Financial Technology Institutions (known as the "FinTech Law") is the regulatory framework that governs financial technology companies in Mexico.
With this legislation, Mexico not only moved ahead of its contemporaries but also set a standard for the region, enabling FinTechs to experiment and grow under the watchful eye of regulators.
The purpose of the Law is to regulate the financial services provided by Financial Technology Institutions (ITFs), as well as their organization, operation and functioning, in addition to financial services subject to special regulations offered or carried out through innovative means.
The Mexican FinTech Law applies to six types of entities:
The law creates two types of ITF. This is how they differ, side by side.
Days each authorization took, measured from the authorizations published in the Diario Oficial de la Federación. Market average against the most recent authorization we prepared for each license.
See our Regulatory Performance Index →Averages of all 61 IFPE and 27 IFC authorizations published in the DOF, including the two prepared by Legal Paradox®. Our timelines are single, dated results, not averages. Methodology →
The application must include the following, among others. Source: Article 39 of the LRITF.
The people and functions the CNBV expects to see in an ITF.
Certified by the CNBV.
If there is a Board of Directors, at least 20% must be independent.
In the shareholders' country of origin.
The CEO may fill this role for up to 12 months after authorization.
Validates financial information and technology infrastructure (pentest).
Highly desirable.
Yes. Depending on your business model, you may need additional authorizations for any of these activities:
Sources: INEGI, Encuesta Intercensal 2025 (population); INEGI, ENDUTIH 2025 (internet; the 82% is a Legal Paradox® calculation: 84.6% of people aged 6 and over use a mobile phone and 97.0% of them a smartphone); INEGI and CNBV, ENIF 2024 (people aged 18 to 70).
Mexico's banking system is highly concentrated: the five largest banks hold 61% of the assets, 66% of the loans and 63% of the deposits of the commercial banking sector.
FinTechs arrived to democratize access, providing services to those who were marginalized from the traditional banking system.
Mexico is Latin America's second-largest fintech ecosystem, with about 20% of the region's fintechs, behind only Brazil (24%). It went from 238 startups in 2017 to more than 800 local fintechs in 2024.
Sources: CNBV, Boletín Estadístico de Banca Múltiple, June 2026 (sum of the shares of BBVA, Santander, Banorte, Banamex and Scotiabank); Finnovista, Fintech Radar México 2025 and Fintech Radar 2017.
Once again, thank you very much for your excellent work.
We had a great reception at the Solana Summit in Mexico, thanks to Legal Paradox® for all their support.
It is the first time a law firm has asked me about my experience with them; they have earned extra points.
Traditional financial entities have moved from observing FinTechs to actively forming strategic alliances. This is what sector leaders say:
"Even though the operating environment is different, collaboration has broad potential. We both face the same challenges and are trying to solve the same problems."
"FinTechs have disrupted the financial sector, challenging the status quo. Competition is healthy, and the synergies between FinTechs and banks have yielded very good results."
Get expert advice from Legal Paradox® to navigate the Mexican regulatory ecosystem. Forty-five minutes with the partner who would handle your matter.
Below are the most relevant articles of the Law to Regulate Financial Technology Institutions. For the full text, consult the Legal Library at the bottom of this page.
Access the full documents directly from official sources.
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