Manuel Flores considers that the Fintech Law does not provide clarity to undertake projects in Mexico. The Fintech Law provides some security, but it has not been enough to stop scams.
According to Manuel Flores, head of the Mexican chapter of the Blockchain Alliance, the Fintech Law in force in Mexico represents a new obstacle to the development of blockchain and cryptocurrency projects.
Flores says that the regulations of the Fintech Law do not provide greater clarity about the possibilities of projects focused on blockchains or cryptocurrencies.
In the specialist’s opinion, this type of project continues to be very unclear concerning the current regulatory framework. He added that, far from facilitating the procedures to launch ventures focused on these technologies, the Fintech Law “has been an obstacle in many respects.”
Among other problems, Flores highlights that the institutions responsible for ensuring compliance with this law are “very closed.” In other words, they hinder processes rather than make them more understandable.
For this reason, many companies desist from their efforts to align with the Law. In Flores’ experience, this has happened with national and foreign companies. The latter, seeing the difficulties in adapting to the current legal framework, “are taking a step backwards.”
Another aspect that entrepreneurs in Mexico tend to consider is how expensive it is to fully adapt to the Fintech Law. This agrees with the view of Emilio Rivero, an analyst at the exchange Bitso, who stated that adapting to the law would be very expensive for some companies in the sector.
Is there anything to rescue from the Fintech Law in Mexico?
“We aren’t doing as well as people sometimes say,” said Flores about the blockchain and cryptocurrency landscape in Mexico.
In his opinion, the Fintech Law has not substantially improved the outlook. However, Flores considered that the existence of this legal framework helps stop possible scams or, at least, slightly reduces the risks, concerning users.
The existence of a law that regulates projects “gives a little more security to end users who want to invest in the world of cryptocurrencies and can avoid scams,” according to Flores. In this respect, he added that it is important to hear that people “can take legal action on any problem.”
However, the CEO and founder of the Bitcoin Community in Monterrey acknowledged that scams continue to take their toll on the country. The adaptation difficulties that the Fintech Law causes for companies benefit actors who seek to defraud in the name of blockchain platforms.
The specialist explained that many companies do not adapt to the law and take advantage of it to scam. “They say ‘it is a slow process, I am adapting to the Fintech Law’, but in the meantime they are making millions.”
The development of this law received a lot of support from the community of companies dedicated to blockchain and cryptocurrencies in Mexico. Many of those involved hoped that this legal framework would help the ecosystem advance in the country.
Flores was one of those who supported this initiative but now considers that the Fintech Law, far from promoting this development of new projects, discourages these advances. Analysts and members of the cryptocurrency community in Mexico have previously warned of this situation.
By Alexander Salazar