Mexico
Answer ... There are no specific regulations applicable to blockchain technology as a whole; but some regulations could apply due to the fact that the blockchain is by nature a database.
In this regard, the applicable regulation for the protection of databases and computer programs is the Copyright Federal Law.
In addition, some of the data protection provisions of the Law on the Protection of Personal Data held by Private Parties in Mexico could apply to registered information on the blockchain.
Finally, given that blockchain technology is multi-sectoral, the applicable regulations may vary depending on the use case (eg, the General Health Law for medical records on the blockchain).
Mexico
Answer ... Mexico has become a fintech hub in Latin America. According to the FinTech Map compiled by Legal Paradox, it already has the largest number of participants in the Latin American ecosystem and the Mexican blockchain market continues to evolve.
Just three years after the publication of the Fintech Law, the ecosystem has grown more than fivefold. This is a result of the introduction of a regulatory framework that affords legal certainty to market participants, striking a balance between innovation and reduction of legal and systemic risks.
In this context, a growing number of blockchain companies (more than 50) have commenced activities on the Mexican market. Today, more than 26 different cryptocurrency exchanges are operating in Mexico, including Bitso – the largest cryptocurrency exchange in Latin America, with more than 3 million users. Bitso has already expanded its operations into Argentina, Brazil and El Salvador.
The mainstream adoption of virtual currencies would result in a plethora of new blockchain-based business models developing in and expanding into Mexico. Specifically, in the decentralised finance space for lending protocols, this would:
- modify the mining space by increasing the number of mining pools in Mexico; and
- promote the evolution of cryptographic systems and blockchain-as-a-service products in different industries.
Furthermore, such mainstream adoption would promote the use of smart contracts in the legal industry, due to an increase in the use of virtual currencies as a means of payment.
Mexico is positioning itself as a safe haven for blockchain companies around the world and should generate a significant volume of income due to its privileged position as the gateway between North and South America.