Law to regulate Financial Technology Institutes
In pas days, the Lower chamber approved the creation of the Law to Regulate Financial Technology Institutes, better known as Fintech Law. The mentioned law comes as an initiative that the Federal Executive power send to Congress on october the 10th 2017, and its composed by the financial services that financial technology services provides, as well as its organization, operation, functioning, particularly regarding the private sector.
Its main characteristics are:
1.- Defines the financial technology institutes as those platforms through which there is a facility to celebrate operations and financial services related to the access to funding and inversion, emission services, administration, redemption, electronic funds transmission, as well as the activation of virtual assets in such operations. It gives way to the use of the electronic signatures and authenticity systems so that the clients may have access to their own personal technology infrastructure.
Such institutions are classified in the private sector as :
- The ones with electronic payment (online wallet, cell phone related purchases and money wiring).
- Of collective financing (project investments through specific web pages)
- Of virtual assets (Cryptocurrency) and financial counseling.
2.- Considers the use of virtual assets, such as Cryptocurrency In advanced authorization from the Banco de Mexico (Banxico).
3.- In its regulatory frame, the Interinstitucional Committee from the National Banking and Securities Commission (NBSC) is created, which will be integrated by officers from the Secretariat of the Treasury and Public Credit, from Banxico and even the NBSC, which will intervene in the decision making of mayor importance,such as the granting of authorizations and penalties impositions.
4.- One of its priority aspects is to prevent money laundering risk, establishing a regulatory frame, that allows to prevent such conducts.
5.- It’s intend is to make a stronghold in the corporation government in financial technology institutes, this because the would count with a administration council, a general director and an auditory committee when needed according to the number of operations or clients, business models, intermediary assets or top capital total from each of the so told institutions.
6.- It creates the Financial Innovation Group, which will be an opinion, idea, and knowledge trading space between the private and public sector so to understand the innovations in financialñ technology matters and to plan its development and ordered regulations.
As all laws, its obligatory characteristics fit in an administrative and legal roll to work in those cases in which there’s a violation of the Law and all of its implications.