Mexico's Crypto Adoption to Reach $985.5 Million by 2025

Mexico has been at the forefront of regulating financial technology institutions in Latin America, with the enactment of the Fintech Law in 2018. This law legalized virtual assets, including cryptocurrency, and set the stage for the country's evolving regulatory framework in 2025. The Mexican government has been actively working on enhancing its regulatory systems to impact financial institutions and individuals in the crypto space.

As of 2025, Mexico has not introduced any new crypto-related laws but is developing an enhanced framework for fintech and digital assets, focusing on consumer protection and financial stability. Key developments include the creation of 'Digital Agents' in July 2024, which establishes a new type of banking to publicly offer digital asset services. Additionally, Bitso, a prominent cryptocurrency exchange, has been contributing to shaping the regulatory landscape of digital assets since February 2024.

The Bank of Mexico, or Banxico, is the primary regulator of crypto in the region. It is actively working on the development and implementation of a digital currency, expected to be released by the end of 2025. This digital currency aims to expand financial inclusion by providing access to digital payment methods for individuals who are unable to access traditional ones. Banxico is also ensuring compliance with anti-money laundering (AML) regulations and prohibits banks from directly dealing with virtual assets.

Mexico has not mandated any specific crypto licenses yet, but entities dealing with crypto and other virtual assets must register with the Comisión Nacional Bancaria y de Valores (CNBV). These entities must comply with AML and other mandatory regulations to offer any crypto-related services.

In terms of taxation, Mexico does not have any specific crypto laws, so the general national tax law applies. Profits from selling crypto are treated as income from the sale of goods and are subject to income tax up to 35% for individuals and 30% for legal entities. Value-added tax (VAT) of 16% applies to services or goods exchanged for crypto, depending on the classification of the transaction. If a crypto transaction exceeds US$12,500, the buyer is required to withhold 20% and pay it directly to the tax authority. Digital platforms facilitating crypto transactions may also be required to withhold the tax on behalf of the user.

The crypto adoption rate in Mexico is expected to reach $985.5 million by 2025, with an estimated 15 million crypto users. The total population of Mexico is 129.7 million, among which 37% of crypto investors are aged 25-34, and 22% for the rest of the age group. A report released in March reveals that 74% of crypto users in Mexico are men. The estimated under penetration is expected to reach 12.93% and is anticipated to grow up to 9.80% by 2033.

Mexico is one of the countries in Latin America that is currently focusing on enhancing the regulatory landscape for cryptocurrency and digital assets. By maintaining the stability of cryptocurrency with a robust legal framework and boosting security regulations, Mexico is poised to become a significant crypto hub in the global landscape.