Cryptocurrency in Mexico: legal for you, barred for your bank
In short. Mexico wrote crypto into law in 2018 and then told its banks to keep away from it. The fintech law recognised virtual assets, and a central bank circular from 2019 stopped banks and licensed fintech institutions from offering them to customers, so the market you actually use sits outside the regulated perimeter. Owning and trading is lawful for you. Gains join your other income and meet rates that climb to 35%.
- GAINS
- Up to 35%added to your other income
- ANNUAL EXEMPTION
- ~128,000 pesosthree times the annual UMA, 2026
- COST BASIS
- Inflation-adjustedyou index the purchase price
- BANKS AND FINTECHS
- May not offer cryptounder the 2019 circular
- EXCHANGE REPORTING
- Since April 2026data flows to the tax authority
- LEGAL TENDER
- Nothe peso stays the only legal money
What the 2019 circular closed
The 2018 fintech law gave virtual assets a definition and put the banking and securities commission in charge of licensing fintech institutions, with the central bank deciding which virtual assets those institutions may touch.
The central bank used that power the following year. Under its 2019 circular a bank or a licensed fintech institution may not offer crypto custody, exchange or transmission to its clients, and may use virtual assets only in internal operations the central bank has authorised.
Most countries restrict the customer and license the institution. Mexico did the reverse: you may buy, hold and sell crypto without restriction, while the institutions sitting closest to the financial system cannot serve you. Mexicans trade through firms outside that perimeter.
How the tax works
The tax administration treats crypto as intangible movable property under the income tax law, so selling it counts as disposing of property. Your gain is the sale price less what you paid, and you adjust that purchase price for inflation before subtracting it.
That indexation is worth more than it sounds in a country with Mexico's inflation record. Hold a position for several years and the adjustment shrinks the taxable gain that a nominal calculation would have produced.
The gain then accumulates to your other income for the year, so a salary already in the upper brackets pulls your crypto profit up with it, to a top rate of 35%. An annual exemption sits underneath: three times the annual UMA, around 128,000 pesos for 2026, on gains from disposing of property. You declare in the annual return due by 30 April.
The reporting changed in April 2026
Mexico joined the international framework for exchanging crypto-asset information, and from April 2026 exchanges pass transaction data to the tax administration.
That closes a gap people had come to rely on. The platforms stayed outside the fintech perimeter, which is where the central bank left them, and the tax administration now receives their data regardless.
A reform everyone is asking for
The 2018 text predates stablecoins at scale, decentralised finance and NFTs, and it shows. Its last significant reform reached the official gazette in November 2025, and in May 2026 the commission published an agreement simplifying eight administrative procedures for fintech institutions.
Something larger is under discussion. Since June 2026 the industry has been pressing for what it calls Fintech Law 2.0 under the commission's new head, asking for tiered licensing, open finance rules, treatment for the products the 2018 law never contemplated, and a permanent regulatory sandbox.
Nothing in that package has passed, so treat every figure attached to it as a proposal.
What this means if you are moving there
The tax rule is easy to follow. The market around it takes explaining.
The inflation adjustment is a real benefit in a country that has had inflation to adjust for, the annual exemption covers small disposals, and nothing stops you owning or trading. The cost lands on convenience: your bank cannot hold or exchange crypto for you, the platforms that can are outside the licensed perimeter, and your top rate follows your salary rather than the asset. Someone earning well in Mexico pays 35% on crypto gains that Poland would tax at 19%.
Allowed
- Buy, hold and sell virtual assets as an individual or a non-financial business
- Adjust your purchase price for inflation before calculating the gain
- Take the annual exemption on gains from disposing of property, three times the annual UMA
- Use platforms outside the fintech perimeter, which is where the market operates
Restricted
- Expecting your bank to hold, exchange or transmit crypto for you
- Getting crypto services from a licensed fintech institution, which the 2019 circular bars
- Assuming exchange activity stays private, since reporting to the tax administration began in April 2026
- Paying in crypto as of right, since the peso remains the only legal money
How the rules took shape
The fintech law defines virtual assets and puts fintech institutions under the banking and securities commission.
A central bank circular bars banks and fintech institutions from offering crypto to clients, allowing only authorised internal use.
The most recent significant reform of the fintech law reaches the official gazette.
Exchanges begin reporting crypto transaction data to the tax administration under the international exchange framework.
The commission simplifies eight procedures in May, and from June the industry presses for a broader reform covering stablecoins, decentralised finance and tiered licensing.
Worth knowing
In 2024 the Bitso exchange handled $6.5 billion in transfers from the United States — over a tenth of the world's largest remittance corridor by volume.
Common questions
How much tax will I pay on a crypto gain?
Your gain accumulates to your other income and meets the progressive rates, which reach 35%. You adjust the purchase price for inflation before calculating the gain.
Is any of it exempt?
Yes. Gains from disposing of property carry an annual exemption of three times the annual UMA, around 128,000 pesos for 2026.
Can my bank hold crypto for me?
No. The central bank circular of 2019 bars banks and licensed fintech institutions from offering crypto custody, exchange or transmission to clients.
Are exchanges reporting me to the tax office?
Since April 2026, yes. Mexico joined the international framework for exchanging crypto-asset information and exchanges pass transaction data to the tax administration.
Is a new law coming?
The industry has been pushing since June 2026 for a wider reform covering stablecoins, decentralised finance, NFTs and tiered licensing. Nothing has passed, so treat it as a proposal.
Sources
Other countries
Updated 21.08.2026 · this is reference material, not investment or tax advice