Frequently Asked Legal Questions
What makes Etherfuse® legally unique?
Etherfuse Liquid Mx, S.A.P.I. de C.V. ("Etherfuse Liquid") is the only Mexican blockchain company with a resolution from the financial authority (CNBV) confirming that its Tokens do not require authorization, registration, or concession by financial regulators. This gives Etherfuse® a unique competitive advantage in the Mexican market.
As a context, Etherfuse Liquid initiated -before the National Banking and Securities Commission ("CNBV") in Mexico- a procedure in order to be authorized ("Authorization Request"), in essence, to receive funds from the general public derived from the issuance and placement/trading of blockchain digital assets ("Tokens") whose possession brings with it the right to claim payments to be made by Etherfuse®, arguing that the characteristics of the Tokens could update the definition of Security provided in the Securities Market Law ("SML") whose public offering and placement requires prior authorization by the CNBV.
On April 16, 2024, the CNBV issued the Resolution P090/2024 through which, among other aspects, it states:
"1.- With respect to the Tokens... it was not identified … that such assets meet the formal or doctrinal elements of a credit title, nor the formal elements of a Security; nor the formal elements of an electronic title... therefore, it can be validly concluded that...:
Tokens do not constitute credit titles, since they do not comply with the formal requirements established in the General Law of Credit Titles and Credit Transactions.
The Tokens do not constitute Securities in terms of what is established by the SML, since, although they may share some of the characteristics of Securities, they do not comply with all the formal requirements of the SML, among which the most important are that they are not a credit title and that they are not susceptible to circulate in the markets regulated by said Law.
The Tokens do not constitute Electronic Titles in terms of article 282 of the SML, since they do not comply with the formal requirements established in Circular 36/2020 issued by Banco de México, among others, they are not susceptible to be deposited in a Securities Depository Institution.
"2.- ... it continued to be noted that the services it intends - Etherfuse Liquid - to offer are not subject to any authorization, registration or concession in accordance with the Law to Regulate Financial Technology Institutions ("FinTech Law") or any other financial law...."
Pursuant to the above, it can be concluded that: (i) the above consideration issued by CNBV is a definitive administrative act that puts an end to the procedure, therefore, the services that Etherfuse Liquid intended by the Authorization Requested does not require authorization, registration or concession by the Mexican financial regulator; (ii) the administrative act only applies to Etherfuse Liquid, giving it a competitive advantage in the Mexican market; and, (iii) in any case, Etherfuse Liquid must comply with the applicable general regulations, particularly those related to the prevention of money laundering and the treatment of personal data.
Based on the foregoing, Etherfuse Mx, S.A. de C.V. ("Etherfuse Mx" or "Etherfuse®"), as part of the same business group of Etherfuse Liquid, by reverse solicitation -that is, by means of a private and direct invitation- offers to its customers the entering into an Agreement for the Provision of Services and Commercialization of Tokens derived from which Etherfuse® makes available to them an internet platform that Etherfuse® manages allowing them -to its customers- the acquisition of Tokens issued by Etherfuse® (hereinafter, "Stablebonds") upon payment made by the customer through USDC.
Are these tokenized assets real?
Is Etherfuse a legal and regulated Mexican entity?
To whom can I make a complaint?
Will Etherfuse® identify me?
Regulatory Status
Compliance
Etherfuse® offers products and services in compliance with its corporate purpose, as well as in compliance with Mexican regulations, such as the Securities Market Law Ley del Mercado de Valores (LMV), Federal Consumer Protection Law Ley Federal de Protección al Consumidor (LFPC), the Personal Data Protection Law Ley Federal de Protección de Datos Personales en Posesión de los Particulares (LFPDPPP), the Commerce Code Código de Comercio (CCO), the Federal Civil Code Código Civil Federal (CCF), the Civil Procedures Code Código Código Nacional de Procedimientos Civiles (CNPC), without any contravention of said regulations, including other financial regulation such as the Credit Institutions Law Ley de Instituciones de Crédito (LIC), the Law to Regulate Financial Technology Institutions Ley para Regular las Instituciones de Tecnología Financiera (LRITF), among others.
Different authorities and third parties have participated in the incorporation and operation of Etherfuse® such as: (i) the Ministry of Economy Secretaría de Economía (SE) in Mexico that grants the authorization for the use of the corporate name of Etherfuse®; (ii) a notary public that provides certainty of the existence of the company; (iii) the Industrial Property Mexican InstituteInstituto Mexicano de la Propiedad Industrial (IMPI) before which the company's trademark has been registered; and, (iv) brokerage houses through which the financial assets purchased by Etherfuse® are acquired, among others.
The above in addition to suppliers contracted by Etherfuse® to have storage measures, information security and operational continuity, as well as legal certainty in the execution of agreements (Legal Paradox®*).
Who is Etherfuse®’s legal representative?
How can I find out more about Etherfuse®?
Legal Representation
Legal Paradox® is the only boutique law firm in Mexico focused exclusively on FinTech and Blockchain issues since 2017.
To date, they have advised more than 410 national and foreign companies in the sector, which has led them to be recognized by agencies such as Leaders League and Chambers and Partners as part of the international elite and by Foro Jurídico as Mexico ́s most disruptive digital lawyers.