CRYPTO & TAXES IN MEXICO
Stablecoins in Mexico: USDT, USDC and the UST case
Direct answer
USDT (Tether) and USDC (Circle) are the main dollar-pegged stablecoins; UST, by contrast, was algorithmic, lost its peg and collapsed in 2022. Holding a stablecoin does not avoid taxes: swapping it or paying with it can be a taxable event in Mexico.
USDT vs USDC: issuer, backing and network
A stablecoin is a design promise: the issuer says each token is worth one dollar. USDT, from Tether, is the largest by market cap and the most used in Latin America. USDC, from Circle, is known for its reserve reporting and institutional adoption. Both are pegged 1:1 to the dollar and live on several networks, such as Ethereum, Tron or Solana. None of this is a recommendation.
The network matters as much as the coin. The same USDT exists on several networks and they are not interchangeable: the sending and receiving network must match, or funds can be lost with no reversal. Network fees, in turn, are paid in that network’s native coin.
- USDT (Tether): the largest by market cap and the most used in the region.
- USDC (Circle): known for reserve reporting and institutional adoption.
- Both: a 1:1 dollar peg, available on several networks.
- Rule of thumb: same network when sending and receiving; fees are paid in the native coin.
The UST case: when the peg breaks
UST, from Terra, was not a stablecoin backed by dollars: it was algorithmic, held up by an algorithm and its sister token LUNA, not by real reserves. In May 2022 it lost its one-dollar peg, and the LUNA/UST collapse wiped out nearly 45 billion dollars in a week. The company behind it later went bankrupt, and the token no longer functions as a stable dollar.
The lesson is direct: "stablecoin" is a design promise, not a guarantee. Before using one, check who issues it, what really backs it, and which network it lives on. If your case involves meaningful amounts, ask us in your consultation.
How stablecoins are taxed in Mexico
Mexico has no crypto-specific tax law. The Fintech Law calls them "virtual assets", and the SAT treats them as intangible property. Holding USDT or USDC is not taxed by itself, but swapping them for other crypto, selling them for pesos, or paying with them can be a taxable disposal or swap (enajenación or permuta).
The gain is the sale price minus your proven cost, adjusted for inflation (INPC). Occasional gains stack onto your other income on the progressive ISR scale (1.92% to 35%) and go on the annual return, due April 30. Everything is valued in pesos at the Banxico rate. And remember: using foreign platforms does not exempt you from filing in Mexico.
Frequently asked questions
Are stablecoins taxed in Mexico?
On their own, no: holding USDT or USDC does not create tax. The taxable event appears when you dispose of them — for example swapping them for other crypto, selling them for pesos, or paying with them. That can be a disposal or a swap, and if there was a gain, ISR applies. Confirm your case in your consultation.
How do I choose a stablecoin?
Look at three things: who issues it, what really backs it, and which network you will use. USDT and USDC are pegged 1:1 to the dollar and are the most used; neither is a recommendation from us. Always verify that the sending network matches the receiving network.
Can a stablecoin lose its dollar peg?
Yes. UST proved it in May 2022: it was algorithmic, with no real dollar reserves, and the LUNA/UST collapse wiped out nearly 45 billion dollars in a week. "Stablecoin" describes a design, not a guarantee. Check issuer, backing and network before trusting one.
Related questions
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