Mexico’s federal government is framing new laws to regulate the country’s burgeoning financial technology (fintech) industry. The new law, says the government, will put an end to money laundering and banking fraud.

Although it is still being discussed in Congress, the legislative bill is also designed to empower the government to monitor crowdfunding and the circulation of virtual assets, such as bitcoins.

“The law has the potential to reduce operational risk, enhance transparency, and improve security for borrowers and lenders over time,” Fitch Ratings has stated in a note to investors.

“Fitch believes Mexico has significant growth opportunities for fintech considering the country’s large size, high rate of penetration of mobile phones and internet, and substantial unbanked population.”

Mexico has the biggest market for financial technology in Latin America. The country’s fintech startups include PayClip, Konfio, Prestadero, Pago Facil, Play Business, Bric, and Kubo, to name a few.

A law to regulate the industry was long overdue in Mexico because some of these fintech firms are offering a wide range of services including payments and remittances, crowdfunding, marketplace lending, and financial management.

In addition, the country’s financial services industry is today comprised of several international players including BBVA, Citibank, BlackRock, American Express, VISA, and Western Union. All of them are increasingly using technology to remain competitive.

According to Finnovista, an international startup accelerator, as many as 158 tech firms are developing fintech solutions. Some financial firms, like Canada’s Scotiabank, are running their own software centers.

Fintech solutions can be disruptive, transformational products that solve difficult problems, and tech VCs are hungry to throw money at them, making them extremely worthwhile choices for new businesses.

“Rules concerning risk measures could improve asset quality and the performance of fintech companies, as well as making competitive conditions fair for all financial market participants and improving financial inclusion in Mexico,” the ratings agency stated.