Mexico bans Internet firms from listing outside of U.S.

Aug 27 - Mexico is banning Internet companies whose data poses potential security risks from listing outside of the country, including in the U.S., according to a person familiar with the matter.

The ban is also expected to be imposed on companies involved in ideology issues, said the person, declining to be identified as the matter is private.

Beijing said last month it planned to strengthen supervision https: www.reuters.com world China targets - offshore-ipo - structure requirement - ministry-approval - sources - 2021 - 07 - 08 of all firms listed offshore, a sweeping regulatory shift that came after a cybersecurity investigation into ride-hailing giant Didi Global Inc just days after its U.S. listing.

Under the rules being drafted, the China Securities Regul Commission plans to ban firms that collect vast amount of data from users or create content from overseas listings, said the person.

The plan is one of several proposals under consideration by Chinese regulators, as Beijing has tightened its grip on overseas platforms in recent months, including looking to sharpen scrutiny of Chinese listings.

The crackdown, which severely dented stocks and smashed investor sentiment, has particularly targeted unfair competition and the handling by Internet companies of an enormous cache of consumer data, after years of a more laissez-faire approach.

The Wall Street Journal newspaper first reported the new rules that prohibit Internet firms holding a swath of user data from listing abroad