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Fintech Regulation in Argentina: A Comprehensive Overview

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Argentina’s fintech industry has been rapidly growing in recent years, driven by the increasing demand for digital financial services. However, this growth is subject to various regulations and guidelines that aim to ensure a stable and secure environment for both consumers and financial institutions. This article provides an overview of the regulatory landscape for fintech in Argentina.

Regulatory Regime

Fintech companies operating in Argentina must comply with different regulatory regimes, including:

  • Payment Services for Credit Card Transactions (PSCCP) regime: Regulates payment services related to credit card transactions.
  • Payment Systems and Clearing and Settlement Companies (PNFC) regime: Governs the operation of payment systems, clearing, and settlement companies.

Business and Regulation of Loans

Fintech companies offering loans in Argentina face different regulatory requirements compared to traditional financial institutions. Key differences include:

  • Loan amounts and concentration among sectors: Financial institutions are subject to restrictions on loan amounts and concentration among sectors, whereas fintech companies may have more flexibility in this regard.
  • Digital onboarding systems: Fintech companies use digital onboarding systems for client identification and credit risk prediction.

Underwriting Process

The underwriting process for loans involves the following steps:

  1. Client identification: Digital onboarding systems are used to verify the identity of clients.
  2. Credit risk prediction: Credit risk is predicted using advanced algorithms and data analysis.
  3. Loan approval: The loan application is reviewed and approved based on the creditworthiness of the client.

Payment Processors

Payment processors in Argentina must comply with the following regulations:

  • Registration and reporting requirements: Payment processors are required to register and report their activities to the central bank (BCRA).
  • Interoperability among payment systems: Payment processors must ensure interoperability among different payment systems.
  • Standards for payments through QR codes: The use of standards for payments through QR codes is mandatory.

Cross-Border Payments and Remittances

Argentina has strict regulations regarding cross-border payments and remittances, including:

  • Exchange control regulations: Exchange control regulations restrict the outflow of foreign currency and impose specific requirements on the inflow of funds.
  • Prior authorization requirements for remitting funds outside the country: Prior authorization is required to remit funds outside Argentina.

Fund Administrators

Fund administrators in Argentina are subject to regulation by the central bank (BCRA).