Financial Crime World

Argentina’s Fintech Industry Faces Regulatory Challenges in 2022

Growth of Argentina’s Fintech Industry

In recent years, Argentina has experienced significant growth in its Fintech industry. Many companies have received investments worth over USD 900 million and are projecting to reach 40 million customers by 2022.

Central Bank Regulations: Impact on Profitability and Account Maintenance

However, the Central Bank has implemented regulations that may impact the profitability of payment service providers (PSPOCPs) and the free granting and maintenance of accounts. These regulations include:

Key Points

  • The Central Bank has issued Communiqués ‘A’ 6859 and ‘A’ 6885, which were amended and complemented by subsequent Communiqués, to regulate payment service providers.
  • The Central Bank has reinstated the text regarding payment service providers, requiring banks to hold in legal reserves 100% of customers’ funds deposited in bank accounts.
  • PSPOCPs have expressed disagreement with the measure, arguing it will impact their profitability and free granting and maintenance of accounts.

Additional Regulations and Resolutions

In addition to the Central Bank’s regulations, other regulatory bodies have also issued rules that affect the Fintech industry in Argentina. These include:

  • The UIF (Unidad de Información Financiera) has included crowdfunding platforms as reporting parties with the UIF.
  • The CNV (Comisión Nacional de Valores) has issued General Resolution No 717-E/2017, which includes payment service providers as reporting parties with the CNV.
  • The UIF’s Resolution No 156/2018 includes crowdfunding platforms as reporting parties with the UIF.
  • The Argentine Income Tax Law applies to profits originated in digital currency.
  • The Capital Markets Law requires individuals and legal entities to obtain authorisation from the CNV for any public offering of securities.

Recent Developments

The following regulations and resolutions have been issued by the Central Bank, UIF, and CNV:

  • Communiqué ‘A’ 7429, which obliges banks to hold in legal reserves 100% of customers’ funds deposited in bank accounts.
  • General Resolution No 717-E/2017, published in the Official Gazette on January 3, 2018.
  • UIF’s Resolution No 156/2018, dated December 26, 2018.
  • CNV’s General Resolution No 922/2022, published in the Official Gazette on February 24, 2022.
  • Communiqué ‘A’ 7406, issued by the Central Bank on November 25, 2021.

Conclusion

In conclusion, Argentina’s Fintech industry faces several regulatory challenges in 2022, including the impact of the Central Bank’s regulations on PSPOCPs and the free granting and maintenance of accounts. These challenges will require companies to adapt their business models and navigate a complex regulatory landscape.