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FINTECH AND FINANCIAL CRIME IN ARGENTINA: REGULATORY CHALLENGES AND OPPORTUNITIES
The convergence of financial services and technology has created a unique opportunity for innovation and growth in Argentina. However, this convergence also brings great regulatory challenges that need to be addressed.
The Argentine Regulatory Framework
Despite the lack of a comprehensive fintech law, the Argentine regulatory framework has encouraged the exponential growth of the payment market and financial innovation industry. The COVID-19 pandemic has accelerated this growth, driven by the need for digitalization.
Key Developments in the Fintech Industry
- Transferencias 3.0: Introduced by the Central Bank in December 2020, Transferencias 3.0 allows for real-time payments through an open and interoperable digital ecosystem within the Argentine National Payment System.
- Payment Service Providers (PSPs): The Central Bank has provided regulations broadening the payment systems towards interoperability. PSPs, digital wallets, and QR codes are key factors in this development.
Open Banking
The use of open banking is also gaining momentum in Argentina, with companies launching businesses incorporating some of the principal characteristics from the European model. However, there are no specific regulations in Argentina for open banking, and it remains uncertain how the Central Bank will implement and adopt it in practical terms.
Crypto-Assets and Cryptocurrencies
The Central Bank and Securities and Exchange Commission have defined crypto-assets as digital representations of value or rights that are transferred and stored electronically using Distributed Ledger Technology (DLT) or other similar technology. The use of cards for acquiring crypto-assets is prohibited, and banks and financial institutions are not allowed to carry out or facilitate transactions with digital assets.
Conclusion
The fintech industry in Argentina presents a unique opportunity for growth and innovation, but also brings great regulatory challenges. The Central Bank is constantly pursuing the simplification and innovation of financial services to reach a larger number of consumers, particularly those currently unbanked. In future years, it will be essential for regulators to introduce balanced regulations that permit the growth of existing fintech companies and the development of new players in the market.