Also, the QR payments and acquiring business became more and more open to competition.
The change of government in 2019 did not affect the trend and growth of this industry. Although the current administration is more inclined towards state intervention, the regulations remain market-friendly.
The drawbacks, however, were the exchange controls imposed in 2019, which are expected to continue through 2023.
Regulatory trends for Fintech in 2023:
Consumer Protection: As of April 2023, PSPs must follow the same guidelines applicable to banks and financial institutions regarding the protection of users of financial services. While these regulations are not very cumbersome, they will require more resources and changes in the business structure.
Exchange controls: Restrictions on buying and transferring currency will remain. This means that PSPs will have to operate in local currency, and probably won’t be allowed to offer payments or investments abroad.
Cryptocurrencies: In May 2022, the Central Bank issued a regulation that prohibits local banks from selling or facilitating transactions with digital assets or cryptocurrencies. While digital wallets are not subject to this restriction, this may change in the future and restrictions may be imposed.
Furthermore, bills to regulate cryptocurrency investments do not seem to be a priority for Congress in 2023. However, there could be additional restrictions on investing in crytpo. Central bank regulations do not allow the use of credit cards to buy cryptocurrencies, and last year they also limited access to the exchange market to those who invested in crypto assets in the last 90 days.
B2B and acquisition: These services still have room for new players, but mostly when it comes to local payouts. International B2B payments will continue to be affected by currency controls.
Collective financing and loans to SMEs: The Central Bank and the National Securities Commission have shown a trend towards promoting loan platforms. In 2022, the Central Bank implemented a regulation on peer-to-peer lending platforms, and in January 2023 issued a new regulation on electronic platforms to finance small and medium-sized enterprises. This trend is expected to continue during the year.
