logo

Fintech in Latin America boom calls for regulation

Fintech in Latin America boom calls for regulation

Though FinTech in Latin America is a bit late to the party, yet it has been growing phenomenally. Recently, the sector was given a valuation of over $150, and it keeps on expanding year-on-year.

Meanwhile, the long-term impact of the prevailing pandemic is yet to be realized; however, the demand for fintech solutions would eventually increase.

Across the region, smaller financial institutions are facing the pressure to shift to digitization, and fintech is being pursued as help in this regard. Moreover, many SMEs are looking for digital loan services to support themselves to cope with this crisis.

The exponential expansion of Fintech in Latin America tends to imply that the regulators in Latin America are under immense pressure to pass legislation that would address the muddy waters of the fintech activity and assuring investors and consumers.

Nevertheless, the regulations across the region must be cautious as not to rescind innovation, whilst startups ought to figure out how they can be vigilant in an increasingly regulated environment.

Regulatory impact of Fintech in Latin America

Currently, Mexico is leading the Fintech regulations in South America; the credit goes to its 2018 Fintech Law. The law comprises FinTech activities such as virtual wallets, crowd-funding, cryptocurrency transactions, and open banking.

Additionally, Mexico has such financial laws that tend to regulate financial bodies in their execution while employing FinTech. This law also provides a regulatory sandbox for both the licensed and the non-licensed companies.

Johnson Go

Johnson Go

Blockchain enthusiast, project management specialist, writer and crypto investor. JG deals mostly with problems and solutions of crypto projects and provides market outlook for investments. He contributes his analytical skills to projects.

Related News

Hot Stories

Ethereum price analysis: ETH fails to break the $1,300 level after a period of consolidation
ChainLink price analysis: LINK obtains fully bearish momentum at $7.3
Electroneum Price Prediction 2023-2031: Is ETN a Good Investment?
Bitcoin price analysis: Bitcoin reclaims $17,000 as bearish divergence looms
ByBit is reducing its workforce again as more layoffs plague the industry

Follow Us

Industry News

Are crypto miners losing faith in Bitcoin? Over 10K BTC dumped
Coin Signals ordered to return funds to victims
Weekly crypto price analysis 4th Dec: BTC, ETH, XRP, BNB, ADA, DOGE
DeFi predictions 2023: How will crypto and blockchain evolve? 
Avalanche partners with Alibaba Cloud to launch new validators

Add Your Heading Text Here