The Central Bank of Argentina has issued new regulations for operators of digital wallets in the country. Customers of companies like Uala, a popular wallet in Argentina, will now qualify as financial users with new protections similar to those offered by banks and other financial institutions.
Argentina’s central bank tightens regulation of digital wallets
The rise of digital currency and crypto in Argentina is getting regulators to pay attention. The Central Bank of Argentina has recently issued regulations to increase the level of protection received by users of popular digital wallets in the country. Customers of Uwala and other digital wallet providers must now be treated as financial users, with the same protections offered to bank users.
This means that these entities must designate customer support representatives and solve common problems in less than ten days. Also, digital wallet companies need to adjust their terms and conditions to meet the central bank’s requirements regarding financial terms.
Similarly, the companies should provide an easy way for users to cancel the services received through these products and also to close their accounts with these companies in an easy way.
Compliance and sanctions
While big players in the business, such as Mercado Pago and other large wallets, comply with these measures, this may increase compliance costs for smaller wallet providers, who now have to submit compliance reports signed by experts at the College of Economic Sciences.
According to Tavarone, Rovelli, Salim and Miani, the National Institute of Law, the application of these rules varies for several reasons. He explained.
[The plans] It will be prepared following the model established at the time and must ensure compliance with the regulations issued by the Central Bank of Argentina, which apply according to the type of payment service provider in question.
Another new requirement has to do with accessibility, and how these companies need to change the structure of their services to accommodate visually and hearing impaired users. This may involve the redesign of applications, which may imply higher compliance costs.
Digital wallet companies will have 180 days to make the necessary adjustments to meet the new requirements, and the Central Bank of Argentina will have the option of establishing sanctions in cases of non-compliance.
What do you think about the new regulations that digital wallet companies will have to follow in Argentina? Tell us in the comments section below.
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