Central Bank of Argentina Issues New Compliance Rules for Digital Wallets

The Central Bank of Argentina has issued a new set of rules for operators of digital wallets in the country. Customers of companies like Uala, a wallet popular in Argentina, will now be qualified as financial users, having new protections similar to those offered by banks and other financial institutions.

Central Bank of Argentina Strengthens Digital Wallet Supervision

The rise of digital money and crypto in Argentina is causing regulators to pay attention. The Central Bank of Argentina recently issued a set of rules to heighten the level of protection users of popular digital wallets in the country receive. Customers of Uala and other digital wallet providers will now have to be treated as financial users, having protections close to those offered to bank users.

This means that these entities will have to name customer support representatives and solve common problems in less than ten days. Also, the digital wallet companies will have to adapt their terms of service and conditions to fulfill requirements of the central bank regarding financial contracts.

In the same way, the companies will have to provide an easy way for users to revoke services already accepted by these products, and also to close their accounts with these companies in an easy way, a common issue cited by users.

Compliance and Sanctions

While big players in the business like Mercado Pago and other large wallets already comply with these measures, this will likely drive compliance costs higher for small wallet providers, who will now have to deliver compliance reports signed by professionals of the Economic Science college.

According to Tavarone, Rovelli, Salim & Miani, a national law firm, the application of these rules will vary depending on several factors. It stated:

[The plans] will be prepared following the model that is established in due time and must verify compliance with the regulations issued by the Central Bank of Argentina that are applicable 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 users with visual or hearing impairments. This might include a redesign of apps that can mean elevated compliance costs.

The digital wallet companies will have a period of 180 days to make the required adjustments to comply with 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 rules that digital wallet companies will have to follow in Argentina? Tell us in the comments section below.

Related Posts

Coinbase expands to Australia with focus on institutions in ‘months to come’

With an expanded Australian offering, Coinbase’s VP of international and business development said the exchange faced “tough questions” from regulators and policymakers about its services. United States-based…

Musk’s deal for Twitter looks set to go with original $44B price tag

Twitter appears ready to move forward with the deal for Elon Musk to buy Twitter, announcing in an Oct. 4 post they intend to close the transaction…

‘New frontier’ of crypto laundering involves cross-chain bridges and DEXs: Elliptic

Curve, Uniswap, 1inch, and the Ren bridge were the top platforms of choice for laundering illicit crypto, according to Elliptic. New research from blockchain analytics and crypto…

Bitwise launches Web3 ETF for institutional and retail investors

The ETF tracks the Bitwise Web3 Equities Index, with over 85% exposure to companies in Web3. Bitwise Asset Management announced on Oct. 3 a new exchange-traded fund…

Billionaire Hedge Fund Founder Ray Dalio Steps Down as Co-CIO of Bridgewater Associates

Billionaire hedge fund founder Ray Dalio has stepped down as chief executive of Bridgewater Associates, according to a transfer of voting rights on September 30. Bridgewater’s co-chief…

Oryen (ORY) Huge Opportunity To Become Bigger Than Elrond (EGLD), Quant (QNT), And OKB (OKB)

The cryptocurrency market is heating up and Oryen (ORY) is positioning itself as a significant player. The project has a lot of potential to become bigger than…

Generated by Feedzy