A new set of guidelines has been issued by the Central Bank of Argentina for digital wallet operators in Argentina. Uala is a popular wallet in Argentina. Customers will be able to qualify as financial users and have new protections, similar to the ones offered by banks.
The Central Bank of Argentina strengthens digital wallet supervision
Regulators are paying attention to the rise in digital currency and crypto currencies in Argentina. A set of guidelines was recently published by the Central Bank of Argentina to increase protection for users of the popular digital wallets. Uala customers and all other providers of digital wallets will be considered financial users. They will receive protections similar to that offered to bank users.
These companies will need to identify customer support representatives in order to solve common problems within a time limit of ten days. Digital wallets will also need to adjust their terms of service to comply with the requirements of central banks regarding financial contracts.
Users will also be able to cancel services that they have already received from these companies and close accounts. This is a frequent issue raised by users.
Compliance and Sanctions
Mercado Palo and large players such as Mercado Pago have already complied with the measures. However, compliance costs will be higher for smaller wallet providers who will need to submit compliance reports that were signed by experts from 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. The following was stated:
[The plans]The model will be ready in accordance with established timeframes. It must also verify compliance to regulations of the Central Bank of Argentina applicable depending on the payment service provider.
A new rule is accessibility. This means that companies must make changes to their services in order to be accessible for people with hearing and visual impairments. It might mean a redesigning of apps, which can lead to higher compliance costs.
There will be 180 days for digital wallet businesses to adapt to the requirements. In addition, the Central Bank of Argentina has the right to impose sanctions on those who do not comply.
Let us know your thoughts on the new regulations that Argentina will impose upon digital wallet providers. Leave your comments below.
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