The Central Bank of Argentina has released a new set of rules for operators of digital wallets in the country. Customers of companies like Uala, a popular wallet in Argentina, will now qualify as financial users, enjoying new protections similar to those offered by banks and other financial institutions.
The Central Bank of Argentina strengthens the monitoring of the digital wallet
The rise of digital currency and crypto in Argentina is forcing regulators to pay attention. The Central Bank of Argentina recently published a set of rules to strengthen the level of protection for users of popular digital wallets in the country. Customers of Uala and other digital wallet providers will now have to be treated as financial users, enjoying protections akin to those offered to bank users.
This means that these entities will have to appoint customer support representatives and resolve common issues in less than ten days. Additionally, digital wallet companies will need to adapt their terms of service and terms to meet central bank requirements for financial contracts.
Similarly, companies will need to provide users with an easy way to revoke services already accepted by these products, as well as easily terminate their accounts with these companies, a problem commonly cited by users.
Compliance and Penalties
While large industry players like Mercado Pago and other large wallets are already complying with these measures, this will likely lead to increased compliance costs for smaller wallet providers, who will now be required to provide compliance reports signed by professionals from the College of Economics.
According to Tavarone, Rovelli, Salim & Miani, a national law firm, the application of these rules will vary depending on several factors. He stated:
[The plans] will be prepared according to the model established in due time and must verify compliance with the regulations issued by the Central Bank of Argentina applicable according to the type of payment service provider in question.
Another new requirement relates to accessibility and how these companies must modify the structure of their services to accommodate visually or hearing impaired users. This can include redesigning applications which can result in high compliance costs.
Digital wallet companies will have 180 days to make the necessary adjustments to comply with the new requirements, and the Central Bank of Argentina will have the option to establish penalties for non-compliance.
What do you think of the new rules that digital wallet companies will have to follow in Argentina? Tell us in the comments section below.
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