FinTech boom in Latin America requires regulation

Although Latin America was a little late in its FinTech development, now the industry is showing a phenomenal growth in the region. The sector has recently received appreciation, and now it continues to rise.

Demand for fintech solutions is rising. Small financial institutions across the region face the need for being digitalized, and financial technologies serve for support. Moreover, many SME are seeking for digital lending services in order to support their projects and deal with the crisis.

The expansion of FinTech in Latin America means that regulators are under great pressure to adopt legislation for the new industry that would protect investors and consumers. Nevertheless, the regional legislation should be cautious to not to prevent the innovations from developing. Still startups should remain careful amidst stricter regulations.

Mexico is currently the leader as regards blockchain industry regulation. The legislation project includes all FinTech activities such as wallets, crowdfunding, crypto transactions and open banking. Besides, its legislation supervises financial entities that use FinTech, and ensures the regulatory “sandbox” for both licensed and non-licensed companies.