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.