Argentina’s fintech market continued growing during the past year.
According to the latest surveys, the local ecosystem comprises approximately 383 companies. This increase represents a growth rate of 11.7% compared to the previous year.
In terms of payments, banking and digital payment accounts grew by approximately 21% from April 2024 to August 2024, reaching 228.5 million. There were 1.584 million immediate transfers in the second quarter of 2024 (84% year-on-year), 1.283 million of which originated or ended in a fintech account (86% year-on-year).
One of the regulatory novelties in the payment sector was the opening of the payment system for public transportation. Through Decree 698/24, the scope of the fare collection system was broadened to include a variety of payment methods that ensure interoperability across all modes of public transport all over the country. This includes surface and underground railways, passenger river transport, and cable car services. Prior to this, the “SUBE” card was the sole means of payment for these services. With the new regulation, however, the payment ecosystem has been expanded to accept additional payment methods, including fintech payments.
Regarding credit, according to the latest report from the Fintech Chamber, as of June 2024, it had been recorded that Argentina reached 6 million fintech credit holders. Additionally, out of the 34.1 million credits granted in the country, 18.8% were issued by fintech companies. In contrast, in December 2023, 37.2 million credits were granted, with 15% being issued by fintech companies.
On the cryptocurrency front, Argentina was ranked fifteenth in the world and second in Latin America in the latest Chainalysis Global Crypto Adoption Index. This segment is now undergoing a regulatory transition, among other things, with the enactment of Law No 27,739 that defined the concepts of “virtual asset” (activos virtuales or AV) and “virtual asset service providers” (proveedores de servicios de activos virtuales or PSAV), designated PSAVs as obligated entities before the Financial Information Unit (Unidad de Información Financiera or UIF), and created a PSAV Registry under the National Securities Exchange Commission (Comisión Nacional de Valores or CNV).
Looking ahead, the fintech sector is expected to continue growing and developing in the next 12 months, with an increase in the number of transactions, customers and businesses. This is mainly because of the recent change of administration in the federal government, which leans towards promoting citizens’ liberties and freedom of choice in the market, and also because of the good projections in terms of macroeconomic regularisation. At the same time, the regulatory framework is expected to continue evolving and adapting, particularly as the current authorities have actively encouraged public-private dialogue to support these developments.
In Argentina, the payments, crypto and lending verticals are the predominant business models.
In the payments vertical, emerging businesses are innovatively using technology and combining it with traditional businesses to speed up, expand and consolidate different payment mechanisms into a single platform, reducing the cost of payment processes.
In the crypto vertical, most crypto-asset exchanges operating in Argentina allow their users to acquire various types of cryptocurrencies and provide access to decentralised finance (DeFi) products.
In the crypto vertical, the Argentine Central Bank (el Banco Central de la República Argentina or BCRA) hinted at the possibility of banks regaining authorisation to trade cryptocurrencies, an authorisation that was revoked in 2023. This possibility would not only benefit banks, but also other fintechs that develop services for businesses, as they could become traditional banks’ crypto partners.
Moreover, the enterprise financial management vertical experienced significant growth, mainly driven by the emergence of solutions focused on financial management and business intelligence. The adoption of APIs and modular architectures has become a key trend.
In addition, there have been important new projects and start-ups in the regtech sector and in the provision of IT services to financial institutions and fintech companies, as well as in the use of blockchain technology.
There is no centralised regulatory framework governing the entire fintech ecosystem in Argentina. Instead, there are separate regulations scattered throughout the legal system, with some issues receiving more detailed regulation than others. In the following paragraphs, we review the main regulations that apply to the main fintech verticals.
Payments Verticals
The Credit Cards Law No 25,065 (CCL) applies not only to credit card payment systems but also to debit cards, “exclusive purchase cards” and any other payment system related to credit card operations. Financial Entities Law No 21,526 (FEL) applies to financial entities that provide payment services.
Before 2020, e-money systems were not expressly covered by any specific regulation within the Argentine domestic legal framework. The BCRA therefore issued a series of communications in 2020, aimed at regulating these businesses, which have been named “payment service providers that offer payment accounts” (proveedores de servicios de pago que ofrecen cuentas de pago or PSPCPs). Throughout 2021, 2022, 2023 and 2024, the BCRA issued further regulation for payment service providers (proveedores de servicios de pago or PSP), incorporating new roles, including, among others, initiation, acquiring, aggregation or sub-acquiring, and non-bank agencies that collect payment of taxes and/or services.
In addition, all these businesses will also be subject to the Civil and Commercial Code (CCC), Consumer Protection Law No 24,240 (CPL), Anti Money Landering Law No 25,246 (AMLL), Personal Data Protection Law No 25,326 (PDPL) and Digital Signature Law No 25,506 (DSL), among others.
Online Lending Businesses
Online lending businesses are mainly regulated by the CCC, as regular lending operations, in addition to the CPL, AMLL, PDPL and DSL.
Also, in 2020 the BCRA amended the rules regarding “non-financial credit providers” (proveedores no financieros de crédito or PNFC), making them mandatory for companies that, based on their last financial statements, granted credit in excess of ARS10 million and are not financial institutions.
In addition, in 2021 the BCRA regulated crowdlending businesses, which have been named “providers of credit services between individuals through platforms” (proveedores de servicios de créditos entre particulares a través de plataformas or PSCPP).
Equity crowdfunding is regulated by Entrepreneurial Capital Support Law No 27,349 (ECSL) and the CNV Resolution No 942/2022.
PSAV
PSAV businesses were regulated by the pre-existing general rules of the CCC, the CPL, the PDPL and the DSL, among others.
In 2024, the regulation of these businesses underwent a series of changes, among other things, through the enactment of Law No 27,739 that modified the AMLL, defined the concepts of AV and PSAV, designated the PSAVs as obligated entities before the UIF, and created a PSAV Registry under the CNV. In this context, the CNV and UIF issued Resolutions No 994/24 and 49/24, respectively, to regulate the provisions of Law No 27,739.
Regtech Businesses
Regtech businesses, the provision of computer services and innovations in the use of blockchain technology are regulated by the CCC, the DSL and Intellectual Property Law No 11,723 (IPL).
Public Offerings of Securities, Securities Markets and Exchanges
Capital Market Law No 26,831 (CML) regulates public offerings of securities, securities markets and exchanges, and intermediaries operating in such markets; it also covers the public offering of term contracts, futures and options, their markets, clearing houses and intermediaries.
Insurtech
Insurtech activities fall under the general rules of Insurance Law No 17,418 (IL).
Compensation models vary from business to business and vertical to vertical.
Businesses related to the payments vertical are usually compensated through transactional commissions that are ultimately borne by the affiliated businesses.
PSAVs frequently charge a fee for their services or include their earnings in the prices of the cryptocurrencies that can be purchased or sold on their platforms.
Businesses related to lending verticals are compensated through the interest rate charged to the borrower. It is important to mention that case law exists that limits the interest applicable to loans when such interest is deemed excessive.
In regtech undertakings and the provision of IT, as well as blockchain, and services to financial institutions and fintech companies, the compensation model is freely agreed between the parties (ranging from fixed amounts to variables per transaction).
While legacy players’ activity tends to be highly regulated and centralised mostly by the BCRA and the CNV, the regulation applicable to the fintech industry is more flexible and, as mentioned in 2.2 Regulatory Regime, there is no centralised regulatory framework governing the entire fintech ecosystem.
Nevertheless, the BCRA and the CNV do issue specific regulations on most of the verticals.
Unlike financial institutions, in some cases, prior authorisation from a state agency is not required to carry out or operate a fintech business.
There are also some distinctions from a tax perspective between transactions carried out by or through financial institutions and transactions carried out by or through fintech companies.
However, it is likely that such distinctions will gradually disappear.
There is no regulatory sandbox in Argentina.
However, in April 2022, the CNV launched an “Innovation Hub” aimed at those entities with service technology projects and/or innovative financial products that are linked to the capital market. This was to be the first step towards a possible CNV regulatory sandbox, which was ultimately not launched in 2023.
Also, the Argentine Fintech Chamber, in collaboration with the organisation Crecimiento, submitted a proposal to regulate the tokenisation of real-world assets (RWA) through a sandbox. Regulatory agencies (BCRA, CNV and UIF) remain in constant communication with the Chamber and the organisation regarding the proposal and have shown interest in advancing it.
Just as fintech regulations are scattered (as mentioned in 2.2 Regulatory Regime), so too is the jurisdiction of the regulators involved in the sector.
The BCRA
The BCRA has jurisdiction over entities engaged in regular intermediation between the supply and demand of financial resources (financial institutions) that fall within the scope of FEL. It is responsible for the regulation and supervision of monetary policy, credit policies and exchange control regulations. In addition, the BCRA has competence in payments and can expand its regulatory purview to other activities when deemed necessary, considering the volume of operations and their impact on credit and monetary policies.
The CNV
The CNV is responsible for implementing the CML. It has jurisdiction and oversight over various areas, including public offerings, brokerage entities, collective investment schemes, and securities exchanges and markets. Also, as mentioned in 2.2 Regulatory Regime, after the issuing of Law No 27,739, the CNV has jurisdiction over and oversees PSAVs.
The AAIP
Another relevant regulator is the Public Information Access Agency (Agencia de Acceso a la Información Pública or AAIP), which is the implementing authority of the PDPL.
The UIF
The UIF is the implementing authority of the AMLL.
The SSN
The Superintendence of Insurance (Superintendencia de Seguros de la Nación or SSN) has jurisdiction over the Insurance Law (IL), supervising the activities of producers, intermediaries, and insurance and reinsurance entities.
In Argentina, regulators do not issue “no-action” letters.
Financial institutions may outsource several functions to third-party vendors. However, this activity is regulated by the BCRA, which must be informed of such arrangements and which may carry out inspections of the premises and activities of the vendors. Despite this, the outsourcing of regulated functions does not release a financial institution from its obligations vis-à-vis its clients and the BCRA.
Fintech providers are under no specific legal obligation to act as gatekeepers.
At the same time, these entities fall under the general security and diligence obligations contained in the CCC, the CPL and the PDPL and must therefore ensure that their platforms operate adequately.
In addition, almost all fintech companies fall within the scope of the AMLL and are considered reporting entities under the regulations, subject to registration, know your customer (KYC) and suspicious transaction reporting obligations.
When the scope of the services provided by fintech companies is not well defined or fintech companies engage in activities that fall within the scope of the FEL or the CML, without the corresponding authorisations, or fail to comply with the regulations applicable to them by any of the regulatory agencies (BCRA, CNV, UIF), these authorities may initiate summary investigations and impose sanctions.
The sanctions applicable to individuals and legal entities that violate the provisions include warnings or notices, financial penalties, and temporary or permanent prohibitions to operate and disqualifications from serving as directors, administrators, trustees, members of supervisory boards, managers, compliance officers, or auditors, among others.
Additionally, if the investigation reveals the commission of crimes, the authorities may initiate the corresponding criminal actions.
The CCC
As mentioned in 2.2 Regulatory Regime, all fintech businesses fall under the provisions of the CCC, based on the similarities of their operations with nominated businesses provided for in the CCC. In addition, the general rules applicable to contracts and obligations under the CCC include the following topics:
The DSL
The DSL also applies since this regulation incorporates the concepts of digital documents, electronic signatures and digital signatures into the Argentine legal framework and establishes the terms of equivalence between these new concepts and the concepts of material documents and handwritten signatures.
The PDPL
The PDPL establishes several rights that companies must recognise regarding personal data holders. It also limits the way data can be collected and processed and mandates specific actions that companies must take before the competent authority.
The CPL
B2C business is subject to the CPL, which is designed to protect consumers as the weaker party in contractual relationships.
Regulation of Cybersecurity
There is no uniform set of rules regarding cybersecurity. Responsibility (including the indemnification regime) arising from the loss of information by fintech companies is governed, in principle, by the CCC, the CPL and the PDPL. Resolution 47/18 issued by the AAIP sets forth a series of recommended security measures aimed at facilitating compliance with the PDPL, including matters related to the collection of personal data, access control, control of changes, back-up and recovery, vulnerability management, information destruction, security incidents and development environments.
Likewise, among other specific rules, the BCRA has established cybersecurity standards for banks and PSPs and the CNV has submitted similar standards for PSAVs to public consultation.
Regulation of Software Development
Software development is generally regulated by the CCC and the IPL.
In addition to regulators, there are other relevant players actively involved in the sector. The most important fintech companies are grouped in the Argentine Fintech Chamber, and different bank associations represent the interests of financial institutions. There are also important organisations that promote the use of blockchain technology in its various forms.
In Argentina, there are several cases of industry participants offering unregulated products and services in conjunction with regulated products and services.
Many fintech companies offer unregulated products and services in conjunction with regulated products.
For example, Mercado Libre (an Argentine company that hosts the largest online commerce and payments ecosystem in Latin America) operates simultaneously from a single entity as a PSPCP, a PNFC and a marketplace. Also, Mercado Libre offers its clients the possibility to invest in funds administrated by different companies.
In addition, the BCRA has allowed financial institutions to participate in fintech companies and provide unregulated services through these companies.
Notwithstanding the above, it is worth mentioning that in May 2022 the BCRA prohibited financial institutions from carrying out or facilitating their clients to carry out operations with crypto-assets, which was also extended to PSPCPs in May 2023, banning these companies from carrying out and facilitating crypto-asset transactions for their clients. It is expected that this ban will be lifted in the medium term.
The reform of the AMLL that came into effect with the enactment of Law No 27,739 significantly impacted many fintech businesses, primarily by expanding the scope of reporting entities. Notably, the new reporting requirements now apply to all functions of PSP, PSAVs, and PNFCs.
Under the AMLL, these entities are required to fulfil several obligations, including registering with the UIF, identifying ultimate beneficial owners, demonstrating AML/CFT prevention procedures, appointing compliance officers, assessing the risk profile of each client, conducting due diligence, investigating the origin of funds flowing through their platforms, etc.
Regarding sanctions, the reform also introduced stricter penalties. The potential fines applicable in such proceedings have increased, and a new sanction allows for the disqualification of compliance officers in cases of non-compliance.
Argentina’s AML and sanctions framework follows the standards imposed by the Financial Action Task Force (FATF). As a member of the FATF since 2000, Argentina aligns its regulations with the organisation’s recommendations.
Argentina has not regulated reverse solicitation in general. However, CNV’s General Resolution No 1016/2024 regulates a safe harbour in reverse solicitation for securities.
Robo-adviser services can vary, ranging from financial advice to the possible assumption and automated management of the client’s investment portfolio based on their profile.
Robo-advisers are subject to the same regulations applicable to agents (brokers and investment managers) who are authorised to participate in exchanges and markets under the CML and CNV regulations.
Through its rules and general resolutions, the CNV regulates different figures that could use robo-advisers as an investment tool. Therefore, the use of a robo-adviser by an agent regulated by the CNV will be subject to the general rules applicable to such activity.
Legacy players continue to carry out their activities within the existing legal framework.
Although robo-advisers are gaining increasing popularity among investors, traditional players have not yet widely implemented the use of robo-adviser solutions.
In line with international guidelines, proper execution of client operations involves knowing the integral profile of the client (their risk profile as well as their financial expectations) and, on the basis of this information, providing advice in a reasonable manner that is personalised and consistent between the profile of the investor and the recommended trade.
When the online lender is a financial institution (which finances its loans with third-party deposits), the activity is heavily regulated by the BCRA in order to safeguard the funds of the general public. In this sense, there are restrictions on the amount of the loans that can be granted, the concentration among sectors, etc.
Where the online lender is a fintech company (in which case, the main source of funds is own capital and the securitisation of previous loans), its lending activity is subject to the PNFC regulations mentioned in 2.2 Regulatory Regime, which establish the need to register and report to the BCRA, as well as a series of information duties addressed to its clients, and certain obligations and conditions applicable to its operation, including how to calculate rates and impose additional charges, how their contracts should be redacted, and how to handle claims.
Fintech lenders tend to cater to the credit market, which is not usually covered by traditional lenders; ie, individuals with insufficient credit records.
Further, under Law No 27,739, PNFCs were included as reporting subjects. Therefore, in addition to the obligations that may apply to them under the scope of the BCRA, their activity is now supervised by the UIF (as was the case with financial institutions).
Fintech companies operating in the online credit market rely on various digital onboarding systems to identify and link with clients remotely, using digital documents and electronic signatures. However, these systems vary in terms of their security measures.
To reinforce customer identification and credit risk prediction, these companies are increasingly utilising the opportunity to collect, process, and cross-check customer information.
Recently, the BCRA and the UIF have also authorised banks to introduce a fully digital onboarding experience, which has led to the emergence of 100% digital financial entities.
Also, under Law No 27,739, PNFCs were included as reporting subjects, and must comply with a series of additional obligations in terms of identifying and monitoring their clients.
See 4.1 Differences in the Business or Regulation of Loans Provided to Different Entities and 4.4 Syndication of Fiat Currency Loans.
Although they are not a syndication of loans in the traditional sense, crowdlending platforms that currently operate in the local market (where loans are funded by several investors through the platform) could be regarded as a case of syndication of loans.
This activity is subject to the PSCPP regime mentioned in 2.2 Regulatory Regime, which establishes the need to register and report to the BCRA, as well as a series of information duties addressed to the platform’s clients, and certain obligations and conditions applicable to its operation, including the obligation to segregate the funds of its clients. Under certain conditions, PSCPPs may provide credit analysis, administration and collection management services.
Payment processors can use existing payment rails or create and implement new payment rails.
In January 2020, the BCRA imposed the PSPCP regime mentioned in 2.2 Regulatory Regime, which establishes the need to register and report to the BCRA, as well as a series of information duties addressed to the processor’s clients, and certain obligations and conditions applicable to its operation, including the obligation to segregate the funds of its clients and the obligation to refund client funds immediately upon request.
During 2020 and 2021, the BCRA promoted interoperability among different PSPCPs and among PSPCPs and banks. For this purpose, it created the so-called Uniform Virtual Code (CVU) to identify virtual accounts provided by PSPCPs and introduced standards for payments through rapid-response codes (QR codes) to make it possible for customers of one payment systems (a banking account or a virtual account provided by a PSPCP) to execute payments in shops added in a different payment system. At the very beginning, this was only available for payments with account balance.
In 2022, the BCRA established a regulatory framework for “payments initiation services providers” (proveedores de servicios de iniciación de pagos or PSI), requiring their registration, among other things. Likewise, the BCRA regulated “pull” transfers, empowering PSIs and PSPCPs to initiate payments. Technical specifications were finalised during 2023.
During 2022, the BCRA established special authentication and cybersecurity requirements for PSIs and PSPCPs, stipulated special responsibilities with regard to consumer protection for the companies involved in these businesses, and required the entire financial industry to implement certain anti-fraud measures. Many of these measures were strengthened and reinforced for all PSPs during 2023.
In 2023, the BCRA regulated new roles of PSPs and required these players to register. The roles are acquiring, aggregation or sub-acquiring, and non-bank agencies that collect payment of taxes and/or services.
In addition, in 2023 and 2024, the BCRA reinforced the interoperability of QR codes by extending them to credit cards.
Argentina has a series of exchange control regulations aimed at restricting the outflow of foreign currency.
In this sense, and broadly speaking, specific requirements are applicable to the inflow of funds, and the remittance of funds outside the country may, depending on each particular case, be restricted or subject to the prior authorisation of the BCRA.
As a regulatory novelty, at the end of 2023, the UIF issued Resolution No 1/2023, incorporating the Risk-Based Approach (RBA) into the monitoring of activities carried out by individuals or legal entities managing fund remittances, both within and outside the national territory. This approach requires remittance operators to identify, assess, and understand the risks associated with their activities, with the objective of adopting effective measures to manage, mitigate, and prevent crimes related to money laundering and terrorist financing.
In addition to the traditional exchanges and markets regulated by the CML and the CNV resolutions, there are emerging crowdfunding businesses, such as crowdfunding platforms connecting borrowers with lenders, and a significant number of crypto-asset exchanges.
As mentioned in 2.2 Regulatory Regime and 4.4 Syndication of Fiat Currency Loans, only equity crowdfunding and crowdlending have been expressly regulated. The remaining crowdfunding business models fall within the scope of the general provisions of the CCC, among other regulations.
With respect to crypto-asset exchanges, see 6.3 Impact of the Emergence of Cryptocurrency Exchanges.
See 6.1 Permissible Trading Platforms, 6.3 Impact of the Emergence of Cryptocurrency Exchanges and 10.3. Classification of Blockchain Assets.
As stated in 1.1. Evolution of the Fintech Market and 2.2. Regulatory Regime, PSAV businesses were regulated by the pre-existing general rules of the CCC, the CPL, the PDPL and the DSL, among others.
In 2024, the regulation of these businesses underwent a series of changes, among other things, through the enactment of Law No 27,739 that modified the AMLL, defined the concepts of AV and PSAV, designated the PSAVs as obligated entities before the UIF, and created a PSAV Registry under the CNV. In this context, the CNV and UIF issued Resolutions No 994/24 and 49/24, respectively, to regulate the provisions of Law No 27,739.
The figure of cryptocurrency exchange falls under the definition of PSAV, as PSAVs are considered to be “those natural or legal persons who, as a business, carry out one or more of the following activities: (…) (i) exchange between virtual assets and fiat currencies; (ii) exchange between one or more forms of virtual assets (…).”
However, despite providing greater clarity to the crypto landscape with the enactment of this law and the regulations issued by the CNV and the UIF, crypto-asset exchange platforms themselves are still not fully regulated. In this regard, the CNV has submitted to public consultation a rule with a greater number of obligations on PSAVs, which has not been definitively issued yet.
In Argentina, a standard for listing AVs has not yet been established.
Within the context of equity crowdfunding mentioned in 6.1 Permissible Trading Platforms, equity crowdfunding platforms must review and select the projects that will be offered for financing. For this purpose, a project selection guide must be prepared that must include objective, reasonable and non-discriminatory parameters applying measurable and consistent criteria. In addition, the platform must contemplate procedures to inhibit or cancel potentially fraudulent projects.
CNV rules set down the guidelines on how agents must execute orders placed by investors. In this respect, it is established that orders must be executed in the terms given by the clients and promptly entered into the order registration system of the market. Furthermore, the agents are required to have procedures in place that allow them to enter orders into the computer trading system of the interconnected market where the best market conditions are available to their clients, while the system used by the agent for the placement of orders must ensure the accurate registration of the order in the transaction ticket.
In addition, the CNV has specific rules for equity crowdfunding (see 6.1 Permissible Trading Platforms).
The rise of peer-to-peer (P2P) trading platforms significantly impacts both traditional financial institutions and fintech players. By reducing or entirely eliminating the role of intermediaries, these platforms lower commissions and make services more affordable. This creates competition for traditional banks and fintech companies offering digital exchange services, as P2P platforms operate with lower costs by avoiding traditional infrastructure.
A key challenge lies in the regulatory framework. In Argentina, P2P trading platforms are not specifically regulated, which poses risks for investors who have less protection due to the absence of a defined legal framework.
In Argentina, the practice of payment for order flow is not well regarded as this could affect market transparency and would be contrary to the duty of loyalty and diligence owed to investors.
In this regard, see 6.8. Market Integrity Principles.
The CML recognises the following principles:
Within this context, the following are considered contrary to market integrity:
The creation and use of these technologies in Argentina are regulated by the markets and exchanges that operate in the country as part of the self-regulating powers granted by the CML and CNV regulations.
CNV regulations specifically delegate to each market and exchange the drafting of the rules and registry applicable to market makers. CNV regulations only stipulate certain minimum requirements that the markets must follow when issuing the rules that regulate the activity. In 2023, the CNV issued Resolution 951/2023, which incorporated amendments to the regulation for market makers. Certain broker dealers are allowed to perform as market makers under certain conditions specified in the regulation. Each market must have a registry of its market makers. Market makers can only operate in this capacity for instruments they are authorised to handle by the respective market.
In Argentina, the regulations do not distinguish between funds that engage in these activities and dealers engaged in these activities.
There is no specific regulation regarding the creation of trading algorithms and other electronic trading tools. These kinds of tools are subject to the regulations set forth by each of the markets and exchanges that operate in the country as part of the self-regulating powers granted by the CML and CNV regulations, as well as the general rules of the CCC and the IPL.
In recent years, the insurance contracting process has become increasingly flexible and agile by taking advantage of the possibilities of digitalisation. For example, the SSN has allowed insurance companies to issue policies with digital signatures, and to receive instructions from their customers through digital platforms.
In addition, with the increased ability to obtain and process information about policyholders and the risks that fall on insured assets, insurance companies have been steadily improving their results.
Each of the different types of insurance (eg, life, property and casualty) has its specific regulation, as provided by the IL and SSN rules, mainly set up before the rise of insurtech.
See 2.2 Regulatory Regime, 2.7 Outsourcing of Regulated Functions and 2.11 Implications of Additional, Non-Financial Services Regulations.
Contractual terms regarding the provision of technology services are established on a case-by-case basis from the negotiations of the respective parties, since the outcome of such negotiations will vary on a case-by-case basis according to the negotiating strength of each party in a particular case.
Financial services firms try to impose the following contractual terms on technology providers, among others:
Many traditional players are using (or planning to use) blockchain technology in order to improve the processing, management and storage of information, as well as to automate the execution of certain processes, execute transnational payments, and tokenise and trade financial assets.
Research and exercises are currently being carried out between financial institutions and private sector providers.
There is no integral specific regulation regarding blockchain technology in Argentina. However, it is generally understood that the existing regulations in the DSL and the CCC regarding digital documents, and electronic and digital signatures, are sufficient to allow the use of blockchain technology, although, in practice, this should be reviewed on a case-by-case basis, while there may be in certain cases some pre-existing regulation that requires some requirement or process that is incompatible with this technology.
Without prejudice to the above, progress in blockchain regulation continues at a steady pace, and the outlook appears favourable. For example, in July 2024, through Decree 640/2024, the Argentine government approved the tokenisation of assets by updating the warrant regime governed by Law No 9643. This update allows for the electronic registration and blockchain-based trading of warrants. The decree includes authorisation for the use of electronic signatures to validate warrant transactions on the blockchain and eliminates the requirement for deposits to be officially registered as depositors and warrant issuers.
Moreover, as highlighted in 2.5 Regulatory Sandbox, the Argentine Fintech Chamber, in collaboration with the organisation Crecimiento, submitted a proposal to regulate the tokenisation of RWA through a sandbox initiative, a proposal that clearly aims to foster the development of blockchain-related projects.
Although Law No 27,739 introduced a definition of AVs, its primary focus is on establishing the regulatory framework for PSAVs. As a result, while the law provides some clarity on the concept of AVs, there is still no comprehensive regulation specifically governing crypto-assets.
In this context, pre-existing rules and generic standards will apply (see 2.2 Regulatory Regime and 2.11 Implications of Additional, Non-Financial Services Regulations), and the regulatory treatment of crypto-assets in Argentina will depend on their nature, with some being considered marketable securities and therefore subject to the provisions of the CML. This interpretation was provided by a communication posted on the CNV’s website in December 2017.
In Argentina there is no specific regulation applicable to issuers of blockchain assets. Although, as mentioned in 10.3 Classification of Blockchain Assets, where crypto-assets are security tokens that could be assimilated into marketable securities, the issuance of such assets would fall under the provisions of the CML.
See 6.3 Impact of the Emergence of Cryptocurrency Exchanges and 6.6 Rise of Peer-to-Peer Trading Platforms.
The provision of staking services relating to cryptocurrencies is not yet regulated in Argentina. In this context, pre-existing rules and generic standards will apply (please see 2.2 Regulatory Regime and 2.11 Implications of Additional, Non-Financial Services Regulations).
The provision of lending services relating to cryptocurrencies has no specific regulation in Argentina. In this context, it can be understood that the general rules of the regime applicable to PNFCs apply. See 2.2 Regulatory Regime and 4.1 Differences in the Business or Regulation of Fiat Currency Loans Provided to Different Entities.
There is no specific regulation yet in Argentina regarding cryptocurrency derivatives. In this context, pre-existing rules and generic standards will apply (see 2.2 Regulatory Regime and 2.11 Implications of Additional, Non-Financial Services Regulations).
Currently, there is no specific regulation for DeFi. In this context, pre-existing rules and generic standards will apply (see 2.2 Regulatory Regime and 2.11 Implications of Additional, Non-Financial Services Regulations).
In 2023, Banco Industrial (“BIND”) launched the first investment fund that includes investments in digital assets alongside instruments regulated by the CNV. The investment portfolio includes Bitcoin futures, and Argentine Depositary Certificates of Foreign Shares in tech companies and in fixed income assets.
Under Argentina’s Law No 27,739, virtual currencies are broadly encompassed within the category of “virtual assets”.
NFTs have not yet been subject to specific regulation in Argentina. In this context, pre-existing rules and generic standards will apply (see 2.2 Regulatory Regime, 2.11 Implications of Additional, Non-Financial Services Regulations and 10.3 Classification of Blockchain Assets).
As mentioned in 5.1. Payment Processors’ Use of Payment Rails, during 2022 the BCRA began to regulate PSI along with “pull” transfers, empowering PSIs and PSPCPs to initiate payments.
Draft legislation on personal data protection exists (which, to a certain extent, replicates the EU’s General Data Protection Regulation). This draft legislation incorporates the right to personal data portability, thereby allowing for the consolidation of open banking. However, little progress has been made towards enacting this legislation.
In recent years, both the BCRA and the UIF have incorporated some provisions allowing banks to share their clients’ information at their request within the framework of digital onboarding processes. However, these rules have not yet been fully implemented and adopted in practice by the industry and the absence of sufficient regulations prevents open banking’s full deployment.
In practice, some fintech providers have implemented platforms that allow clients to access all their bank account information in different entities through individual agreements with the different entities involved.
In 2024, during the Argentina Fintech Forum, the three regulatory bodies (BCRA, CNV, UIF) announced that Open Finance is on their agenda. In this regard, the BCRA recently communicated that it is working on a project to implement Open Finance and has also developed and made available the API (Application Programing Interface) of Principal Variables, the first in a series that will form a catalog providing efficient access to the information produced by the institution. Through these APIs, developers will be able to create programs or automate frequent analyses.
There is general agreement that this process could expose clients’ personal data due to the increase in information flow. It is in this context that a full open banking exercise will require that the protection of personal data is strengthened and reviewed.
Also, market players are concerned about compensation models, cybersecurity measures and how liability would be allocated among the different parties in the event of a breach.
The elements of fraud in the context of financial services and fintech are similar to those applicable to traditional financial institutions. The main law governing and punishing perpetrators of crimes related to fraud is the Criminal Code of Argentina (the “Criminal Code”), which applies to the entire country. Fraud can also give rise to civil liability for the involved companies. Fraud and scams are punished by law. Cyber fraud was incorporated into the Criminal Code in 2008. Cyber fraud punishes the crime of altering an online system with the purpose of defrauding someone. Fraud involves deception that causes financial loss to the victim.
Regulators are most closely focused on fraud involving the impersonation of users of financial services in the payments sector. The BCRA issued regulation related to the enrolment of accounts and cards in wallets, including security measures and consent of users. In 2023, the BCRA issued regulation on cybersecurity, providing for requirements for the onboarding of users, etc. See 2.11 Implications of Additional, Non-Financial Services Regulations.
See 2.11 Implications of Additional, Non-Financial Services Regulations. Additionally, if a fintech company fails to comply with the security measures required by the BCRA or CNV, such as implementing robust authentication systems, it could be held responsible for the losses suffered by customers due to security vulnerabilities.
Av. Córdoba 315, 1st floor.
C1054AAC
CABA
Argentina
+54 11 4313 6644/6655
+54 11 4313 6644/6655
info@gpgadvisorypartners.com www.gpgadvisorypartners.comOverview
In Argentina, 2024 marked the start of a new administration grappling with economic, political, and social challenges. Amid significant policy shifts, the Argentine fintech industry demonstrated resilience, continuing its robust growth trajectory. As recession and high inflation subside, 2025 presents new opportunities for the sector.
As per the latest Finnovista survey, the fintech ecosystem now includes 383 firms, with a balanced concentration in key verticals. Payments and remittances lead with 16.9% of the market, followed by lending (15.7%) and enterprise financial management (15.4%). Crypto saw notable expansion, doubling from 20 firms in 2023 to 36 in 2024, accounting for 9.4% of the market. Other verticals, including technological infrastructure for banks, wealth management, and insurtech, held steady at 11.7%, 8.9%, and 8.6%, respectively.
Despite inflation dropping significantly from 211.4% in 2023 to 117.8% in 2024, demand for yield-generating fintech services remained high. Analysts predict further inflation reduction to approximately 26.2% in 2025, potentially shifting consumer preferences from defensive investments to more profitable instruments. The fintech industry, boosted by market-friendly regulations, offers easy access to investment options for customers so is poised to capitalise on this trend.
According to the Retail Payments Report published by the Argentine Central Bank (BCRA), mutual fund investments via fintech accounts surged, reaching ARS3.2 trillion in October 2024, a 430% year-over-year increase. By November 2024, fintech accounts held 5.2% of private sector deposits, up from 2.58% the previous year, reflecting growing public trust and fintech’s role in driving financial inclusion.
In the payments vertical, push transfers doubled year-over-year by November 2024, out of which three-quarters involved fintech accounts. The sector’s strength and interoperability were further highlighted as nearly half of Argentine fintech start-ups expanded internationally.
Tensions persisted between banks and fintechs over the interoperable transfer system linking bank and virtual accounts, as fintechs continued to attract deposits with interest-bearing accounts and investment options. QR payment interoperability also saw rapid growth, with transactions increasing by 133.4% year-over-year. As per the Retail Payments Report published by the BCRA, out of 51.9 million accounts registered with the BCRA by November 2024, 14.5 million were held with Payment Services Providers, indicating fintech’s growing influence.
President Javier Milei’s administration introduced market-friendly reforms, creating opportunities for fintech. Executive Decree 698/2024 ended the state monopoly on the SUBE (a prepaid card managed by state-owned bank, Banco de la Nación Argentina) public transport payment system, enabling competition and integration of new payment methods such as debit, credit, NFC, and QR codes.
Additionally, a fiscal amnesty programme injected USD32.15 billion into the banking system, boosting foreign currency deposits and transfers. New regulations were enacted allowing businesses to display prices in US dollars and pesos, permitting cardholders to make payments with debit cards, both in pesos and dollars, through QR code scanning.
In the context of the fourth country evaluation carried out in 2024 by the FATF, Congress passed Law No 27,739, aligning local rules with international anti-money laundering (AML) standards. The law established a registry for virtual asset service providers and designated payment service providers (PSPs) and virtual asset service providers (VASPs) as reporting entities. In turn, the Financial Information Unit (Unidad de Información Financiera or UIF) issued complementary regulations that directly impacted PSPs and VASPs, which were included as “reporting entities” under the reformed AML Law.
Drastic monetary policy changes and improved economic conditions fuelled a 60.5% real-term increase in private sector credit in 2024. As a percentage of GDP, domestic credit rose from 4.4% in 2023 to 6.9%, still below the global average of 50%, indicating significant growth potential in lending and other fintech verticals.
2025 promises further exploration in QR payment interoperability, blockchain, tokenisation, and open finance. Supported by a favourable regulatory environment and high fintech adoption, Argentina is positioned for sustained digital transformation.
In the following sections, we will cover the regulatory measures taken by the Argentinian authorities in 2024 and evaluate foreseeable measures that may be implemented shortly. Additionally, we will attempt to decode how the Argentinian fintech industry may evolve through 2025.
Payments Vertical
Interoperability of QR codes
Continuing with the widespread adoption and growth of electronic payments not only in Argentina but worldwide, and the measures already implemented by the BCRA during 2023, in April 2024, the interoperability of QR codes was extended for credit card payments as it was primarily implemented for payment transactions with money deposited in digital wallet accounts or with debit cards. Based on this, merchants must accept credit card payments from any digital wallet, regardless of who the provider of the QR code is. In addition, acquirers and aggregators may not discriminate in fees and crediting terms according to the wallet used and must offer a single QR that accepts all payment instruments.
In May 2024, the BCRA introduced additional amendments, establishing that all measures applicable for credit card payment through QR code scanning would also be applied to prepaid card payments. Besides, liability for credit card payment fraud was assigned to the entity providing the interoperable digital wallet, except in certain specific cases and established the maximum commission that digital wallets can charge credit card issuers for each processed transaction.
Digital tips
Argentina leads Latin America in the use of digital accounts and transfers, with 95% of the population using payment apps on their mobile devices.
In line with this considerable expansion in the use of digital money in August 2024 the Executive Branch, through Decree No 731/2024, stipulated that gastronomic, hospitality, and related sectors, fuel dispensers, home deliveries, and other activities where it is customary to give or receive tips must provide electronic means for workers to receive them, excepting certain commercial activities from this obligation.
Electronic payments for public transportation
In November 2024, the BCRA authorised financial institutions and PSPs to participate in the payment chain with electronic funds transfers initiated with QR codes for public transportation to the extent they comply with certain regulations.
Although the prior payment system is not yet available, public transportation users in the City of Buenos Aires have the possibility of paying for tickets with credit, debit or prepaid cards. The first data collected in December 2024 showed that 20% of tickets during this month were paid through one of those payment methods.
National Payment System
In December 2024, the BCRA introduced changes to the National Payment System to incentivise the use of prepaid cards among consumers following the growth of this payment method – 97.3% in November 2024 compared with November 2023 according to the BCRA’s Retail Payments Report. These changes implied the reduction of the accreditation periods to merchants from around 18 business days to two business days.
In January 2025, the BCRA established that from April 2025 cardholders will be able to make debit card payments, both in pesos and in dollars, through QR code scanning, stipulating that interoperable digital wallets must enable these payments; however, it will be optional for merchants to accept dollar payments. Also, it was determined that regulations regarding liability for fraud and commission limits on transactions applicable to credit card payments will be extended to debit card payments.
Scheduled DEBIN
From 28 February 2025, users will be able to pay for the acquisitions of goods and services through Scheduled DEBIN and, according to this newly introduced variant of Recurring DEBIN, those acquisitions will be paid in fixed installments, in pesos or dollars, debited from the users’ account, requiring prior authorisation, which will be granted only once upon subscribing to this instant transfer mechanism.
Open Finance
The concept of open finance evolved from open banking, which refers to the creation of regulatory frameworks that facilitate data sharing between banking institutions and the payment system. This initiative was expanded to include all entities within the financial system, aiming to incorporate non-financial entities and extend its scope to other financial products – such as loans from non-financial credit providers, mortgages, credit cards, investment funds, and insurance, among others.
According to a survey by Finnovista, there is notable collaboration arising between fintechs and financial entities, with 53.4% of banks already collaborating, 22.4% open to it and 21.3% looking to collaborate, or in the process of collaborating, with fintechs, driven by the understanding that fintechs can serve as agile distributors of financial products in areas where they have less presence.
Embedded finance and open finance involve the secure exchange of banking data between financial institutions and interoperability via application programming interfaces (APIs). This free flow of information theoretically allows better services to be provided to users as it allows each financial service provider already contractually linked to a user to act as a trusted third party when that user intends to register with a new provider (whereby the new provider can request validation and information from the already linked provider). Currently, 63% of fintechs in the country have already implemented certain open finance traits and APIs in their processes.
Such is the impact of APIs on the financial ecosystem that the BCRA itself made available, from April 2024, a series of APIs to access and share information on “debtors’ registry”, “reported checks”, “exchange market statistics”, and “monetary statistics”, with plans to implement additional APIs in the future.
However, the implementation of open finance can also entail various risks for consumers, particularly regarding the management and protection of complex data. Mismanagement of such complex data could result in cybersecurity threats and data breaches. In order to deter those risks, clear guidelines and standards for the protection of personal and nonpersonal data should be established. For open finance to reach its full potential, information should be shareable, and for this to happen, certain conditions must be met: (i) consent from the data owner; or (ii) the creation of a legal obligation requiring data providers to share this information (compliance with such a legal obligation would serve as an exception, allowing the omission of prior consent); and (iii) a legitimate interest on the part of both the transferor and transferee in processing this information, ensuring that it does not result in consumer harm but rather provides a benefit. For the system to function efficiently, the declaration of legitimate interest would need to be established generally through legislation.
In this respect, the Agency for Access to Public Information had been working on a legislative project on personal data protection. In June 2023, a draft bill proposed changes to Argentina’s personal data protection and privacy regulated principally by Law No 25,326, but no progress has been made. Argentine regulations require that anyone processing personal data must obtain prior, express, informed, and written consent from the data subjects, which implies a challenge for the implementation of an open finance regime.
Currently, in Argentina, there is no single, comprehensive regulation on open finance – nor has one been promoted. Instead, the main driving force has been initiatives within the financial ecosystem that encourage collaboration among stakeholders. The BCRA’s Debtors’ Registry is a crucial source of information, as it provides a consolidated report on both current and historical debts (covering the past 24 months based on data provided by credit-granting entities). Similarly, the BCRA’s “Transparency Regime” plays a significant role by offering consumers essential information to make more efficient financial product contracting decisions.
Crypto-Assets
The economic challenges in Argentina, including high inflation, currency devaluation, and strict foreign exchange controls, have driven many Argentine people to turn to crypto-assets, particularly stablecoins, as an alternative store of value.
While there is no single regulatory framework for crypto-assets, various public agencies, such as the UIF, the National Securities Commission (the CNV, for its Spanish acronym) and the Argentine Revenue Service, have issued regulations on the sector. Consequently, there are no explicit prohibitions on holding, purchasing, exchanging, or offering custody services for crypto-assets.
However, the BCRA has been tightening regulations to discourage crypto transactions, such as restricting the acquisition of crypto-assets in foreign currency via cards issued in Argentina, and classifying them as “"liquid external assets” with a USD100,000 limit for accessing the foreign exchange market in 2020. In 2022, it prohibited financial institutions from facilitating crypto transactions, a restriction that was extended to PSPs in 2023.
With the recent election of Javier Milei as president, there has been a noticeable shift in the political stance towards crypto-assets, with early signs of deregulation and a relaxation of previous restrictions. In 2024, the government has started to implement measures aimed at fostering innovation in the crypto-asset sector, signalling a more favourable regulatory environment for digital assets. This evolving regulatory environment continues to shape the fintech sector, creating both challenges and opportunities for industry players navigating Argentina’s fintech ecosystem.
VASP Registry
In March 2024, the CNV, laid down the prerequisites and conditions for the registration of VASP. The CNV provides that individuals and legal entities residing or incorporated in Argentina, before being able to carry out activities or transactions related to virtual asset services, must register in the VASP Registry.
Such obligation extends to individuals and legal entities residing or incorporated abroad provided they engage in one of the following activities:
In October 2024, the CNV called on the general market to submit opinions and proposals on a draft regulation applicable to VASPs. Upon the completion of the procedure for the participative elaboration of rules, on 12 March 2025, the CNV issued a general resolution regulating the operation of PSAVs, replacing the previous provisions. The resolution contains new elements and details not included in the former Registry of VASPs, such as VASP categories, segregation and custody of virtual assets, minimum net worth requirements based on activity, cybersecurity requirements, among others.
The resolution indicates that VASPs established abroad must register in Argentina in accordance with Section 118 of the Argentine Companies Act, under one of the recognised forms (eg, branch, office, or another form of permanent establishment). Notably, the resolution specifies entities prohibited from operating as VASPs, including those already regulated under the Capital Markets Law and individuals subject to restrictions on VASP activities.
VASPs are classified into five categories, with specific net worth requirements depending on their activities. Categories range from exchanges between virtual assets and legal tender to the provision of financial services related to virtual assets. VASPs must also maintain strict separation between their client and business funds. Additionally, each VASP must appoint a public relations officer to handle client inquiries and complaints. VASPs must also disclose on their websites and social media the risks associated with virtual assets, clarifying that they are not covered by the Argentine Capital Markets Law, unless they qualify as negotiable securities.
VASPs may only offer their clients virtual assets containing the general information in the “White Paper” and/or informative pieces with relevant information on the issuer and the project, which must be published on their website and/or mobile application, and must be easily accessible and available at all times in the national language or in English.
In addition, VASPs will have to maintain a clear separation between the funds coming from or applied to operations of their clients and the funds coming from or applied to operations on their own account.
Furthermore, VASPs must submit monthly and annual reports to CNV, maintain compliance officers, implement security policies, and follow detailed procedures for handling transactions.
Capital contributions in virtual assets
The Public Registry of Commerce of the City of Buenos Aires introduced the possibility of making digital asset contributions to companies, subject to specific conditions. These conditions include:
Futures contracts tied to Bitcoin
In April 2024, Matba Rofex (the Argentine exchange where financial and agricultural futures and options are traded) concluded the initial phase for futures contracts based on the Bitcoin Matba Rofex Index. This development followed the CNV’s approval of the regulation, which had previously allowed trading of derivatives tied to Bitcoin and settled in Argentine pesos, without the need for physical delivery of the underlying asset. As a result, starting on 22 April 2024, these Bitcoin-based futures contracts will be available for trading by any investor, removing the initial “qualified investor” requirement set during the launch phase.
The Matba Rofex Bitcoin Index aggregates Bitcoin price data from multiple providers, facilitating the trading of the BTC/ARS pair and enabling Argentine pesos transfers. Providers must hold a valid contract with a PSP registered with the BCRA. This regulatory evolution allows qualified investors, as well as the broader public, to access Bitcoin price variations through regulated derivative products, contributing to the growth of the local fintech ecosystem.
Tokenisation
One of the most talked-about topics in technological innovation is the so-called tokenisation of illiquid real-world assets. Tokens are digital representations of physical or digital objects. There were two legislative projects aimed at regulating tokenisation that recently lost parliamentary status.
However, Argentina’s regulatory landscape appears to be adapting to this trend, with Decree No 640/2024 marking the initial step. This decree mandates the tokenisation of deposit certificates and warrants. This innovation enhances and/or increases the liquidity of certain assets perceived as “illiquid” – such as commodities – by facilitating their transactions and reducing operational costs. Thus, the primary goal of this deregulation is to promote credit in the private sector by enabling the use of these instruments for a wide range of products, expanding their application beyond traditional agricultural use to industries such as mining, energy, and others.
Following its 2023 study about the tokenisation of real assets, the Argentine Fintech Chamber has proposed the creation of a multi-agency regulatory sandbox, involving the CNV, the UIF, and the BCRA. These entities will play a crucial role in both deregulating the rules that limit tokenisation development and co-regulating with ecosystem participants through a collaborative rule-making process. This work is a call to take advantage of a unique opportunity for the development and growth of new business models.
On the other hand, security tokens, which serve as or represent tradable securities, may fall under the classification of securities according to Argentine regulations. Consequently, they could require prior authorisation from the CNV before issuance in case of a public offering. Participation in a public offering of securities without the necessary approval from the CNV exposes individuals to administrative penalties.
In September 2024, the CNV introduced new regulations allowing “private offerings” of marketable securities without prior authorisation. In this context, the CNV adopted a “safe harbour” approach, providing legal certainty to securities issuances that may be classified as private offerings. This regulation presents an interesting opportunity for the issuance and development of security tokens.
Considering the substantial risks involved in the issuance and promotion of tokens in Argentina, it is crucial to create a tailored regulatory framework that properly addresses the distinct advantages and challenges of tokenisation.
Anti-money laundering reform
Since 2014, reporting entities in Argentina have been required to submit monthly reports to the UIF detailing all transactions involving digital currencies, along with the corresponding risk profile for each transaction.
In 2024, the UIF recognised VASPs registered with the CNV as reporting parties subject to legal anti-money laundering obligations. The UIF has introduced a risk-based framework that requires these entities to implement policies, procedures, and controls to identify, assess, monitor, manage, and mitigate the risks they face.
Moreover, on 19 December 2024, the UIF set forth minimum requirements for risk prevention in anti-money laundering applicable to issuers of cards, operators and providers of payment and/or collection services, and non-financial credit providers.
Conclusion
As we move into 2025, Argentina’s fintech sector stands at the forefront of digital transformation, continuing to shape the financial landscape in technology and regulation. With the growing adoption of digital payments, interoperability of QR codes, digital tips and the expansion of electronic transactions in public transportation, Argentina is strengthening its position as a regional leader in fintech innovation.
The increasing collaboration between fintechs and traditional financial institutions, combined with the introduction of new payment methods, indicates a clear shift towards more flexible and accessible financial services. At the same time, the evolving landscape of tokenisation and the regulatory advancements surrounding virtual assets are just the beginning of a wave of regulatory developments that will shape the future of crypto in Argentina.
Looking ahead, the Argentine fintech industry is poised to thrive in 2025, leveraging its strong foundation of innovation and regulatory agility. With an eye on global trends, Argentina is well-positioned to provide financial access for its population and to continue its transformative journey.
Av. Corrientes 420
C1043AAR
Buenos Aires
Argentina
+54 11 4321 7500
cto@bomchil.com www.bomchil.com/