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RegTech is composed of the words “regulatory” and “technology”. It is a collective term for the application of modern technologies, to get the increasing regulation in the banking- and financial sector under control both from an IT and a legal standpoint.
Introduction
Attitude of the country towards RegTech-services
RegTech is a segment which is still in an early stage in Argentina but has great perspectives of growth in upcoming future considering the high demand of new technological solutions by banks and FinTech companies regarding cybersecurity, identity verification and compliance with data protection regulations.
Legal affairs
Obligations and requirements to provide RegTech-services
In Argentina, there is no specific regulation which obliges RegTech companies to obtain a special license to provide their services.
Additional comments regarding the legal situation for RegTech-services or what RegTech’s must be aware of in this business area
Although in Argentina there are no specific regulations applicable to the activities of RegTech companies, it is important to refer to certain provisions contained in the Data Protection Law 25,326, which imposes data controllers to adopt adequate security measures to avoid unauthorised access to data subjects’ personal data. This is reinforced by Resolution 47/2018 issued by the Agencia de Acceso a la Información Pública (entity in charge of enforcing Data Protection Lay 25,326) which contains guidelines and best practices in the adoption of security measures following the European standards of GDPR. In this context in which data protection authorities impose strict obligations on the way data controllers collect, store and process personal data from data subjects, RegTech companies play an active role offering secure and innovative solutions which can adequately meet such legal standards.
Economic conditions
Market size for RegTech-services and biggest companies in this business area
As previously mentioned, in Argentina the RegTech segment is small compared to other FinTech segments, representing roughly 2% of the total universe of Argentine FinTech companies. The most renowned companies in this segment are VuSecurity (fraud prevention) and Auth0 (cybersecurity).
Additional comments regarding the economic situation for RegTech-services or what RegTech’s must be aware of in this business area
RegTech companies have still a long journey of steady growth in Argentina. Cybersecurity and fraud prevention solutions will be more and more demanded as e-commerce continues growing globally.