PERU Trends and Developments Contributed by: Luis Ernesto Marín and Andrés Kuan-Veng, Rubio Leguía Normand
The role of the regulatory sandbox in fintech development Peru introduced a regulatory sandbox as a con - trolled environment for fintech firms to test new financial products and services under the super - vision of regulatory authorities. However, this initiative has faced criticism due to its stringent entry requirements, which necessitate complet - ing an initial stage of the licensing process with the SBS before gaining sandbox approval. This presents a challenge for early stage fintech start- ups looking to experiment with novel business models. Additionally, with the implementation of Decree- Law No 1531, which allows financial institutions to conduct all their operations digitally, it appears that the sandbox is more tailored toward estab - lished incumbents rather than fintech start-ups. Many industry stakeholders argue that simpli - fying access to the sandbox could enhance its effectiveness in driving fintech innovation. Key regulatory developments impacting fintech The growth of digital banking One of the most significant regulatory changes in Peru’s financial sector was the introduction of Decree-Law No 1531, which permits finan - cial institutions to operate entirely online. This regulation has paved the way for the establish - ment of fully digital banks, reducing reliance on physical infrastructure and lowering operational costs. The ability to operate without physical branches has also made the Peruvian market more attractive to international fintech firms con - sidering expansion into the country. Credit companies and their limited appeal The Empresas de Créditos framework was introduced to allow credit-focused financial institutions to operate without collecting public
deposits, replacing the previous Small and Micro Enterprise Development Entities (EDPYME) model. However, despite offering a more stream - lined regulatory process, the attractiveness of this model remains limited. Certain capital requirements and operational constraints make it less appealing for fintech companies that already operate in the lending space. A potential benefit, however, is that interest rates charged by credit companies are not subject to the 18% value added tax (VAT), which could incentivise certain fintech lenders to seek this licence. Interoperability and real-time payments Peru has made significant progress in advancing payment interoperability, ensuring that transac - tions can occur seamlessly between banks, digi - tal wallets, and other payment service providers. The Banco Central de Reserva del Perú (BCRP) has also introduced regulations on payment agreements, requiring greater transparency in pricing structures and security enhancements. A key focus has been the implementation of immediate payments, allowing real-time trans - actions between different financial institutions. These efforts aim to improve financial inclusion and drive greater efficiency in the country’s digi - Cryptocurrency regulation remains uncertain Despite the growing use of cryptocurrencies in Peru, there is still no formal regulatory frame - work governing their trade, issuance, or taxation. While the BCRP and SBS have expressed con - cerns about fraud and financial stability risks, industry players continue to push for clearer regulations. For now, the only regulatory requirements in place apply to virtual asset service providers tal payments infrastructure. Future regulatory outlook
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