ECUADOR
On August 18, legislator Nathalie Viteri (Partido Social Cristiano – opposition) presented a bill to the National Assembly to amend several laws for the development, regulation, and control of financial technology services (Fintech Law). The aim of this proposal is to create a legal framework for the constitution, supervision and control of seed capital, venture capital and angel capital funds that finance ventures in the Fintech industry and other types of innovative and/or high-risk ventures. It is expected that the bill would be sent to committee in the short term.
The bill proposes that financial technology services should be provided by non-financial legal persons incorporated as public limited companies, limited liability companies or simplified joint stock companies. Public and private financial institutions may participate in the capital of these companies as subsidiaries or affiliates, in accordance with the provisions of the Monetary and Financial Organic Code.
The bill also envisages that financial technology services are companies that carry out technological financial activities focused on technology. These activities include the following:
- Payment and transfer methods. Payment platforms, e-commerce, e-wallets and international transfers;
- Infrastructure for financial services. Customer assessment and risk profiling, fraud prevention, identity verification, banking APIs, payment method aggregators, big data & analytics, business intelligence, cybersecurity and e-contracting.
- Digital credit origination. These are companies that offer credit products through electronic platforms, without this implying placement.
- Financial solutions for companies. Software for accounting and billing and financial management infrastructures.
- Personal finance and financial advice. Personal finance management, financial product comparators and distributors, and financial planning.
- Crowdfunding. Crowdfunding based on loans, donations or pre-purchase of goods or services.
- Developers of blockchain-based solutions, intermediaries and digital asset markets.