BRASILIA: Brazil’s government plans to publish new rules for fintech on Friday, following a public consultation by the central bank, three sources told Reuters on Thursday.
He said the rules for fintech companies were discussed at an extraordinary meeting of the National Monetary Council, which oversees Brazil’s financial and monetary system. The meeting will continue on Friday as well.
The public consultations were published a year earlier after complaints from established large banks that fintechs were being treated with particularly lax regulations, even though they were very large.
Still, Brazilian officials said they would try to continue to encourage startups as fintechs were bringing innovation and increased competition as big banks revamp their operations.
The consultation pointed to the need to increase capital requirements for large fintechs such as Nubank, Pageguro and Stone. The new rules could be announced as Brazil’s leading fintech NuBank prepares for an initial public offering in New York, which is expected to value the company at around $50 billion. The figure would position Nubank as the most valuable financial institution in Latin America, surpassing Ita Unibanco, the largest bank in Brazil.
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