WHAT ARE FINTECH COMPANIES AND HOW DO THEY OPERATE?
Fintech companies are entities that integrate technological solutions into financial services, the securities market, and the insurance sector. These organizations can be private, public, or have majority state ownership. Their defining feature is the intensive use of technology to deliver innovative services such as digital payments, crowdfunding platforms, virtual asset services, and blockchain-based solutions.
A practical example of their application is seen in platforms that enable investment in tokenized assets—digital representations of tangible or financial goods stored on blockchain networks. This approach not only improves access to financial markets but also accelerates the transfer and management of such assets.
REQUIREMENTS TO ESTABLISH A FINTECH COMPANY IN BOLIVIA
Any Fintech company seeking to operate must be formally incorporated as a financial entity and go through an authorization process with the Financial System Supervisory Authority (ASFI). This process includes obtaining a certificate of incorporation and an operating license, in addition to adhering to restrictions on using names or terms that may mislead the public about their legal status.
These companies must operate within specific regulatory categories, including:
- Blockchain-based solutions, tokenized assets, and virtual assets
- Electronic payment services
- Digital financing platforms
- Business technologies applied to finance
- Other services approved by ASFI
HOW THE REGULATORY SANDBOX FOR FINTECH COMPANIES WORKS
In summary, Bolivia’s current legal framework for Fintech companies seeks to strike a balance between promoting technological innovation and protecting the financial system. Clear definitions regarding virtual assets, blockchain, tokens, and digital service providers enhance both legal and operational transparency, facilitating investment and regulatory oversight.
Our law firm provides specialized legal counsel in the incorporation and regulation of technology-driven companies in the financial sector. If you need legal advice or representation in this field, contact us today for personalized assistance.
Frequently Asked Questions (FAQs)
Do Fintech companies need authorization to operate?
Yes. They must go through a formal incorporation and licensing process with ASFI.
What services can Fintech companies offer?
They can provide solutions for digital payments, online financing, blockchain applications, virtual assets, and more, subject to regulatory approval.
What is the Regulatory Sandbox (Entorno Controlado de Pruebas – ECP)?
It is a controlled environment where Fintech companies test their technological services under real but limited conditions, under state supervision.
Who regulates the insurance services offered by Fintech companies?
The APS is responsible for regulating these services in accordance with its legal authority.
- Plurinational Legislative Assembly. (2013). Financial Services Law No. 393.
- Supreme Decree regulating Financial Technology Companies, 2025.
The content of this article does not reflect the technical opinion of Rigoberto Paredes & Associates and should not be considered a substitute for legal advice. The information presented herein corresponds to the date of publication and may be outdated at the time of reading. Rigoberto Paredes & Associates assumes no responsibility for keeping the information in this article up to date, as legal regulations may change over time.
