🆘 Regulatory pressure in Brazil🇧🇷: payment providers seek urgent meetings with the SPA and review of new restrictions

🆘 Regulatory pressure in Brazil🇧🇷: payment providers seek urgent meetings with the SPA and review of new restrictions

The main source of pressure on the industry is the new regulation establishing a 24-hour deadline to freeze user accounts following an official notification. Companies failing to comply within this period may become jointly liable through solidary tax responsibility alongside illegal operators.

🔸 Fintech companies are raising concerns about a potential “domino effect of bankruptcies” that could impact the payments sector. The new regulation significantly limits the operations of companies that, at the time transactions were processed, lacked sufficient mechanisms to distinguish legal platforms from illegal ones.

🔸 In this context, small and medium-sized fintech providers are at a disadvantage compared to banks, which can afford to maintain sophisticated monitoring and compliance systems operating continuously.

🔸 Context: according to statements from Brazil’s Minister of Justice, approximately 25.2 million Brazilians place bets on illegal platforms during the Football World Cup period.

#news #Brazil #gambling

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