Fintech Law in Argentina: a conversation with Juan Diehl Moreno, Partner at Marval O’Farrell Mairal  

"Argentina has an extremely dynamic and constantly growing Fintech ecosystem, which has been able to adapt to complex contexts with creativity and resilience."
 

In a context where technology redefines the rules of the global financial system, Latin Counsel interviewed Juan M. Diehl Moreno, partner at Marval O’Farrell Mairal and leader of the Fintech Department. With more than a decade of experience, his expertise covers areas such as Fintech, foreign investments, banking and foreign exchange law, capital markets, corporations, and mergers and acquisitions.

A reference in the Argentine Fintech ecosystem since its inception, Diehl Moreno analyzes in this interview the main regulatory challenges of the sector, the impact of emerging technologies such as blockchain and cryptocurrencies, and the growing collaboration between traditional banks and startups. He also offers his views on the regulatory future under Argentina’s new government and provides valuable advice to young lawyers who wish to specialize in this dynamic intersection between law and innovation.

Latin Counsel: How have you seen the Fintech sector in Argentina evolve since you started working in it?

Juan Diehl: Since I started working in the sector in 2011, the evolution of the Fintech ecosystem in Argentina has been truly remarkable. In recent years, the number of startups has grown exponentially. This growth was driven by the need for more accessible, efficient and technological financial solutions.
One of the main milestones was the massive expansion of digital wallets for payments, initially led by large companies that paved the way for the incorporation of multiple platforms, which today are integrated into the daily lives of millions of people.

These digital wallets gained ground in segments where traditional players have slower or more bureaucratic processes, offering a 100% digital and user-centric experience.

At the same time, new Fintech verticals emerged, such as crypto-exchanges -today Virtual Asset Service Providers (VASPs)- that offer savings and investment services in cryptoassets, consolidating this asset class as an attractive option in a country with high inflation and exchange restrictions, such as Argentina.
In response to this growth, the Central Bank of Argentina (BCRA) gradually regulated different aspects of the digital payments ecosystem, such as, for example, the role of payment aggregators, payment acceptors and payment initiators. Recently, the activity of PSAVs was regulated, which completed the regulatory scheme for Fintech verticals.

The institutionalization of the Fintech sector is not slowing down, with Argentina having regulations for almost all activities related to digital payments. Looking ahead, we expect further development of Open Finance and alternatives such as crowdlending and crowdfunding, which, although they are regulated, have not taken off as expected.

Latin Counsel: How does being highly recommended in directories such as Chambers affect your career and practice and what impact does this have on your clients’ trust?

Juan Diehl: It is a great honor to be recommended by our clients and colleagues in directories such as Chambers and Partners, as it is one more way of recognizing the work we have developed over the years in a firm of the prestige of Marval O’Farrell Mairal. This type of recognition has a significant impact on my career and professional practice, without a doubt, as it acts as a reliable reference for those future clients who do not know my work personally. Particularly when seeking advice in Argentina, many turn to these renowned directories to evaluate professionals. This recognition not only supports the experience in an area as complex and innovative as Fintech, but also strengthens the relationship of trust with clients, since they know that the advice has local and international recognition.

Latin Counsel: What do you think are the most important skills to succeed in FinTech, banking and finance law today?

Juan Diehl: To be successful in Fintech, banking and finance law, I consider several skills to be fundamental.

First, it is essential to have a thorough knowledge of the applicable regulations, both local and international, given that the legal framework of this sector is particularly dynamic and specialized. In many cases or instances, certain products or services are not regulated, which makes legal analysis more challenging.

At the same time, it is important to develop strategic thinking to anticipate regulatory changes in order to understand how they will impact clients’ business models in different jurisdictions. On the other hand, it is essential to have the ability to assess legal and operational risks in a comprehensive manner, considering not only the current regulations but also the expectations of the regulator that will apply the regulations.
Another crucial skill is the ability to communicate and understand, especially to explain complex regulations to clients who do not usually have a legal background or who are from abroad and do not know the ins and outs of Argentine regulations.

Finally, it is necessary to have the ability to work interdisciplinary with other areas of law in order to provide effective advice aligned with business objectives.

Latin Counsel: What are the most common challenges faced by FinTech companies in the legal field?

Juan Diehl: Fintechs face several legal challenges, mainly derived from the speed at which the sector evolves in the face of a regulatory framework that is often too rigid or, sometimes, outdated. The constant modification and appearance of new regulations generates legal uncertainty and forces Fintechs, and logically their legal advisors, to be constantly adapting.

On the other hand, by handling sensitive user information, Fintechs must comply with strict cybersecurity and personal data protection regulations, which implies significant investments in infrastructure and compliance.

In addition, depending on the type of services they offer, they may need specific licenses or authorizations from different agencies to operate properly, which may represent a barrier to entry -especially for new ventures seeking to scale quickly-.

Latin Counsel: How do you anticipate that the regulatory framework for the Fintech area will change in the coming years?

Juan Diehl: The regulatory framework for the Fintech sector is constantly evolving and everything indicates that this trend will intensify in the coming years. It is highly likely that we will see a strengthening of regulatory requirements, particularly with regard to digital wallets, payments, digital credit and cryptoassets. In addition, an increasing adoption of international standards is expected, which could harmonize local practices with global regulatory frameworks, such as the Financial Action Task Force (FATF) Recommendations.

Cooperation between regulators from different countries is also expected to increase, with the aim of supervising cross-border operations, which are quite common in this area of law. This regulatory evolution should seek to balance the promotion of innovation with consumer protection and the stability of the financial system.

Latin Counsel: How do you keep up to date with regulations and trends in the Fintech sector?

Juan Diehl: Keeping up to date in this sector is a constant task and requires discipline. Fortunately, I have a great team of lawyers, with whom we actively follow the regulations issued by government entities and financial supervisors such as the Central Bank of Argentina (BCRA), the National Securities Commission (CNV), the Financial Information Unit (UIF) and the Customs Collection and Control Agency (ARCA); in addition to monitoring the regulations of international regulators, such as the Securities and Exchange Commission (SEC), and relevant guidelines in the Fintech sector, such as the Recommendations of the Financial Action Task Force (FATF).

I also follow specialized reports on cryptoassets and payments, as well as I am subscribed to newsletters and media focused on the Fintech sector.
I complement this continuous updating by participating in conferences and events, both local and international.
All this allows me to provide informed, strategic advice, aligned with the latest trends in the Fintech market and sector.

Latin Counsel: What differences have you noticed in the approach to innovation between traditional financial institutions and Fintech startups?

Juan Diehl: I have noticed that traditional players have slower and more hierarchical innovation processes. In contrast, Fintechs tend to be much more agile, with a great capacity to adapt. This is how they create 100% digital solutions. However, in recent years we have seen how both worlds are beginning to collaborate more actively, combining the strength and reputation of the banking sector with the disruptive and innovative capacity of Fintechs.

Latin Counsel: What role do cryptocurrencies and blockchain play in the financial system?

Juan Diehl: Cryptocurrencies and blockchain have introduced a new and innovative dynamic in the financial system. These new technologies have challenged the traditional structures offered by banks and traditional agents for asset and transaction management.

Blockchain technology allows us to do transactions more economically, while maintaining the standards we are used to in transactions offered by traditional structures. Blockchain technology reduces intermediaries and optimizes processes, which is fundamental for cross-border payments and real-time settlements.

What is relevant is that its applicability transcends the realm of cryptocurrencies, extending to so-called smart contracts, asset tokenization and other developments that transform the way in which different goods and services are managed and traded.

A future is envisioned in which the financial infrastructure will increasingly integrate solutions based on blockchain technology, promoting financial inclusion and operational efficiency.

In this context, cryptocurrencies have acquired an increasingly significant presence in society, with a growing number of individuals and institutions adopting and promoting them as a viable alternative.

Latin Counsel: What do you consider to be the importance of Fintech in these times and how does it impact the economy?

Juan Diehl: The Fintech sector has established itself as a key driver of innovation within financial services, promoting greater accessibility to the public, reducing costs and diversifying products.

The impact of the Fintech sector on the economy is very significant, as it drives financial inclusion of segments that historically were not targeted. In this way, it fosters competition within the traditional banking system.

Through their technological advances, Fintechs contribute to the decentralization of the financial sector, facilitating the digitalization of payments and access to financing options for both individuals and companies through other means.
In an economic context marked by volatility and inflation, as is the case in Argentina, these companies play a key role in optimizing resources and providing alternative solutions for savings, investment and credit, providing more efficient and accessible tools to citizens.

Latin Counsel: How should regulations be adapted to encourage innovation without compromising security?

Juan Diehl: Regulations must strike a balance between promoting innovation and mitigating risks, thus avoiding restrictive approaches that hinder technological development.

An ideal regulatory framework is one that is flexible and accommodates the reality of the sector in the country. Thus, today some regulators, such as the CNV, propose procedures for the participatory development of standards. In this way, experimentation is allowed through schemes such as regulatory sandboxes, where companies can test solutions under supervision before they are launched on the market.

Cooperation between regulators, industry and other stakeholders is the fundamental key to designing regulations that guarantee consumer protection and financial stability, without slowing down technological progress.

Comparative experience is also extremely useful, as it allows us to have a clear regulatory north, but foreseeing the possible complications of applying the regulation in question.

Latin Counsel: What role will partnerships between traditional banks and Fintech companies play in the future?

Juan Diehl: Partnerships between traditional banks and Fintechs represent a key and necessary trend in the evolution of the financial system. Traditional banks bring their infrastructure, experience and access to a broad customer base, while Fintechs offer innovation, agility and capillarity, the latter term being understood as the proximity that Fintechs have with their users. This synergy enables the development of new products and services, such as digital payment solutions, alternative credit and more accessible investment platforms.

In the future, we will see more and more integration between both parties, with collaborative business models that combine the security and solidity of the banking sector with the efficiency and immediacy that characterize Fintechs.

Latin Counsel: How do you see the evolution of the Fintech sector with the new government of Javier Milei and what changes do you expect in economic policies affecting this sector?

Juan Diehl: The government of President Javier Milei maintains a stance in favor of deregulation and free competition in financial markets, which benefits the Fintech industry on a large scale. Currently, there is a reduction of bureaucratic and regulatory obstacles, which facilitates the operation of startups and the incorporation of new technologies in the market. However, there are still pending debts, such as the need to eliminate the prohibition of crypto activities for PSPs and financial entities.

Latin Counsel: What advice would you give to young lawyers who wish to specialize in the Fintech area?

Juan Diehl : Fintech is a dynamic field that requires interdisciplinary knowledge. My main advice is for young lawyers to be trained not only in financial and regulatory law, but also in the role of digital payment systems and cryptoassets; to know what each vertical and company in the Fintech industry does . In addition, I advise that they stay fundamentally up-to-date on regulatory changes and global trends, as the industry evolves rapidly.

Importantly, hands-on experience, whether in specialized firms, startups or regulatory entities is also key to understanding the legal and operational challenges of the industry. Finally, I advise developing an innovative and flexible mindset, which is essential for advising clients in an ever-changing environment.

Latin Counsel: What do you think are the main regulatory gaps facing the crypto industry in Argentina and the region today?

Juan Diehl: Several aspects of the crypto industry have been recently regulated, so I could not say that we are facing "regulatory gaps" today. However, our clients and the industry in general indicate that there is a lack of adaptation and harmonization of the remaining regulations applicable to them. The main example of this is the impact of the Tax on Debits and Credits, which affects the sector and slows down its expansion.

For those cases where there is no specific regulation, the most important exchanges usually anticipate by applying international standards, such as the FATF Guidelines/Recommendations, even if in the particular case there is no express requirement at the local level. However, this does not replace the need for clear, proportional and technologically neutral rules that favor innovation without deprotecting the user.

Latin Counsel: What is your opinion on the legal treatment that tokenization should have?

Juan Diehl: It is a question that has too many edges. However, our country has a promising development, constituted by the regulatory project launched by the CNV in April this year through Resolution 1060/2025, to regulate the digital representation of negotiable securities through distributed registry technologies (TRD). In the event that this project reaches regulatory status, a regulatory sandbox is foreseen for a period of one year as from its entry into force, in order to evaluate the implementation of the regime in a controlled environment. It could be said that the digital representation of negotiable securities implies one of the possible variants of tokenization (i.e., tokenized negotiable securities). It is to be expected that projects incorporating other "tokenizable" assets, such as "real world assets" or RWAs, will emerge.

Latin Counsel: From your experience, how do exchanges handle the challenges related to the Prevention of Money Laundering and Terrorist Financing?

Juan Diehl: In the daily advice of the largest and most influential exchanges in the region we have seen a significant evolution in the approach to the Prevention of Money Laundering and Terrorist Financing.

In recent times, this evolution has been strengthened with the inclusion of Virtual Asset Service Providers (VASPs) as obliged subjects before the UIF, the anti-money laundering entity of our country. In this way, clearer rules have been consolidated, setting a new operational standard.

Exchanges with a higher degree of maturity no longer see compliance only as a formal obligation to access PSAV registration, but also as a strategic factor that impacts their reputation and sustainability in the long term. They are increasingly investing in advanced technologies and strengthening their internal structure with solid policies, compliance committees and continuous monitoring processes.

Latin Counsel: Which country in the region do you think is a good example in terms of Fintech regulation and why?

Juan Diehl: From a comparative perspective, Brazil is a country that stands out as one of the most developed and evolved Fintech ecosystems in the region. Its regulation has been able to balance the promotion of innovation with the need for legal certainty. The Banco Central Do Brasil has adopted a technical and modern approach, implementing initiatives such as the Instant Payment System (PIX) and Open Finance.

This clear and proactive regulatory environment allows many Fintechs to scale in a sustained manner and has generated an ecosystem where legal frameworks accompany the evolution of the market. For those of us who advise companies with presence in multiple jurisdictions, Brazil represents a concrete example of how a regulatory vision aligned with technological innovation can translate into an environment conducive to the development of the ecosystem.

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