WMARANON

Secure Financial Innovation

The Regulation for Financial Technology Companies (FinTechs) issued by the Financial System Supervisory Authority (ASFI), along with Crypto Week in the United States (U.S.), reflects a global trend toward the consolidation of regulatory frameworks that promote financial innovation without compromising user protection or the stability of the financial system. While Washington advances initiatives to legitimize the cryptoasset market, Bolivia is laying the foundations for a regulated environment that allows innovative financial service providers—including cryptocurrency platforms, among others—to operate under clear and transparent rules.

In the U.S., during the third week of July 2025, the GENIUS Act was signed into law, becoming the first federal legislation regulating stablecoins—cryptocurrencies backed by the U.S. dollar. In parallel, the CLARITY Act was approved by the House of Representatives, establishing a comprehensive framework for the crypto ecosystem, complemented by the Anti-CBDC Surveillance State Act, aimed at safeguarding citizen privacy by prohibiting the issuance of digital currencies by central banks.

These initiatives demonstrate the growing political and economic weight of the crypto sector worldwide. As a result, the total value of the cryptoasset market surpassed USD 4 trillion (USD 4,000,000,000,000), with Bitcoin reaching USD 123,000 and Ethereum marking its highest level since 2024.

For its part, Bolivia implemented its FinTech Regulation during the first week of July 2025, aimed at regulating the creation and operation of fintech companies, including virtual asset platforms. A notable feature is the introduction of the Regulatory Sandbox, a mechanism that allows companies to test products under controlled conditions, identify risks, and improve protection standards before large-scale deployment.

This regulatory effort also responds to the rapid growth of the crypto sector in the country. According to the Central Bank of Bolivia, transactions involving virtual assets increased by 530% between 2024 and 2025 (from USD 46 million to USD 294 million), driven by their use as a hedge against currency speculation.

In this way, Bolivia is becoming part of an emerging global vision: regulation and innovation not only can coexist, but can also reinforce one another. For example, while the U.S. adopts a dual federal–state supervisory model, Bolivia opts for a progressive approach based on phased authorizations and controlled testing environments. This contributes to strengthening legal certainty, accelerating the digital transformation of the financial system, and creating a more competitive and inclusive environment.

Emerging financial technologies offer multiple benefits to the population. On the one hand, stablecoins reduce remittance costs for families or can serve as a store of value; virtual assets more broadly expand financial access for unbanked communities; and blockchain technology improves transparency and traceability not only of transactions, but also of assets. However, these advances also entail risks such as volatility, digital fraud, and potential systemic imbalances. Therefore, robust regulatory frameworks such as the FinTech Regulation are essential to maximize social benefits, mitigate risks, and consolidate a modern, secure, and inclusive financial ecosystem.

Author: Walter Marañon Quiñones