LAWS

‘Creative’ Laws Underpin LatAm’s Fintech Expansion

Strong regulation and dynamic regulators are helping nurture a fintech boom across the region.

This article appears in the October issue of Global Finance Magazine.

The number of fintech startups in Latin America has grown by 340% over the past six years as these companies take a leading position in areas such as financial inclusion, cross-border payments, and instant payments. 

Nubank reached a milestone in January, becoming the largest private bank in Brazil with over 112 million users, according to the Central Bank of Brazil. The instant payment system Pix now accounts for more than half of transactions in the country and has some 170 million users, with 80% to 95% of the country using the service.

“Creative laws are not always good laws. So you can have very creative regulation that is not necessarily very good regulation,” said Eduardo de Los Heros, legal manager at Bitso, a Mexican cryptocurrency trading service and fintech. “Brazil has very advanced regulation for digital payments, and El Salvador has made Bitcoin its calling card to position itself as the crypto regional hub.”

Brazil, Colombia, and Mexico account for about 57% of all Latin American fintechs, with remittances, loans, and financial management the main segments. In Mexico, the arrival of Mercado Libre and its subsidiary Mercado Pago, as well as Nubank, has forced traditional banks to offer their own digital alternatives.

“Mexico and Brazil, as the biggest economies, are pushing towards regulation. El Salvador is small but dynamic and has a fantastic regulatory sandbox,” said Daniel Leiva, partner at Torres Legal in El Salvador. “Then there are countries that are also pushing forward, like Colombia and Argentina. Argentina is fighting to integrate fintechs into the economy.” 

With a Fintech 2.0 Law due in Mexico, the market is starting to mature as adoption of digital banks and payment schemes increases across the region. Mexico now has over 1,000 fintech companies, second in the region only to Brazil. 

“This famous law has the objective to develop open finance as well as public access to user data of Mexican financial projects,” said de Los Heros, “creating clear regulations for virtual actors, tokenization, and stable coins.”

That would not be a minute too soon, as Mexico’s rapid fintech expansion has outstripped the Comisión Nacional Bancaria y de Valores (CNBV)’s ability to regulate, Leiva said.

De Los Heros does not believe the law will be ready this year; there is no publicly available draft of the law, nor is a draft bill before Congress or the Senate. Yet, speaking at the Fintech Festival 2026 in February, CNBV President Ángel Cabrera claimed that Mexico was technologically ready for Fintech 2.0, adding, “The CNBV’s vision is to build an ecosystem of digitally born entities that generate value where cash still predominates today.” 

Leiva points to El Salvador as another example of dynamism in the industry. 

With one regulator, the National Commission of Digital Assets (CNAD), working in tandem with the Central Bank of El Salvador, the focus has been on neutral laws; CNAD regulates certain types of activities, like crypto, without marrying the law to specific technologies. A broader scope allows for quicker adoption and avoids delays in achieving regulatory consensus on specific blockchain models, for example. This enables distributed technologies and similar models to be regulated more effectively. 


Brazil and Mexico concentrated 78.5% of all regional VC in 2025. Fintech captures 61% of capital. 
Source: KPMG, Cuantico VP, StartupBlink • 2025-2026
(Brazil and Mexico concentrated 78.5% of all regional VC in 2025. Fintech captures 61% of capital.
Source: KPMG, Cuantico VP, StartupBlink • 2025-2026)

From Sandboxes to Standards

Colombia’s instant payment system, Bre-B, was launched by the Banco de la República last October. Bre-B aims to connect traditional banks, fintechs, and digital wallets through a single public digital platform. By August, it had recorded 1.51 billion transactions and more than 35 million users; 171 financial institutions had integrated by then. Those numbers could be even better if the bank had been less passive and restrictive over the past couple of years, according to Leiva. 

Eduardo De Los Heros,
Bitso
Eduardo De Los Heros,
Bitso

That said, Colombia’s fintech sector is at a crossroads, with rapid uptake butting up against a new regulatory framework. The Banco de la República and the Superintendencia Financiera de Colombia have instituted new regulations to protect consumers, ensure financial stability, and combat money laundering. Fintechs now have to adhere to the same standards as traditional banks, including rigorous know-your-customer protocols.

“I am not convinced that excessive regulation is the ideal mechanism for the financial services users,” says de Los Heros. “But in regions like Latin America, where there’s not always advanced banking options, it can be that regulation brings positive effects, at least because it protects users against possible abusive practices by stock markets, financial entities, or virtual service providers.”

Peru’s attempts to integrate banks, fintechs, and users on a single inter-platform payment system under one legislative umbrella are also attracting attention. The Andean nation has “a high index of unbanked people,” de Los Heros said, and in theory, having a unified system with a single platform could speed mass adoption. “We have to see how an interactive interbanking and inter-platform payment system could be adopted region-wise. It’s more important to have an interbanking system that works than an inter-platform system that is not adopted.”

In the medium term, both de Los Heros and Leiva foresee a maturing market with heightened regulatory scrutiny. More regulation does not necessarily mean a more restrictive environment in a region where institutions have been praised for creativity and dynamism, and where central banks responded to the Covid-19 pandemic in ways that avoided the inflationary pressures other countries endured.

Daniel Leiva,
Torres Legal
Daniel Leiva,
Torres Legal

“Powerhouses like Nubank or Mercado Libre didn’t exist 25 years ago, so creating regulation for them is complex,” Leiva said. “I firmly believe the big actors like Nubank will move into other regions. They will go global. We’re going to have to implement new regulatory mechanisms, like allowing a banking license to be used across Central America.”

Latin America can build on its reputation for forward thinking and dynamic legislation, he added.

“Through new mechanisms of payment, like Pix, [Brazil, Mexico, and El Salvador] are the three regional pillars of legislative development,” he said. “Very interesting things are coming, and you could say Latin America is the lungs of fintech laws globally.”

Not everything is rosy, and de Los Heros is particularly concerned with the implications of AI and how to regulate it.

“AI causes me to lose sleep,” he said. “I really doubt that the industry has all the controls needed. To protect financial systems and society against the unmeasured use of AI and its consequences, we might have to start from zero to establish a lot of norms that we haven’t even thought about yet.”

Nic Wirtz is a contributing writer based in Guatemala.

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Vogue Williams has hit back at mum-shamers after they accuse her of ‘breaking maternity laws’

VOGUE Williams has clapped back at people mum-shaming her after she was accused of ‘breaking maternity laws’.

The Irish presenter welcomed her son Remy Valentine last month and has since returned to some of her work commitments, including co-hosting both of her podcasts.

Vogue Williams has clapped back at people who have been mum-shaming her Credit: Instagram/ @voguewilliams
She recently welcomed a little boy and started up some of her work commitments again, including her podcasts Credit: My Therapist Ghosted Me

Chatting with comedian and Celebrity Traitors star Joanne McNally on this week’s episode of My Therapist Ghosted Me, Vogue‘s little one made an appearance.

Joanne said: “There’s the baby. Look at the baby. Forgot about him.”

Vogue then revealed that a fan accused her of breaking a maternity law by being out with her baby so soon, and clapped back at them with a healthy dose of sarcasm.

The star said: “Someone left a comment on my and Amber’s pod and they were like “a mother should not be out with their baby at all from a month old” blah blah blah. Like going on this rant about there’s a maternity law.

past love

Vogue Williams reveals her ’embarrassment’ over divorce from ex Brian McFadden


Bouncing back

Vogue Williams flashes her rock-hard abs THREE weeks after giving birth

Vogue shares the little one with partner Spencer Matthews Credit: PA
The couple already share three other children together Credit: Instagram / voguewilliams

“I was like, there’s no maternity law! And then I was like, hang on a second, I’m quite clearly in my bedroom with the baby as well.

“Anyway, I told her I agreed with her and that women should stay at home for at least one to two years with the baby after giving birth.

“She deleted the comment.”

The clap back comes shortly after Vogue flaunted her unbelievable body three weeks after birth.

Vogue has somehow already gained back the definition in her abs, which she flashed on Instagram while showing off a new clothing collection.

Remy came into the world on September 6, which Vogue announced in a post online.

Taking to Instagram, Vogue captured her baby son dressed in a blue cardigan as he slept soundly in his cot.

She also included pictures of her three older children with Spencer, Theodore, seven, Gigi, five, and Otto, three, as they surrounded their baby brother.

She captioned the post: “Remy Valentine Matthews.”

Confirming Remy’s arrival earlier that week, she wrote: “Our beautiful baby boy has arrived safely… The house is bursting with excitement, love and happiness and we couldn’t be more delighted.”

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Cornell case puts New York’s progressive image at odds with its rape laws | Education News

Last month, a woman identified as Jane Doe filed a lawsuit against Cornell University, the fraternity Chi Phi and the seven fraternity members she accused of gang-raping her on the night of October 19, 2024.

Her allegations have triggered a nationwide reckoning in the United States over the prevalence of sexual assault on college campuses.

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But the case has also reignited efforts to reform laws in the state of New York.

While the left-leaning state has long presented itself as a leader in women’s rights, advocates say sexual assault survivors still face pervasive legal barriers when they seek justice.

Erica Vladimer, a lawyer and founding director of Harassment-Free New York, a survivor-led nonprofit, told Al Jazeera that much of the legislation currently in the spotlight is the culmination of years, if not decades, of work.

“These are bills that we have been fighting for for years when sexual violence is not in the news,” Vladimer said.

She drew a line between the #MeToo movement, which began in 2017 as an online campaign to denounce sexual misconduct, and the current wave of outrage following Doe’s allegations.

“It speaks to the fact that the #MeToo movement is not dead. It is a movement, not a moment,” Vladimer said.

Already, leaders in Albany, the state capital, have signalled they would take action following the Cornell case.

On Wednesday, the New York Assembly announced it had formed a working group to examine the state’s sexual-assault laws and develop recommendations for the 2027 legislative session.

Still, advocates say more concrete measures are needed to address the crisis.

“I appreciate that this work is happening,” said Lindsey Boylan, a New York City Council candidate. “It doesn’t undo the fact that rape culture is pervasive in the United States and very much so alive and well in New York.”

Boylan was the first woman to publicly accuse former New York Governor Andrew Cuomo of sexual harassment in another high-profile misconduct case, back in 2020. She is among those calling for greater reform.

Here are some of the measures advocates are pushing state lawmakers to adopt or amend:

‘Voluntary intoxication’ statute

The Cornell University case has brought renewed attention to New York’s “voluntary intoxication” statute, a legal loophole that can make it harder to prosecute sexual assault when a person has willingly consumed alcohol or drugs.

New York Governor Kathy Hochul pledged on Friday to work with lawmakers to close the gap.

“It should not matter whether they chose to use drugs or alcohol. Voluntary intoxication is not a license for sexual assault or gang rape. Period,” Hochul said.

Under the current state law, a person who voluntarily drinks or takes drugs is not considered “mentally incapacitated” during an assault, even if they become too intoxicated to consent.

That can make it harder for prosecutors to bring a sex-crime charge. The law primarily recognises incapacitation in the context of sexual assault when a person was involuntarily intoxicated, unconscious or otherwise “physically helpless”.

That distinction has become central to the Cornell case. Doe has acknowledged that she consumed substances before the alleged rape, saying that she was pressured into drinking alcohol and taking the dissociative drug ketamine.

The Tompkins County district attorney initially declined to bring charges, pointing to the law’s stance on “voluntary intoxication”. But the investigation has since been reopened, amid public pressure.

New York is one of 19 states in the US that distinguish between “voluntary” and “involuntary” intoxication when it comes to determining consent in sexual violence cases.

But the Cornell case has spurred a push to remove the distinction from the law books. Critics have argued that sexual assault is no less grievous if a victim is drunk or has chosen to take drugs.

“I mean, to have New York, a supposedly progressive state, penalise people who are sexually abused for drinking is disgusting,” Boylan told Al Jazeera.

Vladimer, for her part, explained that distinguishing between “voluntary” and “involuntary” intoxication as a means for pursuing sexual assault cases shifts the focus onto the actions of victims, rather than perpetrators.

“We essentially have codified victim-blaming by saying if you become voluntarily intoxicated and then are sexually assaulted, you essentially cannot seek justice in our court system,” Vladimer told Al Jazeera.

In June, the New York state Senate unanimously passed a bill to allow sexual assault charges regardless of whether a victim is intoxicated voluntarily or involuntarily.

But the legislation has yet to be taken up in the state Assembly.

Students look on at Cornell University’s campus in Ithaca, New York, US, October 1, 2026. REUTERS/Lauren Petracca
Students look on at Cornell University’s campus in Ithaca, New York, on October 1 [Lauren Petracca/Reuters]

The rape-shield gap

New York’s rape-shield protections limit the use of evidence about a complainant’s sexual history and conduct in criminal proceedings. But those protections do not currently extend to civil cases.

This distinction could matter in the Cornell case because Doe filed a civil lawsuit.

Vladimer said questions about a survivor’s behaviour could come up in the discovery process of a civil case, as well as in court.

“There is the potential of her having to face questions about things like her sexual history,” Vladimer said.

Bridie Farrell, the director of victim rights advocacy and legislation at the law firm Weitz and Luxenberg, told Al Jazeera that she has seen major differences in how male and female survivors are questioned in civil cases where this practice is still permitted.

In one case involving a brother and sister who were both sexually assaulted, Farrell said the man was not questioned about his sexual history while the woman was “grilled on it”.

A bill sponsored by State Senator Liz Krueger would extend rape-shield protections to civil proceedings. The measure passed the Senate in June and is currently before the Assembly Judiciary Committee.

A student walks through an archway at Myron Taylor Hall on the Cornell University campus in Ithaca, New York, US, October 1, 2026. REUTERS/Lauren Petracca
A student walks through an archway at Myron Taylor Hall on the Cornell University campus in Ithaca, New York, on October 1 [Lauren Petracca/Reuters]

Retaliatory defamation lawsuits

Advocates are also pushing for legislation to prevent retaliatory defamation lawsuits.

Boylan said she has spent more than $2m defending herself in legal proceedings connected to her accusations against Cuomo, who stepped down as New York governor in 2021.

He has repeatedly denied any allegations of wrongdoing, despite a state attorney general’s report that concluded he “engaged in conduct constituting sexual harassment”.

“Every step of the way, we have a system that penalises people for speaking up about their own harm,” Boylan said.

Boylan and Charlotte Bennett, a former aide who also accused Cuomo of sexual harassment, are proponents of the Speak Your Truth Act, which would provide legal protections for people who publicly report sexual assault, harassment or discrimination.

The bill, sponsored by Assembly member Jessica Gonzalez-Rojas, would make certain communications about sexual assault, harassment or discrimination privileged when they are made without malice.

It would also allow survivors of sexual misconduct who successfully defend themselves against a defamation lawsuit to recover legal fees and costs. The bill remains in an Assembly committee.

Cornell University and local officials in Ithaca, New York, have faced questions about how they handled the Jane Doe case
Cornell University and local officials in Ithaca, New York, have faced questions about how they handled the Jane Doe case [Lauren Petracca/Reuters]

A recent win, a long way to go

For Bridie Farrell, the victims’ rights advocate, the fight for legal change is personal.

Farrell was a 15-year-old competitive speed skater in 1997 when she said she was sexually abused by her 33-year-old teammate and mentor. She came forward with her story of abuse in 2013.

By then, the statute of limitations in her case had expired. Farrell later became an advocate for changes to New York’s laws, helping to pass the Child Victims Act in 2019 that extended the time available for survivors of childhood sexual abuse to pursue criminal and civil claims.

The law allowed Farrell to file her own case, which she did in 2020. She tells Al Jazeera that a trial has finally been scheduled for June 2027.

“Before we passed the Child Victims Act in 2019, New York was one of the worst in the country,” Farrell said of the situation for sexual assault survivors seeking justice.

Farrell considers the legal impediments to Doe’s case — like the “voluntary intoxication” statute — all too predictable. “I’m not surprised if we haven’t updated a law that is archaic,” she said.

Still, lawmakers have signalled willingness to reform such laws. In announcing the state Assembly’s working group on sexual-assault laws, Speaker Carl Heastie pledged to “thoughtfully” consider how the state can strengthen its laws.

“The allegations being reported out of Cornell University are truly horrifying,” Heastie said on Wednesday. “We want to do everything we can to ensure victims of sexual assault see justice served.”

But survivors and sexual violence advocates say the Cornell case points to problems that go beyond any single law. They hope to see widespread systemic and societal change.

“Changing legislation is incredibly important. But legislation in a lot of cases can only go [as far as] the paper that it’s written on,” Boylan said. “It would be amiss to orient this horrible, tragic, unacceptable, infuriating case in isolation without looking at the broader rape culture of our state and our country.”

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