Bolivia’s Financial System Supervisory Authority (ASFI) has approved and brought into force a new framework governing the incorporation and operation of Financial Technology Companies (ETFs) and the regulatory adaptation of Bolivian firms already providing technology-enabled services in financial services, the securities market and/or insurance. A central feature is the Controlled Testing Environment (ECP), a supervised setting in which ETFs can test innovative services under real but limited and controlled conditions. The ECP is designed to allow monitored provision of services under defined safeguards for financial consumers and, based on ASFI’s assessment of a service tested in the ECP, to support the development of service-specific rules; it also provides for temporary and proportional regulatory flexibility, subject to ASFI authorisation of modifications. The regulation sets principles including responsible innovation, interoperability, and confidentiality and reserve, and establishes requirements covering, among other areas, personal data protection, cybersecurity, information handling, complaints handling and risk management, while permitting alliances with other entities to deliver operations. Existing firms providing relevant innovation-based services have until 31 December 2025 to begin their adaptation process, and may continue offering the services they declare to ASFI while doing so.

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