The National Bank of Kyrgyzstan (NB KR) has published a draft of new rules aimed at organizing the functioning of financial marketplaces. This document proposes the implementation of unified technological API standards, as well as strengthening the protection of users' personal data.
The new regulations will replace the current provisions from 2022 and ensure transparent conditions for the registration of operators through a "single window." This was reported by the press service of the NB KR.
A draft resolution of the board of the NB KR "On the Approval of the Rules for the Creation and Functioning of Financial Platforms (Marketplaces) in the Kyrgyz Republic" has been put up for public discussion.
The proposed rules aim to establish clear regulations for the development and expansion of financial services on platforms in the country. The main objectives of the document are:
to ensure a stable, transparent, and secure regulatory framework for financial platforms;
to stimulate a competitive environment in the financial market;
to protect the rights and interests of consumers of financial services.
"This draft resolution is a response to the rapid development of digital financial technologies and the expansion of the use of fintech solutions, which includes requirements for anti-fraud systems, the transition to digital documentation, and the protection of personal data. The document is also intended to address gaps in the regulation of timelines and refusals in the registration of financial platform operators," the explanatory note to the project states.
The board of the NB KR made the following decisions:
to approve the Rules for the Creation and Regulation of Financial Platforms (Marketplaces) in Kyrgyzstan;
to annul the previous resolution on regulating access to financial services through marketplaces, adopted on June 2, 2022.
According to part 1 of Article 17 of the KR law "On Normative Legal Acts in the Kyrgyz Republic," the new Regulation is proposed in an updated version titled "Rules for the Creation and Regulation of Financial Platforms (Marketplaces) in the Kyrgyz Republic."
The document will contain:
requirements for financial platform operators;
procedures and timelines for the consideration of documents by the NB KR;
grounds for the registration or refusal of registration of platform operators.
These changes are aimed at increasing the transparency of the operations of financial platforms and improving the assessment of their effectiveness.
"According to the document, requirements for the disclosure of information by financial platform operators will also be established, which will increase consumer awareness and strengthen trust in such platforms as intermediaries in the financial sector," the explanatory note emphasizes.
Particular attention is paid to the API standards necessary for interaction with financial service providers.
"The existing requirements for APIs are not sufficiently detailed. This leads to operators providing integration interfaces at a basic level. Such a situation complicates cooperation with financial institutions, reduces system compatibility, and limits the scalability of financial services. The introduction of unified API standards will create a unified approach to integration and improve service quality, as well as promote competition and innovation," the project states.
In addition, special attention is given to the protection of information and personal data of clients. In light of the growing cyber threats, the requirements for financial platform operators have been tightened to ensure the confidentiality, integrity, and availability of data. The implementation of these norms will increase user trust in digital financial services and minimize cybersecurity risks.
The project also specifies:
requirements for documents for the registration of financial platform operators in the NB registry;
types of informational and financial services offered on the platform;
requirements for the placement of information about financial products on the platform;
measures for protecting information on the financial platform.
A financial platform operator will be able to provide the following services:
information about financial products, including exchange rates, types of services, tariffs, and interest rates, as well as the ability to compare conditions among providers within the framework of concluded contracts;
services for buying and selling gold bars;
information about other assets offered by financial service providers in accordance with the legislation of the KR.
All transactions with monetary funds will be conducted only through the service provider, and not on behalf of the platform operator.
The issues addressed in this initiative involve the activities of financial platform operators, commercial banks, microfinance organizations, payment systems, and other participants in the financial market.
A study of international experience in regulating financial platforms has shown that there are no universal standards; however, common strategies are observed that help countries adapt to digitalization.
It is asserted that the implementation of these norms will not lead to negative social, economic, or legal consequences.
Source: banks.kg
