Historically, compliance was perceived merely as an operational cost to avoid regulatory sanctions and legal risks. Today, companies that adopt robust compliance strategies go beyond risk mitigation, gaining a significant competitive edge, especially in highly regulated sectors such as cross-border payments, fintech, foreign exchange markets, cryptocurrencies, open banking, and more.
Adhering to ethical standards not only mitigates legal risks but also strengthens a company’s brand and credibility. Compliance plays a vital role in helping organizations identify, assess, and manage a wide range of risks, including financial, reputational, and operational risks.
For businesses operating in highly regulated markets, compliance is no longer just about avoiding penalties. Instead, it serves as a strategic opportunity to access new international markets, build a more resilient operation, and stand out from the competition.
But how have these regulations evolved, and what do companies need to know to turn compliance into a strategic advantage? Let’s explore that below.
Challenges and the need for compliance in highly regulated sectors
Some sectors operate under strict regulations due to the significant economic and social impact their activities can generate. Globally, companies in SaaS, investment brokerage, fintech, and payment services are at the forefront of regulatory scrutiny.
For investment brokerages, strict regulations ensure operational security and transparency for investors. SaaS companies, on the other hand, face growing requirements related to data protection and privacy, in line with legislation such as the GDPR (General Data Protection Regulation) in Europe and the LGPD (Lei Geral de Proteção de Dados) in Brazil.
In the fintech and cross-border payment space, regulations go beyond preventing financial crimes, focusing on international rules that ensure security and transaction transparency. Foreign exchange markets demand high compliance with local and international regulations to prevent fraud, following guidelines from institutions like the Central Bank of Brazil and the FATF (Financial Action Task Force).
The cryptoassets sector remains one of the most complex from a regulatory perspective due to its decentralized nature and fast-evolving technology. In Brazil, the 2024 Cryptoassets Regulatory Framework, outlined by Law No. 14.478/2022, established clear criteria for exchanges and service providers, reinforcing market security and transparency.
Why is high regulation essential?
Regulation is more than just a control tool, it plays a crucial role in financial security and business protection. In high-risk sectors a lack of compliance can lead to severe financial consequences and business disruption. Here are some real-world examples:
- Anti-Money Laundering (AML) prevention: According to the Inter-American Development Bank (IDB), global money laundering transactions amount to $1.5 to $2 trillion annually, representing 2% to 5% of the world’s GDP (Gross Domestic Product). Stricter regulations help reduce this impact, protecting markets and companies from being exploited for illicit purposes;
- Security in the cryptoassets market: In 2023, illicit activities involving cryptoassets reached approximately $20.6 billion, according to the Chainalysis Crypto Crime Report 2023, highlighting the importance of stricter regulations to limit money laundering in this sector;
- Penalties for non-compliance: Financial institutions have faced significant penalties for violating AML regulations and sanctions. In 2023, Binance was fined $50 million in Canada for breaches related to reporting and compliance obligations in the crypto sector (Cointelegraph);
- Data protection in SaaS companies: The growing adoption of data protection laws such as GDPR and LGPD has shifted the focus to data security. Companies failing to comply with these regulations face fines of up to 4% of global annual revenue, pushing SaaS providers to invest heavily in compliance to avoid sanctions and maintain customer trust;
High regulation, though demanding, protects both consumers and businesses, promoting a safer and more transparent ecosystem. For companies, compliance is not a barrier but an opportunity to grow safely, gain stakeholder trust, and position themselves competitively in increasingly challenging markets.
Key regulatory updates and their impact on businesses
In recent years, several important regulatory developments have reshaped the financial services and digital assets industries. Here are some of the most relevant ones:
- Brazil’s cryptoassets regulatory framework (Law No. 14.478/2022): Effective in 2024, it introduced clear rules for the operation of crypto exchanges and custodians, focusing on AML prevention and operational security. Companies in the sector must now register with the Central Bank and comply with strict regulatory requirements;
- Implementation of open finance: Following the success of the initial Open Banking phases, Open Finance expanded data-sharing to include insurance, pensions, and investments. Resolution No. 5 by the Central Bank and the National Monetary Council introduced robust cybersecurity and data protection requirements;
- FATF guidelines on virtual assets: The FATF (Financial Action Task Force) reinforced the Travel Rule, requiring virtual asset service providers to share detailed information about senders and recipients for transactions above certain thresholds;
- New international payment regulations: The Central Bank of Brazil updated its regulations to offer greater flexibility for fintechs entering the cross-border payment space. However, companies must comply with rigorous financial crime prevention standards and continuous operational monitoring.
These changes emphasize the need for agile and up-to-date compliance practices. Any oversight can result in license revocation, substantial fines, or severe market restrictions. Companies that invest in compliance not only mitigate risks but also gain a competitive advantage in an increasingly dynamic regulatory environment.
Agile and strategic compliance: unlocking competitive advantage
In a constantly evolving regulatory landscape, having an agile compliance infrastructure makes all the difference. At FacilitaPay, compliance is not just a requirement, it is a fundamental part of our business strategy. Our specialized team continuously monitors regulatory changes to ensure our partners stay ahead of market updates.
By offering integrated solutions and adaptive compliance, we help our clients navigate complex markets securely and efficiently. This means operating with confidence, reducing risks, and seizing new opportunities on a solid regulatory foundation.
International growth with security and transparency
The evolution of regulations in highly supervised sectors shows that compliance is not a barrier but a catalyst for innovation and international expansion. Companies that invest in proactive compliance strategies not only protect their business but also gain a competitive edge in increasingly challenging markets.
If your company is looking for ways to stand out in a highly regulated market, contact our experts and discover how we can help you turn compliance into a strategic advantage
