Ecuadorian banks and financial markets are highly regulated both by the government and constant internal and external audits thanks tfollowing sustained financial setbacks forin the economy has happened uring the last 20 years. Another important factor to mention is that the country currently does not have its currency and is leveraged ion the US dollar for the exchange of goods, securities or services which have made the economy dependent on the global situation of the dollar as well as ond decisions of neighboring countries such as Peru or Colombia if they devaluation capacity. In this environment, a year ago, the Ecuadorian government launched a year ago the appearance of a virtual currency called "electronic money" that would reduce the high costs of importing dollars into the country. Under this scenario, the Central Bank ( a state agency) is responsible for the centralization of transactions made with electronic currency.

The estate crehates a highlvery strict regulations concerelated toning the management of electronic money and how all the players should be involved generated, leaving secluded private banking from the management platform which also creates a risk of manipulation by the sState. With that as a preamble, the idea of sending money to people withount a banked peaccopleunt using the ATM's network of banks and cell phone companies (also regulated) not specifically included in the regulation, the involvement of an intermediary value added, making anon FINTECH have unregulated space operation. However, this can change from one moment to another, which creates uncertainty because it is possible that such intermediaries can not do their work; unless the FintechINTECH forms part of the financial system regulated by the Superintendency of Banks. Another option is this kind of operation will be prohibited by the state, or the operational cost will be higher than expected revenues.

On the other hand, in countries like Peru, regulations are clearly defined, and participants, who are part of the financial ecosystem, hasve clear rules from the beginning, know how the law must be applied, and their role is clearly defined. That allows delineating the growth strategy in the short, medium and long term. It also hagives clarity into the financial model and how to generate a return on investment, capacity growth, costs and general administrative policies.
Clearly defined rules eliminate the uncertainty, allowing managed risk and delineate the boundaries of products and services to offer. However, in the unbanked sector, there are other challenges given the difficulty of KYC. At this scale, money laundering and trafficking of illicit substance micro, highly regulated in higher value transactions, they should be observed carefully in movement patterns of small amounts of money in bulk.