Innovation in the Brazilian financial sector is an example of how regulation can, when well planned, encourage growth.
Dozens of yellow taxis parked in front of the City Council in protest against ride-hailing apps
Credits: Fabio Rodrigues-Pozzebom / Agência Brasil
The creation of the Regulatory Sandbox by the Central Bank allowed financial startups to test new products and services in a controlled environment , with flexible rules, but still safe for the consumer. This approach not only attracted more investment to the sector, but also served as a model for other segments.
Urban Mobility
Companies like Uber and 99 faced a regulatory battle in their early belgium mobile database stages in Brazil. The lack of a specific legal framework generated friction with taxi drivers and regulators, resulting in a series of municipal and state bans .
Subsequently, the establishment of a clearer regulatory framework helped to consolidate these platforms and integrate innovative transport services into cities, although debates over the regulation of the sector continue.
Data protection
The General Data Protection Regulation (GDPR) is an example of how regulation can proactively keep pace with innovation. The European Union has created a set of rules to ensure citizens’ privacy , applying them to all companies that process data from European users, regardless of where they are located.
With this, the GDPR managed to balance protection and innovation, serving as inspiration for legislation in other countries, such as the General Data Protection Law (LGPD) in Brazil .
Faced with the challenges posed by technological disruption, some regulators have adopted more dynamic approaches to keep pace with innovation. Key practices include.