WILLEMSTAD – The MAN faction in the Parliament of Curaçao has voiced strong criticism of a new draft national ordinance aimed at regulating payment service providers. While the party welcomes regulation of the sector, it argues that the proposal lacks essential explanations, fails to include an evaluation of current laws, and could leave consumers unprotected against high-interest lenders.
Missing Context and International Alignment
According to the party, the explanatory memorandum leaves out details on key provisions of the bill and does not clarify how the proposed legislation aligns with international and European guidelines. MAN questioned why the government is moving forward with new legislation without first assessing the effectiveness of existing rules.
Questions on Feasibility
The bill assigns a central supervisory role to the Central Bank of Curaçao and Sint Maarten (CBCS). However, MAN doubts whether the regulator has the capacity, resources, and expertise to take on these additional responsibilities. The faction also pressed for clarification on what lessons were learned from previous oversight of cryptocurrency service providers and how those lessons would apply to payment platforms.
Local Businesses at Risk
Another key concern is the potential impact on local companies such as Sentoo, CX Pay, Girasol, Ictual, Profound, and IBIS. MAN asked whether these Curaçao-based firms were consulted in the process and whether the proposed administrative burdens would be disproportionately heavy, potentially threatening their survival.
Consumer Protection and Credit Risks
The faction also warned of the risks surrounding short-term credit. Under the proposed law, digital service providers would be permitted to issue loans, provided they are repaid within 12 months. MAN stressed this could worsen Curaçao’s already fragile debt situation.
Research by the CBCS shows that 88 percent of household income on the island is currently spent on debt repayment. “Allowing extra borrowing through digital channels could push families further into financial distress,” MAN argued.
The party is demanding guarantees that consumers will be protected from excessive interest rates and over-indebtedness, insisting the law must contribute to greater financial stability, not further impoverishment of households.
The debate underscores the tension between fostering innovation in financial services and ensuring robust consumer protection in Curaçao’s evolving digital economy.
