Canada    FinTech Guide    Chapter 4    Dominican Republic


4. Trading Platforms / Social Trading Platforms / Signal Following
Dominican Republic  Dominican Republic

There are no social or political reservations towards trading, social trading or signaling platforms. The climate is indifferent.



Legal Affairs


The only regulation referring to the operation of electronic trading platform corresponds to the operation of foreign currency exchange electronic platforms.

For that matters the Monetary Board issued a regulation for the operation of currency exchange platforms that requires entities wishing to provide said services be organized as sociedades anónimas under Dominican law and be registered as stock exchanges before the Superintendence of Securities. The minimum capital required is DOP 50,000,000.00 (approx. USD 1,012,145.75), and an additional 20% legal reserve, and to request authorization by the Monetary Board.



Economic Conditions


The only securities trading platform to date is the Dominican Republic Stock Exchange, S.A.

The official statistics for revenues, brokered investments and customers are not published. However, according to official statistics from the Superintendence of Securities, CEVALDOM has under its custody DOP 791,575,187,421 and USD 1,313,473,955, up to 30 April 2017.

In addition we do know of the existence of at least one currency exchange platform and one factoring platform operated by a financial institution, although statistic information is not available.



Miscellaneous


Although there are no other specific regulations for operation of other electronic trading platform pursuant to Law 126-02 on E Commerce, Electronic Documents and Digital Signature., electronic trade of goods and services in general is valid in the Dominican Republic, subject to any special regulation that may be established for a specific sector.

In order to operate a securities trading platform, companies must be organized as sociedades anónimas under Dominican law and be registered as stock exchanges before the Superintendence of Securities. The minimum capital required is DOP 50,000,000.00 (approx. USD 1,012,145.75), and an additional 20% legal reserve.

As for other trading platform, although there is no specific regulation, we have knowledge of the operation of at least one factoring trading platform, which operates legally as per the provisions of Law 126-02 on E Commerce, Electronic Documents and Digital Signature.



Contributing Authors

Jiménez Cruz Peña

José Cruz Campillo
Santo Domingo, Dominican Republic

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Chapter Index:


1. Payment Services / Mobile Payment

2. Asset and Portfolio Management

3. Consulting and Broking Services / Robo-advisory / Auto-trading

4. Trading Platforms / Social Trading Platforms / Signal Following

5. Crowdfunding / Crowdinvesting / Crowdlending

6. Virtual Currency - Bitcoin

7. Loan Services / Factoring / Loan Broking / Finetrading

8. Online Banking Services

9. Analytics and Research / Data Management / Risk Management

10. Accounting

11. Identification

12. Online-pawning

13. InsurTech

14. RegTech

15. Initial Coin Offerings (ICOs)

Disclaimer:
The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: 1 May 2018