Chile moved closer to establishing a comprehensive regulatory framework for digital financial services after the Chamber of Deputies approved the long-awaited Fintech Bill, which now awaits the signature of President Gabriel Boric. The legislation, which passed without opposition in the Senate, is expected to become law imminently and will bring significant changes to how cryptocurrency exchanges and other fintech entities operate in the country.
Key Provisions: Defining and Regulating Crypto Assets
The Fintech Bill defines crypto assets as "a digital representation of value used to exchange money, goods, or services." It extends the oversight authority of the Financial Market Commission (CMF) to include cryptocurrency exchanges and custody providers, imposing mandatory registration, anti-money laundering (AML) compliance, and customer protection standards. Previously, these entities operated in a legal gray area, leading to frequent disputes between banks and crypto companies. The bill also establishes a sandbox regime for innovative fintech products, allowing controlled testing of new services under CMF supervision.
Finance Minister: Pro-Competition and Inclusive
Finance Minister Mario Marcel emphasized that the bill is designed to spur competition. "I want to stress that it is a project that does not seek to favor a particular sector; it seeks to promote competition and allow institutions different from our traditional banking or traditional financial retail to compete by offering cheaper financial services to the public," Marcel said. He further noted that the law would lower barriers for new entrants, including fintech startups and alternative finance companies, ultimately benefiting underserved populations.
Industry Reactions: Certainty and Investment
The bill's approval has been hailed by major players in the Chilean crypto ecosystem. Samuel Canas, legal manager of Buda — one of the country's largest cryptocurrency exchanges — welcomed the development. "The new regulations provide greater certainty for the growth of this industry, attracting more investment and defining a specific legal framework that did not exist until now," Canas stated. He also believes that the law will help individuals without access to traditional banking to gain financial inclusion through fintech and alternative finance services.
Background: From Legal Battles to Legislative Clarity
Chile has been the scene of several court battles between banks and crypto exchanges over account closures and access to banking services. In 2020, the Supreme Court ruled in favor of Buda, ordering banks to reopen its accounts. However, the lack of a clear legal framework created ongoing uncertainty. The Fintech Bill aims to end this controversy by providing a statutory basis for crypto operations. Chile thus joins a growing list of Latin American countries — including Brazil, El Salvador, and Mexico — that have either passed or are considering dedicated digital asset regulations.
President Boric has not announced a specific timeline for signing the bill into law, but the legislative process is considered complete. Once signed, the CMF will have 12 months to issue implementing regulations. Industry observers expect the new regime to attract international fintech companies and accelerate the growth of Chile's digital economy.