Chile is one step away from enacting a major fintech framework that could reshape how cryptocurrency businesses operate in the country. A bill designed to regulate fintech firms and crypto-related activities has now been approved by the lower chamber of Congress, leaving it ready for President Gabriel Boric to sign into law.
The measure is widely seen as a milestone for a market that has long operated with limited legal clarity. For crypto exchanges, custody providers, and other digital financial service firms, the bill could establish a more predictable regulatory environment while signaling that Chile is seeking to support innovation without leaving the sector entirely outside formal oversight.
A broader legal framework for fintech and crypto
According to the bill’s provisions, the new framework is intended to provide clarity for institutions offering digital and cryptocurrency-based services. One of the most notable features is that it explicitly includes cryptocurrency exchanges within its scope. It also defines crypto assets as a “digital representation of exchange units of money, goods or services,” giving regulators a formal reference point for how these instruments should be treated.
The legislation would also expand the powers of Chile’s Financial Market Commission, enabling it to supervise not only exchanges but also cryptocurrency custody providers. That matters because custody has become a core part of the digital asset ecosystem, especially as investors and companies increasingly look for secure and regulated ways to hold crypto assets.
Before reaching this final stage, the bill had already moved through the Senate, where it reportedly passed without any votes against it. With approval now secured in the deputy chamber as well, the legislative process is effectively complete, pending presidential sanction.
Government frames the bill as pro-competition
Chilean Finance Minister Mario Marcel presented the bill as a pro-competition initiative rather than one designed to favor a particular segment of the market. His comments suggest the government sees the legislation as a way to open the financial system to a wider range of service providers beyond traditional banks and legacy retail finance institutions.
Marcel emphasized that the goal is to allow alternative institutions to compete by offering cheaper financial services to the public. In that sense, the bill is not only about supervision and compliance. It is also an attempt to create a more level playing field in a sector that, until now, has often been viewed as a regulatory gray area.
That framing is important. In many jurisdictions, digital asset regulation is discussed primarily in terms of risk control, enforcement, or investor protection. Chile’s approach, at least as described by officials backing the measure, adds another dimension: using regulation to encourage market entry and competition while reducing ambiguity.
Industry response has been largely positive
Companies and executives in Chile’s crypto and fintech sectors have welcomed the bill’s progress. Their support reflects a common view within the industry that a defined legal framework can attract new investment, reduce uncertainty, and help existing operators regularize their status.
This has particular relevance in Chile, where relationships between banks and crypto companies have been strained in the past. The country has seen judicial disputes involving financial institutions and cryptocurrency businesses, and the new law is expected to help reduce the likelihood of similar conflicts by defining who can operate, under what rules, and under which supervisory authority.
Samuel Canas, legal manager at Buda, one of Chile’s largest exchanges, said the regulations would provide greater certainty for the industry’s growth. In his view, the framework could help bring in more investment while filling a legal gap that has persisted until now. His comments capture a broader industry expectation that legal recognition, even when paired with closer oversight, is preferable to operating in a space where the rules remain unclear.
Potential implications for financial access
Beyond its effect on exchanges and startups, supporters of the bill also argue that the legislation could have a wider social and economic impact. Canas suggested that, if enacted, the new framework may help people who do not have full access to the traditional financial system obtain financial tools through fintech and alternative finance companies.
That point aligns with a recurring argument in favor of fintech regulation across Latin America: clear rules can encourage the growth of non-bank financial services that reach underserved populations. While the bill itself is centered on oversight and legal certainty, advocates appear to believe that regulation could also legitimize newer business models and expand access to financial products outside conventional banking channels.
Why the bill matters for Chile’s crypto market
The significance of the bill lies in its attempt to move Chile’s crypto sector from legal ambiguity toward structured oversight. For exchanges and custody providers, being named directly in legislation reduces uncertainty about whether and how authorities may intervene. For investors and consumers, a defined regulatory perimeter could make the market appear more credible and transparent.
At the same time, the bill does not appear to have been framed as an anti-crypto crackdown. On the contrary, officials and market participants alike have described it as a step that could promote innovation, improve competition, and attract investment. That balance—bringing crypto into the regulatory fold while preserving room for new entrants—will likely be one of the key themes observers watch if the law is signed and implemented.
With the bill now awaiting only President Boric’s approval, Chile stands close to formalizing one of its most consequential policy moves for digital finance. If signed, the law would give crypto exchanges and custody firms a clearer place within the country’s financial system and could mark a turning point in how digital asset businesses are governed in the Chilean market.