Name
Global FinTech Guide
Country _ Name
Chile
SectionTitle
DLT and cryptocurrencies
Body
FinTechs belonging to this category offer financial services using crypto currencies. This category also includes FinTechs utilising blockchain and distributed ledger technologies (DLT) upon which Bitcoin and Ethereum are based, among others. FinTechs develop and do research in this field in order to create new services – e.g. crypto currency exchange markets, wallet providers, NFTs-related services, new payment services, "smart contracts" or new clearing and settling services.

Introduction

Attitude of the country towards financial services using crypto currencies

FinTech Law introduces the concept of virtual financial assets or crypto-assets, defining them as “digital representations of units of value, goods or services, other than money, whether in domestic currency or foreign exchange, which can be transferred, stored or exchanged digitally.”

The foregoing means that the FinTech Law considers crypto-assets to be financial instruments and, therefore, they will be subject to regulation by the CMF. In this regard, it should be noted that the FinTech Law does not regulate the issuance of crypto-assets or those who provide services other than those covered by the Law. For the purposes of the FinTech Law, a financial instrument is defined as "any security, contract, document or incorporeal good, designed, used or structured for the purpose of generating monetary income, or representing an outstanding debt or a virtual financial asset. The following shall be considered financial instruments for the purposes of this law: securities not registered in the Register of Securities and Foreign Securities of Law No. 18.045, derivative contracts, contracts for difference, invoices, among others, regardless of whether their support is physical or electronic. Securities offered publicly shall not be considered financial instruments for the purposes of this law, nor shall money or currency, regardless of whether their medium is physical or digital.”

To date, two (2) virtual currencies have been created in Chile: (i) Chaucha (CHA – https://chaucha.cl/) and (ii) Luka (LUK – no longer in circulation ), and without actually being a cryptocurrency, the WEA token (Chilean Ethereum token).

In March 2018, three (3) Chilean cryptocurrency exchanges saw heavy press coverage due to a banking blockade whereby either their accounts were shut down by their current banks and other banks refused to open new accounts. In April 2018, the affected exchanges filled actions against the banks before Chile's Competition Court and Appeals Courts who determined that the banking accounts should be reopened. Tax authorities have also stated that on matters relating to the taxation of income derived from the purchase and sale of cryptocurrencies it's necessary to declare and pay taxes on these operations, as the profits obtained from the purchase and sale of cryptocurrencies are taxable income.

https://www.sii.cl/normativa_legislacion/jurisprudencia_administrativa/ley_impuesto_renta/2018/ja963.htm.

In 2021, the Chilean Central Bank announced the evaluation of the possibility of issuing a Chilean cryptocurrency (stablecoin). https://cooperativa.cl/noticias/economia/divisas/banco-central-evaluara-la-emision-de-una-criptomoneda-chilena/2021-09-23/105115.html; https://www.reuters.com/business/finance/chile-cenbank-decide-roll-out-digital-currency-2022-2021-09-27/ .

In 2024, the Chilean Central Bank published the second report of the “Central Bank Digital Currency Issuance in Chile”, to continue advancing in the conceptual exploration, incorporation of views of different actors from the public and private sectors and the experience of other countries in the issuance of an official digital currency (“Moneda Digital de Banco Central” – MDBC). In this report, the Chilean Central Bank concludes the decision to continue and deepen the process of exploring an MDBC and complement its theoretical lines of research with instances of applied exploration. This decision should in no way be understood as a commitment to issue an MDBC in the future (https://www.bcentral.cl/areas/observatorio-tecnologico/exploracion-de-monedas-digitales-de-banco-central).

Legal affairs

Obligations and requirements to provide financial services using crypto currencies described above

There is no specific regulation regarding the issuance of virtual currencies in Chile. Accordingly, and apart from general rules applicable to service providers (such as initiation of activities before the Chilean Internal Revenue Service), there generally are no specific license, minimum capital, or solvency requirements for cryptocurrency providers. Nevertheless, only those registered in the Register of Financial Service Providers administered by the CMF may engage professionally in the provision of crowdfunding platform services, alternative transaction systems, intermediation of financial instruments, order routing, credit advice, investment advice and custody of financial instruments. The legal entities registered in this Register of Financial Service Providers may provide one or more of the services indicated above, subject to compliance with the requirements and demands set out in the FinTech Law for each service provided, and may also carry out any additional activities authorized by the CMF by means of a general rule (Norma de Caracter General).



Additional comments regarding the legal situation for financial services using crypto currencies or what FinTech’s must be aware of in this business area

N/A



Economic conditions

Market size for financial services using crypto currencies and biggest companies in this business area
According to information on market insights provided by www.statista.com for 20242025, Chile’s expected revenues for 2025 in cryptocurrencies will amount to USD 558.6 million, being the average revenue per user USD 93.6(https://www.statista.com/outlook/fmo/digital-assets/cryptocurrencies/chile ).

Transactions values are not readily available.

Additional comments regarding the economic situation for financial services using crypto currencies or what FinTech’s must be aware of in this business area

According to information highlighted by the Internal Revenue Service, those who operate as intermediaries in these types of transactions with cryptocurrencies must also comply with their tax obligations.

(https://www.sii.cl/destacados/renta/2024/economia_digital.html#Orientaci%C3%B3n_Criptomonedas)



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