Crypto Regulations in Chile: Framework, Oversight, and Compliance Rules for Crypto Investors

Chile’s taken a surprisingly forward-thinking approach to crypto regulation compared to much of Latin America. There’s a clear legal framework here, making crypto trading and investment not just possible but pretty safe, thanks to strict oversight. The goal? Protect regular folks and keep financial crime in check.

Chile’s main cryptocurrency regulation is the Fintech Law (Law No. 21.521). It kicked in January 2023 and lays out rules for digital assets, licensing, and consumer protection. The Financial Market Commission (CMF) keeps an eye on crypto service providers, while the Central Bank of Chile handles payment-related digital currencies. The Central Bank even rolled out its own central bank digital currency (CBDC) to support crypto transactions.

Things keep changing, too. In 2025, new rules like the Travel Rule require crypto platforms to identify users for transactions over $1,000 USD. Almost 19% of Chileans are already using crypto, and that number’s only going up. If you’re involved in the Chilean crypto scene, you need to understand these rules.

Key Takeaways

• Chile’s Fintech Law makes crypto legal, but providers have to register with the government.

  
  

• Two main agencies are in charge: the Financial Market Commission (CMF) handles licensing, and the Central Bank regulates payment currencies and the CBDC.

  
  

• Crypto transactions can get hit with capital gains tax (0-40% for individuals), plus special tax rules for mining and staking.

Core Regulatory Framework for Crypto Regulations in Chile

Chile’s crypto regulation really centers on Law No. 21.521. This law sets out licensing requirements (via the CMF), Central Bank oversight, and tax obligations enforced by the SII.

Overview of Law No. 21.521 (Fintech Law of Chile)

Law No. 21.521—Chile’s Fintech Law—officially recognizes crypto-assets as legit digital finance tools.

This law tries to balance innovation with consumer protection. It’s not just about letting new tech run wild; it’s about making sure people don’t get burned.

The Fintech Law lays out rules for exchanges and wallet providers. These companies have to meet strict operational and security standards.

Some key points:

• Crypto-assets are legally recognized

  
  

• Service providers must register

  
  

• There are consumer protection rules

  
  

• AML compliance is required

The law also lets new payment methods—like stablecoins—into the market, but only if they’re backed by fiat and follow Central Bank rules.

Key Regulatory Authorities: CMF, Central Bank of Chile, and SII

Three main agencies handle crypto in Chile, each with its own turf.

The Financial Market Commission (CMF) supervises exchanges and wallet providers. It makes sure they’re registered and following the rules.

The Central Bank of Chile deals with the money side of things—regulating stablecoins, payment systems, and working on the CBDC (digital peso) project.

The Internal Revenue Service (SII) takes care of taxes and reporting. It ensures people and companies pay up when they should.

Registration and Licensing Requirements for Crypto Service Providers

Exchanges and wallet providers can’t just show up and start operating. They have to register with the CMF, which means handing over a bunch of paperwork about how they’ll run things and keep users safe.

Providers need to show they’ve got enough capital, solid risk management, and clear procedures for protecting customers.

To register, you need:

• A detailed business plan

  
  

• Proof you have enough money in reserve

  
  

• Security documentation

  
  

• A risk management plan

Once licensed, you can’t just relax. The CMF expects regular reports and audits to make sure you’re still following all the rules.

Providers also have to be upfront about their fees and risks. Good customer service and a way to resolve disputes are mandatory.

Taxation, Reporting, and Compliance Obligations

The SII expects everyone—individuals and companies—to report all their crypto transactions. No sneaking around.

Profits from crypto are taxed as capital gains. Service providers need to keep detailed records for tax time.

You’re expected to:

• Report transactions to the SII

  
  

• Implement Know Your Customer (KYC) checks

  
  

• Follow anti-money laundering (AML) rules

  
  

• Report suspicious activity

AML and counter-terrorism measures have to be airtight. That means verifying customers and running regular audits. If you mess up, you could lose your license or get slapped with big fines.

Oversight, Enforcement, and Market Activity

Chile’s regulators don’t mess around. They enforce strict AML and KYC standards, demand solid consumer protections, and hand out penalties if providers fall short. Meanwhile, big exchanges are helping drive crypto adoption all over the country.

AML and KYC Standards

The CMF requires all Digital Asset Service Providers (CASPs) to follow strict anti-money laundering and know-your-customer rules. These match up with international standards.

CASPs need to verify customers—collecting IDs, proof of address, and where the money’s coming from. Usually, this process takes a day or two for individuals.

Main AML requirements:

• Monitor transactions for suspicious activity

  
  

• Report anything fishy to the authorities

  
  

• Keep records for at least five years

  
  

• Undergo regular compliance audits

Banks and financial institutions have to report big transactions to the Financial Intelligence Unit. This covers both single large transactions and daily totals.

For customers who seem high-risk, CASPs need to do extra checks, keep up-to-date sanctions lists, and make sure no one’s on a prohibited list.

Consumer Protection Measures and Penalties

The CMF has set up a strong consumer protection framework for crypto users. For example, companies have to keep customer funds separate from their own.

If a provider breaks the rules, fines can range from $50,000 to $500,000. Repeat offenders could lose their license.

Consumer protection includes:

• Mandatory insurance for customer funds

  
  

• Clear risk and fee disclosures

  
  

• Dispute resolution options

  
  

• Regular financial reporting

CASPs must show users exactly what fees they’ll pay and warn them about volatility. Before opening an account, users get info about possible losses.

Fraud and market manipulation aren’t just frowned upon—they’re criminal. The law comes down hard on scams and unauthorized investment schemes.

Role of Leading Market Participants and Adoption Trends

Big exchanges like Buda.com have helped legitimize Chile’s crypto market. They work with regulators and build trust with users.

The Central Bank keeps working on its digital peso project, hoping to modernize payments and help people in rural areas access financial services.

Market growth stats:

• Crypto adoption could hit 31.76% by 2026

  
  

• Market size might jump from $243.5 million to $590 million

  
  

• Licensed exchanges are seeing steady user growth

Major players are pouring money into security, customer support, and regulatory reporting.

Banks and other institutions are looking into crypto custody and investment products for their clients. Retail use is growing too, especially with mobile payments and remittances. Sending money across borders with crypto is catching on among Chileans working abroad.

Frequently Asked Questions (FAQs)

Chile’s got clear rules for crypto through its Fintech Law. The government treats digital assets as taxable property, not currency.

What is the legal status of cryptocurrencies in Chile?

You can legally buy, sell, and hold crypto in Chile. The government treats digital assets as property.

The Central Bank doesn’t see crypto as legal tender or foreign currency, so you can’t use it for all debts and obligations.

Chile’s main crypto rule is the Fintech Law (Law No. 21.521), which started in January 2023 and set the stage for digital asset innovation.

How do Chilean authorities classify cryptocurrencies for tax purposes?

Chilean tax authorities call crypto an asset, not a currency. That means capital gains tax applies.

If you sell crypto, you could pay anywhere from 0% to 40% in capital gains tax, depending on your income.

Mining is taxed differently. Individual miners pay 25%, and mining companies pay 27% on their crypto income.

Trading one crypto for another? That’s a taxable event. Same goes for buying stuff with crypto.

Has the Chilean government implemented any specific laws targeting cryptocurrency trading?

The Fintech Law is Chile’s main rule for crypto trading. It’s designed to encourage innovation but also protect consumers.

In July 2025, Chile rolled out the Travel Rule. Platforms now have to identify senders and receivers for transactions over $1,000 USD.

Circular No. 62 came into play in June 2025, focusing on money laundering, terrorism financing, and suspicious transactions.

Chile hasn’t banned crypto trading. Instead, it’s set up rules to make things safer and more transparent.

Are Chilean banks allowed to provide services to cryptocurrency businesses?

Yes, Chilean banks can serve crypto businesses—as long as those businesses register with the CMF and follow the rules.

Banks have to stick to anti-money laundering standards, report suspicious activity, and verify customer identities.

The Central Bank and CMF both have a say in payment-related crypto services. Banks might need approval for certain digital asset services.

Banks have become more open to crypto since the Fintech Law, but each one sets its own policies for crypto clients.

What measures has Chile taken to prevent money laundering in cryptocurrency transactions?

Chile requires crypto providers to register with the CMF, go through background checks, and meet compliance standards.

The Travel Rule means platforms must collect identity info for big transactions. For transfers over $1,000, exchanges have to share sender and receiver details.

Circular No. 62 demands close monitoring of suspicious crypto activity. Businesses need to analyze transactions and report anything that looks like money laundering.

Crypto businesses have to follow the same AML rules as banks, including customer verification and keeping detailed records.

Are there any licensing requirements for cryptocurrency exchanges in Chile?

Chile doesn’t offer a specific license just for crypto exchanges. Instead, if you want to run an exchange, you’ve got to register as a Crypto Asset Service Provider (CASP) with the CMF.

Once you send in your registration, the CMF usually takes about 30 days to look it over. Getting fully authorized? That might stretch out to six months.

Exchanges need to meet certain financial and security standards. They also have to give regulators pretty detailed info about how they operate.

CASPs have to follow consumer protection rules and make sure they’re upfront with customers—think clear terms of service and straightforward risk warnings.