Chile

Summary

Chile has developed regulation for crypto, mainly through the Financial Market Commission (Comisión para el Mercado Financiero), in particular by means of Law 21521 (2023). The Central Bank is also involved, particularly regarding stablecoins, and it aims to launch its own CBDC.

Timeline

The Chilean Internal Revenue Service (SII) issued Notice No. 963 in May 2018, requiring declarations for income from cryptocurrency transactions on tax forms. In February 2023 Chile's Fintech Law began regulating various fintech services related to crypto-assets including overseeing exchanges and issuers, and permitted digital representations backed by money as means of payment. The law tasks the Financial Market Commission (CMF) with overseeing crypto services, including exchanges and investment advice, and grants the Central Bank authority to establish prudential regulations for qualifying crypto-assets. Chile is ranked 52nd in crypto adoption globally.

Taxation

Transactions involving crypto assets are subject to tax regulations: individuals pay Global Complementary or Additional Tax on profits from buying and selling crypto assets, while legal entities are subject to general taxes such as First Category Tax. Providers of crypto-related services must apply Value Added Tax (VAT) to their commissions, and crypto exchanges must fulfil various tax obligations, including filing Annual Affidavit No. 1891.

AML / CFT

Virtual asset service providers must comply with the Anti-Money Laundering Act (Law No. 19.913) and corporate criminal liability regulations (Law No. 20.393), which entail requirements such as effective KYC procedures, reporting of suspicious and cash transactions, and the appointment of a compliance officer.

Consumer protection

Chile has a general consumer protection law, Law No. 19.496, which is also applicable to crypto-asset exchanges and service providers.

Licensing

Crypto-asset exchanges must register with and be authorized by the CMF before operating. The CMF assesses compliance with information and disclosure obligations, corporate governance, risk management, operational capacity, minimum equity, and specific service-related requirements.