Chile Has New Crypto, Fintech Regulation Bill

Chile’s very own Minister of Finance named Felipe Larrain has created a bill designed to regular all cryptocurrencies. The bill is also expected to cover other financial technologies. Here is everything about it in a nutshell.

The Bill Explained

According to the official report, the aforementioned minister has already forwarded the bill to the Congress from the United States. By essence, it has taken into account all the regulatory needs of business models. And rather than implementing a blanket rule in the market, the bill is aimed at imposing regulations in a much proportional way.

Larrain, describing the bill, said that it will take into consideration the many forms taken by a variety of business models. And considering the fact that these platforms are capable of providing services unique from each other, the regulation has the ability to apply requirements “proportionally.” Through the bill, cryptos will be regulated in a way that they in tune with the type of service provided, as well as the risks associated with the user and the financial market.

The report further added that the digital currency industry in the South American country has shown some potential. And while Chile has managed to be like other regions across the world, it does not necessarily have proper rules that can regulate the said industry.

Defeating The Risks

Larrain also went to discuss the risks associated with cryptocurrency trading. For him, the new rules – if passed by the government – can help mitigate illegal activities involving the use of digital currencies.

The minister added that apart from mitigating these risks (e.g. terrorism, money laundering, etc.), the bill is more than capable of increasing the “legal certainty” with which these platforms operate. At the end of the day, the bill just wants to protect the risks associated with the utilization of digital currencies.

A Triumph For Crypto Exchanges

It holds true that the Chilean government has minimal interference in the country’s crypto space. Nonetheless, banks in the country are playing a bit hostile when it comes to crypto-related businesses. Take for example last year, when banks decided to cut all of their ties with crypto exchanges operating within the country’s jurisdiction.

The crypto exchanges, however, decided to come up with a consortium and went to court to fight off the decisions from these banks. In fact, earlier this year, an anti-monopoly court was successful in hearing the case and decided to rule in favor of these exchanges.