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A fintech bill, which seeks to regulate fintech and cryptocurrency-related activities in Chile, has been approved by the Chamber of Deputies of Congress, making it ready to be sanctioned by the President of Chile, Gabriel Boric. According to individuals in the sector, the bill is aimed at stimulating innovation and competition in an unregulated market.
A fintech-related bill, which seeks to bring clarity to institutions that offer digital and cryptocurrency-based services, has been approved by the Chamber of Deputies of the Congress of Chile. The project, which was approved without a vote against it in the Chilean Senate, is now in the hands of President Gabriel Boric, who must sign it for it to be sanctioned.
The bill includes in its scope the supervision of cryptocurrency exchanges, and defines cryptocurrency assets as a “digital representation of exchange units of money, goods or
services.” It also expands the regulatory reach of the Financial Market Commission to include oversight of cryptocurrency exchanges and cryptocurrency custody providers.
The Chilean finance minister, Mario Marcel, noted that this bill was aimed at attracting competition in a sector that until now was considered part of a gray, unregulated area. He stated:
I want to emphasize that it is a project that does not seek to favor a particular sector, it seeks to promote competition and allow institutions different from our traditional banking or traditional financial retail to compete by offering cheaper financial services to the public, it is a pro-competitive project.
The approval of the bill has been positively received by companies and personalities in the sector in Chile, who believe the project will attract new investments into the country and will allow companies already in operation to regulate their status. Chile has been home to several legal battles between banks and cryptocurrency companies recently, and this law aims to avoid more controversies in that aspect.
Samuel Canas, legal director of Buda, one of the largest stock exchanges in Chile, celebrated the approval of the law. He declared:
The new regulations provide greater certainty for the growth of this industry, attract more investments and define a specific legal framework that did not exist until now.
Canas also believes that if sanctioned, this bill will help people without access to the traditional financial system to access financial instruments provided by these fintech and alternative finance companies.
What do you think of the fintech bill that was recently approved in Chile? Tell us in the comments section below.
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