Chile: Securities-Related Laws

Chile is incentivizing cryptocurrency firms and local exchanges. In fact, the Chilean government in 2015 helped fund and launch the first Bitcoin exchange to pesos. Although not the biggest market, among the four main players in Chile:, ChileBit, TradeBTC, and Yaykuy they have around 20,000 clients already and move around 7 million USD per month. Presently, cryptocurrencies are entirely unregulated in Chile, and are not legally recognized as a means of exchange or securities. But there are also no impediments for people to conventionally accept to exchange goods or services for crypto actives.

The Chilean central bank president, Mario Marcel, has made comment seemingly in favor of developing a regulatory apparatus for virtual currencies [1] to regulate and monitor activities pertaining to Chile’s cryptocurrency sector.

The apparent openness on the part of the Chilean administration to developing a regulatory apparatus for cryptocurrencies comprises a significant a departure from the recent banking embargo experienced in Chile.

In March, two Chilean cryptocurrency exchanges, Buda and Crypto Mkt, requested clarity on the position of the country’s banking association regarding virtual currencies after numerous banks suddenly terminated their accounts with the exchanges. At the beginning of April, both exchanges, in addition to a third exchange, Orionx, received notice from Banco del Estado de Chile (Banco Estado) that their accounts with the country’s sole state bank would soon be closed.

In mid-April, the Buda appealed against the account suspensions, and was successful, with Chile’s anti-monopoly court ordering two of ten banks to re-open Buda’s accounts.

Currently Chile is in regulatory limbo with no clarity on when regulations will be put in place, or notice for future security measures for crypto exchanges.


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