Chile

Retail_Trading_Status

Allowed-Regulated High Confidence

Analysis ID: #628
Version: Latest
Created: 2025-12-12 04:03
Run: 84ffd22b...
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Workflow Stage: Step 1

Executive Summary

Retail cryptocurrency trading in Chile is legal and explicitly regulated under the 'Ley Fintec' (Law No. 21.521), which establishes a comprehensive framework for financial technology services. The Financial Market Commission (CMF) serves as the primary regulator, requiring crypto asset service providers (defined as 'Alternative Transaction Systems' or custodians) to register in the Registry of Financial Service Providers (RPSF) and obtain authorization to operate. The framework mandates strict AML/CFT compliance reporting to the Financial Analysis Unit (UAF) and guarantees banking access for crypto firms through objective non-discrimination rules.

Detailed Explanation

Retail cryptocurrency trading in Chile is legal and explicitly regulated, establishing it as one of the most advanced jurisdictions in Latin America for digital asset oversight. The comprehensive framework is anchored by the 'Ley Fintec' (Law No. 21.521), enacted on January 4, 2023, which brings crypto assets and fintech services under formal supervision. The primary regulator is the Financial Market Commission (Comisión para el Mercado Financiero, CMF), which requires all crypto asset service providers—defined as 'Alternative Transaction Systems' or custodians—to register in the Registry of Financial Service Providers (RPSF) and obtain authorization to operate. The transition period for this law ended in February 2025, meaning the market is now fully regulated. The framework mandates that entities providing crypto exchange or custody services must be registered with the CMF, and operating without this authorization is illegal.

The regulatory ecosystem involves several key bodies with distinct roles. The CMF is responsible for registering and supervising virtual asset service providers (VASPs). The Financial Analysis Unit (Unidad de Análisis Financiero, UAF) enforces Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) obligations, requiring exchanges to report suspicious activities. For taxation, the Internal Tax Service (Servicio de Impuestos Internos, SII) oversees the treatment of crypto assets as 'digital assets' or 'intangibles', with profits subject to Capital Gains Tax. The Central Bank of Chile (Banco Central de Chile) retains specific authority to regulate stablecoins as a means of payment, separate from the general asset framework governed by the CMF. Secondary regulation is detailed in Norma de Carácter General N° 502 (NCG N° 502), enacted on January 12, 2024, which sets requirements for registration, authorization, and operation of fintech service providers, including crypto exchanges and custodians.

Important operational and compliance aspects are clearly defined. The Ley Fintec legally guarantees banking access for crypto firms through objective non-discrimination rules, prohibiting banks from arbitrarily closing accounts of crypto businesses; closures must be based on objective, non-discriminatory criteria, addressing a historical friction point. For taxation, profits from crypto assets are subject to standard income tax: Impuesto de Primera Categoría for companies and Global Complementary Tax for individuals, treated as capital gains. Furthermore, the SII requires digital asset service providers to file annual sworn statements (Declaración Jurada 1963) under Circular N° 1963, effective January 1, 2024, reporting their clients' balances and transactions. This structured, multi-agency approach provides a clear and enforceable regulatory environment for cryptocurrency activities in Chile.

Summary Points

I. Regulatory Status
* Retail cryptocurrency trading is legal and explicitly regulated.
* The market operates under a comprehensive framework established by the Ley Fintec (Law No. 21.521).
* The transition period for the Fintech Law ended in February 2025; as of the current analysis date (Dec 2025), the market is fully regulated.
* Chile is considered one of the most advanced jurisdictions in Latin America regarding crypto regulation.

II. Key Regulatory Bodies
* Comisión para el Mercado Financiero (CMF):
* The primary regulator for crypto asset service providers.
* Responsible for registering and supervising entities (VASPs) in the Registry of Financial Service Providers (RPSF).
* Unidad de Análisis Financiero (UAF):
* Enforces Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) obligations.
* Exchanges must report suspicious activities to this unit.
* Servicio de Impuestos Internos (SII):
* Oversees taxation of crypto assets.
* Treats crypto as 'digital assets' or 'intangibles' for tax purposes.
* Banco Central de Chile (Central Bank):
* Retains authority to regulate stablecoins specifically as means of payment.
* This authority is separate from the general crypto asset framework under the CMF.

III. Important Legislation
* Ley Fintec (Law No. 21.521):
* Enacted: 2023-01-04.
* The cornerstone legislation that brings crypto assets and fintech services under CMF supervision.
* Defines 'cryptoassets', mandates registration of exchanges and custodians, and establishes an Open Finance System to ensure banking access.
* Norma de Carácter General N° 502 (NCG N° 502):
* Enacted: 2024-01-12.
* Secondary regulation issued by the CMF detailing requirements for registration, authorization, and operation of fintech service providers, including crypto exchanges and custodians.
* Set the transition deadline for existing entities to February 2025.
* Circular N° 1963 (Tax Reporting):
* Enacted: 2024-01-01.
* Requires digital asset service providers to file annual sworn statements (Declaración Jurada 1963) reporting client balances and transactions to the SII.

IV. Compliance Requirements
* Mandatory Registration: All entities providing crypto exchange or custody services must be registered with the CMF and obtain authorization to operate. Operating without authorization is illegal.
* AML/CFT Reporting: Exchanges must comply with AML/CFT obligations and report suspicious activities to the UAF.
* Tax Reporting: Service providers must file annual sworn statements (DJ 1963) with the SII detailing client transactions and balances.
* Taxation: Profits from crypto assets are subject to Capital Gains Tax (Impuesto de Primera Categoría for companies, Global Complementary Tax for individuals).

V. Notable Restrictions or Limitations
* There are no specific restrictions on retail trading of general crypto assets under the CMF framework.
* A key historical restriction—arbitrary denial of banking services—has been legally addressed by the Ley Fintec, which prohibits such discrimination.
* The Central Bank's authority over stablecoins as payment means may imply a separate, potentially more restrictive regulatory layer for those specific assets.

VI. Recent Developments or Notes
* The transition period for compliance with the Fintech Law and NCG N° 502 ended in February 2025.
* The banking access guarantee is a significant development, legally prohibiting banks from arbitrarily closing accounts of registered crypto businesses; closures must be based on objective, non-discriminatory criteria.
* The regulatory framework is now fully implemented and operational.

Full Analysis Report

Chile has transitioned from a 'Gray-Zone' jurisdiction to a fully 'Allowed-Regulated' environment with the full implementation of Law No. 21.521, commonly known as the 'Ley Fintec'. Enacted in January 2023 and fully operationalized through secondary regulations (NCG 502) in January 2024, the law explicitly brings Virtual Asset Service Providers (VASPs) under the supervisory umbrella of the Comisión para el Mercado Financiero (CMF). The law categorizes crypto exchanges as 'Alternative Transaction Systems' and custodians as 'Custodians of Financial Instruments', requiring them to meet strict capital, governance, and operational standards.

The regulatory framework imposes a mandatory licensing regime. Existing operators were given a transition period until February 3, 2025, to submit their applications for registration and authorization. By late 2025, only entities that are registered in the CMF's 'Registro de Prestadores de Servicios Financieros' (RPSF) are legally permitted to offer services to the public. This regime effectively eliminates the legal uncertainty that previously plagued the sector, where exchanges operated under general commercial laws without specific financial oversight.

A critical component of the Chilean framework is the resolution of banking access issues. Historically, Chilean banks frequently closed the accounts of crypto exchanges, citing AML risks. The Ley Fintec addresses this by mandating that banks establish objective, public, and non-discriminatory conditions for account opening and closing. While banks can still deny service for specific risk-based reasons, they can no longer implement blanket bans on the crypto sector, and the CMF has the power to arbitrate disputes.

Taxation and AML compliance are also strictly enforced. The Servicio de Impuestos Internos (SII) has issued specific instructions (such as Circulars and the new Declaración Jurada 1963) requiring intermediaries to report user holdings and transaction volumes, ensuring tax transparency. Similarly, the Unidad de Análisis Financiero (UAF) requires all registered crypto entities to maintain comprehensive AML/CFT prevention models and report suspicious transactions, aligning Chile with FATF standards.

Chile has transitioned from a 'Gray-Zone' jurisdiction to a fully 'Allowed-Regulated' environment with the full implementation of Law No. 21.521, commonly known as the 'Ley Fintec'. Enacted in January 2023 and fully operationalized through secondary regulations (NCG 502) in January 2024, the law explicitly brings Virtual Asset Service Providers (VASPs) under the supervisory umbrella of the Comisión para el Mercado Financiero (CMF). The law categorizes crypto exchanges as 'Alternative Transaction Systems' and custodians as 'Custodians of Financial Instruments', requiring them to meet strict capital, governance, and operational standards.

The regulatory framework imposes a mandatory licensing regime. Existing operators were given a transition period until February 3, 2025, to submit their applications for registration and authorization. By late 2025, only entities that are registered in the CMF's 'Registro de Prestadores de Servicios Financieros' (RPSF) are legally permitted to offer services to the public. This regime effectively eliminates the legal uncertainty that previously plagued the sector, where exchanges operated under general commercial laws without specific financial oversight.

A critical component of the Chilean framework is the resolution of banking access issues. Historically, Chilean banks frequently closed the accounts of crypto exchanges, citing AML risks. The Ley Fintec addresses this by mandating that banks establish objective, public, and non-discriminatory conditions for account opening and closing. While banks can still deny service for specific risk-based reasons, they can no longer implement blanket bans on the crypto sector, and the CMF has the power to arbitrate disputes.

Taxation and AML compliance are also strictly enforced. The Servicio de Impuestos Internos (SII) has issued specific instructions (such as Circulars and the new Declaración Jurada 1963) requiring intermediaries to report user holdings and transaction volumes, ensuring tax transparency. Similarly, the Unidad de Análisis Financiero (UAF) requires all registered crypto entities to maintain comprehensive AML/CFT prevention models and report suspicious transactions, aligning Chile with FATF standards.

Source Evidence

Primary and secondary sources cited in this analysis

Ley N° 21.521 - Promueve la Competencia e Inclusión Financiera (Ley Fintec) primary (law_text)

2023-01-04

"Regula de forma taxativa diversos servicios financieros basados en tecnología, tales como... sistemas alternativos de transacción... custodia de instrumentos financieros."

CMF Emite Norma de Carácter General N° 502 primary (regulator)

2024-01-12

"Regula el registro, autorización y obligaciones de los prestadores de servicios financieros de la ley... vigencia el día 3 de febrero de 2024."

Registro de Prestadores de Servicios Financieros (RPSF) primary (official_government)

2025-12-12

"En este Registro se deben inscribir quienes se dediquen en forma profesional a la prestación de servicios... conforme a lo establecido en la Ley N°21.521."

SII Tributación de Criptomonedas (Oficio 963) primary (official_government)

2025-10-24

"Las ganancias obtenidas en las actividades de compra y venta de criptomonedas son rentas afectas a impuestos."

CMS Expert Guide to Crypto Regulation in Chile secondary (analysis)

2025-06-19

"Cryptoassets fall under the regulatory framework of Law No. 21.521... mandated that financial service providers seek registration... otherwise, on February 3th 2025, they must refrain from continuing."

Barros & Errázuriz - CMF Regulates Fintec Law secondary (analysis)

2024-01-26

"Establece en un único cuerpo normativo las instrucciones y exigencias para los prestadores de servicios financieros... sistemas alternativos de transacción."