Chile

Disclaimer: The regulatory information provided below is for general informational purposes only and may not reflect the most current legal developments. Cryptocurrency regulations are rapidly evolving and can change frequently. This information should not be considered legal or tax advice. Before making any business or investment decisions, please consult with qualified legal, tax, or financial professionals familiar with your specific jurisdiction and circumstances. Always verify current regulations with official government sources and regulatory bodies.

Legal Classification & Regulatory Framework

Cryptocurrency Status

Chile has established itself as one of the more progressive cryptocurrency jurisdictions in Latin America, implementing a comprehensive regulatory framework through its Fintech Law (Law No. 21.521). Under Chilean law, cryptocurrencies are classified as digital assets or intangible goods rather than legal tender, foreign currency, or traditional securities. This classification provides legal recognition for cryptocurrency activities while maintaining clear boundaries between digital assets and the traditional monetary system.

The Fintech Law defines crypto-assets as “digital representations of units of value, goods, or services, with the exception of money, whether in national currency or foreign exchange, that can be transferred, stored, or exchanged digitally.” This technology-neutral approach allows for regulatory flexibility as the cryptocurrency ecosystem evolves, while still providing the clarity businesses and investors need to operate with confidence.

Importantly, while cryptocurrencies are legal to own, trade, and use in Chile, they are not considered legal tender. The Central Bank of Chile has consistently maintained that virtual currencies have no legal recognition as currency, meaning merchants are not obligated to accept them as payment. However, parties are free to agree to use cryptocurrencies as a medium of exchange in private transactions, and this freedom has facilitated growing adoption across the country.

Tax Treatment

Chile’s Servicio de Impuestos Internos (SII), the national tax authority, has established clear guidelines for cryptocurrency taxation. Since cryptocurrencies are classified as intangible digital assets, they are subject to capital gains and income tax provisions under Chilean law.

For individual taxpayers, gains realized from cryptocurrency sales are subject to the Global Complementary Tax (Impuesto Global Complementario), with progressive rates ranging from 0% to 40% depending on total annual income. Non-residents are subject to the Additional Tax (Impuesto Adicional) on Chilean-source income. The taxable gain is calculated as the difference between the sale price and the acquisition cost, with the latter adjusted for inflation using Chile’s Consumer Price Index (IPC).

Corporate taxpayers and individual entrepreneurs who hold cryptocurrencies as business assets face the First Category Tax (Impuesto de Primera Categoría) at a rate of 27% under the general regime or 25% under the SME regime. These entities must maintain proper accounting records of their cryptocurrency transactions and include them in their financial statements.

Mining activities are treated as income-generating activities and are subject to standard income tax provisions. For cryptocurrencies obtained through mining, the cost basis is determined by the market value at the time of extraction, with miners entitled to deduct operational costs incurred in the mining process. Cryptocurrencies received through airdrops or staking rewards have a zero cost basis for tax purposes.

Notably, cryptocurrency transactions are exempt from Value Added Tax (IVA) since they are considered intangible goods rather than tangible goods or taxable services. This has been confirmed through multiple SII rulings and provides clarity for both businesses and consumers engaging in cryptocurrency transactions.

Regulatory Oversight

Chile’s cryptocurrency regulatory framework involves multiple government agencies working in coordination to provide comprehensive oversight while fostering innovation in the financial technology sector.

The Comisión para el Mercado Financiero (CMF), Chile’s financial market regulator, serves as the primary supervisory authority for cryptocurrency service providers. The CMF maintains the Registry of Financial Service Providers and is responsible for licensing and monitoring exchanges, custodians, brokers, investment advisors, and other entities offering crypto-related financial services. Through General Rule No. 502 (NCG 502), the CMF has established detailed requirements for registration, authorization, and ongoing compliance.

The Banco Central de Chile (Central Bank of Chile) plays a crucial role in prudential regulation, particularly regarding stablecoins and payment systems. The Central Bank has been actively researching Central Bank Digital Currency (CBDC) implementation and is developing specific regulations for stablecoins used as means of payment. The institution has also established a Blockchain Observatory to study and monitor developments in distributed ledger technology.

The Unidad de Análisis Financiero (UAF), Chile’s financial intelligence unit, oversees anti-money laundering (AML) and counter-terrorism financing (CFT) compliance for cryptocurrency service providers. Registered providers must implement comprehensive Know Your Customer (KYC) procedures, conduct beneficial ownership due diligence, perform risk-based transaction monitoring, and submit suspicious activity reports to the UAF.

Business Environment

Banking Relationships

The relationship between traditional banks and cryptocurrency businesses in Chile has evolved significantly over the years. In earlier periods, several banks took conservative approaches, with some closing accounts of cryptocurrency exchanges due to concerns about money laundering risks. However, the implementation of the Fintech Law has created a more structured environment that facilitates improved banking relationships for compliant cryptocurrency businesses.

The Fintech Law incorporates an Open Finance System that requires banks to share customer data (with consent) through standardized APIs. This framework promotes interoperability between traditional financial institutions and fintech companies, including cryptocurrency platforms, creating opportunities for more integrated financial services.

Licensed cryptocurrency service providers that meet CMF requirements and maintain robust AML/CFT compliance programs are better positioned to establish and maintain banking relationships. The regulatory clarity provided by the Fintech Law has reduced uncertainty for banks, although individual institutions may still maintain their own risk-based policies regarding cryptocurrency-related accounts.

Licensing Requirements

Under the Fintech Law and General Rule No. 502, cryptocurrency service providers must obtain registration and operating authorization from the CMF before conducting business in Chile. This requirement applies to a broad range of activities, including cryptocurrency exchanges, custody services, brokerage, order routing, and investment advisory services related to digital assets.

The registration process involves submitting an application to the CMF, which has 30 days to process registration requests. The registration fee is approximately USD 400. Following registration, providers must obtain operating authorization through a more comprehensive review process that can take up to six months.

The authorization review covers multiple areas including solvency and minimum equity requirements, corporate governance structures, cybersecurity measures (with ISO 27001 compliance often expected), client asset segregation protocols, and AML/CFT program adequacy. Minimum capital requirements vary based on the type and scale of services offered, with thresholds generally ranging from USD 35,000 to USD 150,000 depending on the activity.

Providers must also appoint a compliance officer and a crime prevention officer, and implement an accredited crime prevention model in accordance with Chilean law. The CMF conducts ongoing supervision of registered entities to ensure continued compliance with applicable requirements.

Failure to obtain proper authorization can result in daily penalties, compulsory account closures, and prohibition from accepting new business. Violations of AML regulations can lead to fines up to approximately USD 40,000 and potential criminal liability.

Innovation Support

Chile has demonstrated a proactive approach to supporting financial innovation, including blockchain technology and cryptocurrency applications. The CMF operates a regulatory sandbox that allows startups and innovative companies to test blockchain solutions and digital asset business models in a controlled environment with reduced regulatory requirements.

The Central Bank of Chile has been actively exploring the potential for a Central Bank Digital Currency (CBDC), referred to as the Digital Peso. The institution has published multiple reports on CBDC development and has advanced to pilot testing phases, examining both wholesale and retail implementation models. This research reflects the government’s interest in understanding how digital currencies can contribute to a more competitive, innovative, and inclusive payment system.

Public-private partnerships have emerged to explore blockchain applications in various sectors. Government-sponsored initiatives are examining the use of blockchain technology for trade finance, electronic invoicing, bond settlement, and land registry modernization. These projects indicate official recognition of blockchain’s potential to improve efficiency and transparency in public and private sector operations.

The listing of a spot Bitcoin exchange-traded fund (ETF) on the Santiago Stock Exchange represents another milestone in Chile’s cryptocurrency market development, providing institutional investors with regulated exposure to digital assets through traditional investment channels.

Market Characteristics

Adoption Patterns

Chile has experienced growing cryptocurrency adoption among both retail and institutional participants. Local cryptocurrency platforms have attracted substantial user bases, with domestic exchanges reporting hundreds of thousands of registered users. Digital payment services have expanded to include cryptocurrency buy-and-hold functionality, making digital asset access more convenient for everyday consumers.

Retail adoption has been supported by the availability of cryptocurrency gift cards through major retailers, providing alternative on-ramps for consumers who may be less familiar with traditional exchange platforms. Stablecoin usage has grown particularly rapidly, with year-over-year transaction volumes in stablecoins significantly outpacing growth in Bitcoin and other cryptocurrencies. Stablecoins are commonly used for business-to-business cross-border payments and as a store of value.

Institutional adoption has progressed more cautiously but is gaining momentum as regulatory clarity improves. The availability of regulated investment products and the establishment of clear licensing requirements have made it easier for institutional investors to participate in the cryptocurrency market within appropriate risk management frameworks.

Industry Focus

Chile’s cryptocurrency industry has developed particular strengths in several areas. Cryptocurrency exchanges form the core of the local ecosystem, with platforms offering trading services for major cryptocurrencies and local currency pairs. Custody and brokerage services have grown alongside exchange platforms to meet the needs of more sophisticated investors.

Cross-border payment solutions represent a significant use case, with stablecoins increasingly used for remittances and international business transactions. The efficiency and cost advantages of blockchain-based payments compared to traditional wire transfers have driven adoption in this segment.

The tokenization of real-world assets is an emerging area of focus. Under Chilean regulations, tokens representing securities such as shares, bonds, or fund participations are governed by the Securities Market Law and require CMF authorization. Non-financial assets including real estate, commodities, and intellectual property can be tokenized under the Fintech Law framework, opening opportunities for innovative investment products.

Regulatory Evolution

Chile’s cryptocurrency regulatory framework continues to evolve as authorities work to address emerging challenges and opportunities. While the Fintech Law provides a solid foundation, certain areas remain subject to ongoing development and clarification.

Current regulatory grey areas include lending and borrowing services, DeFi protocols, and yield-generating products, which lack specific guidelines and are subject to case-by-case interpretation by the CMF. Authorities are expected to issue additional guidance on these activities as the market matures.

Stablecoin regulation is a priority area, with the Central Bank of Chile working alongside the CMF to develop specific rules for stablecoins used as means of payment. The regulatory framework is expected to address issuer requirements, reserve management, and consumer protection measures.

Chile is implementing the Travel Rule, requiring cryptocurrency platforms to identify senders and receivers of transactions exceeding certain thresholds, in alignment with Financial Action Task Force (FATF) recommendations. This reflects the country’s commitment to international standards for AML/CFT compliance.

The regulatory approach in Chile represents a balanced effort to promote innovation while protecting consumers and maintaining financial stability. As one of the leading jurisdictions in Latin America for cryptocurrency regulation, Chile’s framework serves as a reference point for other countries in the region developing their own regulatory approaches.

For Current Information:

• Comisión para el Mercado Financiero (CMF) – Financial Market Commission: https://www.cmfchile.cl
• Banco Central de Chile – Central Bank of Chile: https://www.bcentral.cl
• Servicio de Impuestos Internos (SII) – Internal Revenue Service: https://www.sii.cl
• Unidad de Análisis Financiero (UAF) – Financial Analysis Unit: https://www.uaf.cl