Crypto Overview in Chile

Regulatory data is for informational purposes only and may not reflect the most current legal developments. Always consult qualified professionals before making decisions.

Legal Classification and Regulatory Framework

Cryptocurrency Status

Chile has positioned itself as one of the more progressive cryptocurrency jurisdictions in Latin America, implementing a comprehensive regulatory framework through Ley 21.521, the Fintech Law, published in the Diario Oficial on 4 January 2023 and in force from 3 February 2023. Under Chilean law, cryptocurrencies are classified as digital assets or intangible goods rather than legal tender, foreign currency, or traditional securities. Ley Fintech 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 provides legal certainty for businesses and investors while preserving flexibility as the market matures.

Cryptocurrencies are legal to own, trade, and use in Chile. The Banco Central de Chile (BCCh) has consistently maintained that virtual currencies carry no legal recognition as currency, meaning merchants are not obligated to accept them as payment. Parties remain free to agree privately to use crypto assets as a medium of exchange, and this freedom has supported steady adoption across the country. The BCCh is separately exploring a Central Bank Digital Currency (CBDC) known as the Digital Peso, with pilot testing phases under way.

Tax Treatment

The Servicio de Impuestos Internos (SII), Chile’s national tax authority, has issued authoritative guidance on cryptocurrency taxation through two key rulings. Oficio No. 963 of 2018 established the foundational classification: gains from buying and selling crypto assets constitute general income under Article 20, Section 5 of the Ley de Impuesto a la Renta (Income Tax Law). Oficio No. 1,474 of 2020 refined the framework for individual taxpayers, clarifying cost-basis methodology, the deductibility of broker and exchange commissions, and the treatment of trading losses.

For individual taxpayers, capital gains are subject to the Impuesto Global Complementario (Global Complementary Tax) at progressive rates from 0% to 40% depending on total annual income. Non-residents face the Impuesto Adicional (Additional Tax) on Chilean-source income. Corporate taxpayers and individual entrepreneurs holding crypto as business assets pay the Impuesto de Primera Categoria (First Category Tax) at 27% under the general regime or 25% under the SME regime. The default cost method is FIFO; taxpayers may elect the weighted average cost method but must apply it consistently.

Mining income is treated as capital income rather than labour income, with the cost basis set at market value at the time of extraction and operational mining costs deductible. Airdrops and staking rewards received at no cost carry a zero acquisition cost, with gains taxed in full on disposal. A significant benefit for participants: crypto asset sales are exempt from the 19% Impuesto al Valor Agregado (IVA/VAT), confirmed by the SII on grounds that crypto assets lack the corporeality required by Article 2 of the sales and services tax law. All disposals must be reported annually on Form F22.

Regulatory Oversight

Chile’s regulatory framework distributes oversight across three authorities. The CMF is the primary supervisor, responsible for the Registry of Financial Service Providers and for licensing and monitoring crypto exchanges, custodians, brokers, order routers, and investment advisors. The BCCh focuses on prudential regulation, payment systems, and stablecoin policy. The UAF serves as the Financial Intelligence Unit, enforcing AML/CFT obligations across all registered service providers. These three bodies work in coordination to balance consumer protection, financial stability, and innovation.

Crypto License in Chile

Chile does not issue a standalone “crypto license” as a separate instrument; instead, crypto asset service providers must register with the CMF and obtain operating authorization under the framework established by Ley 21.521 and its implementing rule, Norma de Caracter General N 502 (NCG 502), issued on 12 January 2024 and in force from 3 February 2024. Registration in the Registry of Financial Service Providers is a mandatory prerequisite. Operating without it exposes providers to daily financial penalties, compulsory closure, and prohibition from accepting new clients.

Licensing Requirements under Ley Fintech

Article 2 of Ley 21.521 defines seven categories of regulated financial services. Those most relevant to crypto asset businesses include: alternative trading systems (covering crypto exchanges), intermediation of financial instruments (brokerage), custody of financial instruments (asset custody), order routing, and investment advisory services. Providers whose activities fall within one or more of these categories must register exclusively for those services; NCG 502 requires that an applicant’s sole corporate activity consist of one or more of the defined fintech service types.

NCG 502 establishes a three-block capital structure that scales minimum equity and collateral requirements to business volume, measured by number of clients, transaction count, and assets under custody. Capital thresholds range from approximately USD 35,000 to USD 150,000 depending on service type and block. Providers must also appoint a compliance officer and a crime prevention officer, implement an accredited crime prevention model under Chilean corporate criminal liability law, and maintain governance and cybersecurity standards consistent with ISO 27001. Client assets must be held in segregated accounts, distinct from the provider’s own funds. NCG 502 was modified by NCG 524 in October 2024, which added provisions on foreign entity domicile exceptions and refined the CMF’s evaluation of board-level risk management quality.

Authorized Activities

Under the combined framework of Ley 21.521 and NCG 502, authorized activities for registered crypto asset service providers include: spot trading and matching of crypto asset buy and sell orders (alternative trading systems); execution of client orders for crypto asset purchases and sales (intermediation and order routing); safekeeping and administration of crypto assets on behalf of clients (custody); and provision of advice on crypto asset investment strategies (advisory). The CMF may, by resolution, extend regulation to additional service types as the market evolves.

Tokenization of real-world assets is addressed separately: tokens representing securities such as shares or bonds fall under the Ley de Mercado de Valores and require distinct CMF authorization, while tokens representing non-financial assets can be structured under the Ley Fintech framework.

Application Process and Timeline

Applications must include incorporation documents covering the prior 10 years, identification of representatives and ultimate beneficial owners, service model description, governance structure, AML/CFT prevention program, and cybersecurity documentation. The registration fee is approximately USD 400 under Article 33 of Decreto Ley 3,538. The CMF has up to 30 days to process a registration request.

Registration alone does not authorize a provider to operate. The subsequent operating authorization involves a substantive review of solvency, corporate governance, cybersecurity controls, client asset segregation, and AML/CFT program quality; the CMF has up to six months to decide. Non-compliance with AML obligations after authorization can result in fines of up to 1,000 UF (approximately USD 40,000) and potential criminal liability under Chilean AML statutes.

Business Environment

Banking Relationships

The relationship between traditional banks and crypto businesses in Chile has a contentious history. In 2018, several major banks closed the accounts of local exchanges including Buda.com and CryptoMKT, citing money laundering concerns. The affected platforms sought relief through the Fiscalia Nacional Economica (FNE) and courts, with some initial orders requiring banks to restore access. The episode highlighted the vulnerability of crypto businesses to unilateral de-risking decisions by banks lacking a clear regulatory framework to assess these clients.

The Fintech Law has materially improved this dynamic. Licensed providers that maintain robust AML/CFT programs are better positioned to establish banking relationships, and the Open Finance System embedded in Ley 21.521 requires banks to share customer data through standardized APIs (with customer consent), promoting interoperability between traditional financial institutions and fintech platforms. Individual banks retain discretion to set their own risk-based policies, but regulatory clarity has reduced uncertainty on both sides.

Innovation Support

The CMF operates an active regulatory sandbox that allows startups and established companies to test blockchain solutions and digital asset business models in a controlled environment with reduced regulatory requirements. The BCCh has published multiple reports on CBDC development and established a Blockchain Observatory to monitor distributed ledger developments. The Santiago Stock Exchange has listed a spot Bitcoin exchange-traded fund (ETF), providing institutional investors with regulated digital asset exposure through traditional market infrastructure. Government-sponsored initiatives are examining blockchain applications in trade finance, electronic invoicing, bond settlement, and land registry modernization.

Market Characteristics

Adoption Patterns

Chile’s retail crypto adoption has grown steadily, supported by local platforms including Buda.com, CryptoMKT, and OrionX, which together have accumulated hundreds of thousands of registered users. Cryptocurrency gift cards are available through major retailers, providing accessible entry points for consumers less familiar with exchange platforms. Stablecoin usage has grown particularly quickly, with transaction volumes in stablecoins significantly outpacing growth in Bitcoin and other assets on a year-over-year basis. Businesses use stablecoins primarily for cross-border payments and as a store of value against currency volatility.

Institutional participation has progressed more cautiously but is gaining momentum as licensing clarity improves and regulated investment products become available. The legal recognition of crypto custody under the Fintech Law has made it easier for funds and other institutional entities to hold digital assets within compliant custody arrangements.

Industry Focus

Chile’s crypto industry has developed strength in spot exchange services, custody and brokerage, and cross-border payment solutions. Stablecoin-based remittances and international business payments represent a growing segment, with blockchain settlement offering cost and speed advantages over traditional wire transfers.

Regulatory evolution continues in several areas. Lending, borrowing, and yield-generating DeFi products lack specific guidelines and remain subject to case-by-case CMF interpretation. Stablecoin regulation specific to payment use cases is under active development by the BCCh and CMF. Chile has implemented the FATF Travel Rule, requiring crypto platforms to identify senders and receivers of transactions above defined thresholds, consistent with international AML standards. UAF Circular No. 62 of March 2025 further tightened AML procedures for registered providers, requiring enhanced monitoring and reporting protocols in line with FATF guidance.