Chilean Minister of Finance Felipe Larraín announced this week that the government has sent Chile’s Congress a legislative bill that will provide regulation for fintech and cryptocurrencies. Larraín made the announcement during a visit in the United States, and emphasized the government’s cautious and flexible approach to regulating the space:
"Taking into account the different forms taken by the business models of these platforms and also the fact that different platforms can provide different services, the regulation will apply requirements proportionally, regulating according to the type of service provided and the risks that this implies for the users and for the financial market."
According to Chilean media outlet Ahora Noticias, the regulatory effort focuses on a flexible approach to oversight to enable regulators to keep pace with rapidly evolving technology.
Larraín also acknowledged the growing crypto-related activity in his country, and suggested that the government’s regulatory efforts could help to reduce investor risk and provide more protections against illicit activity like money laundering and terror financing:
"A regulation to these platforms would mitigate some of these risks, such as money laundering and financing of terrorism, and increase the legal certainty with which they operate. We want to adequately protect the risks associated with this activity.”