Chile Compliance Report

Generated 2026-09-22

No Guidance

Regulatory Overview

Regulatory Status: Regulators have not addressed crypto; legal status ambiguous
Key Regulator(s): Public Ministry, Central Bank
Primary Legislation: For the relevant Chilean offense, Article 161-A of the Chilean Penal Code establ, Chile’s 2023 Fintech Law and General Rule No. 502 now directly regulate all cryp, Fintech Law, The CMF has already published its specific regulations regarding VASPs under the, Secondary Regulations (in development): The Fintech Law mandates the CMF to issu
Travel Rule: Adopted — Threshold: ,
Tax Reporting: Oficio N° 972 del 28 de mayo de 2021: This ruling is currently the most comprehensive, reaffirming and expanding upon previous stances.. Oficio N° 2850 de 2018: An earlier ruling that initially set the framework.. Bienes inmateriales (intangible assets).. Bienes incorporales (incorporeal assets).. Taxable Event: The positive difference between the sale price and the acquisition cost (cost basis) is considered a capital gain.

Key Facts

aml UAF Website: https://www.uaf.cl/ CMF Website: https://www.cmfchile.cl/ Ley N° 19.913, que Crea la Unidad de Análisis Financiero y Modifica Diversas Disposiciones en Materia de Lavado y Blanqueo de Activos (Law N° 19.913, which Creates the Financial Analysis Unit and Modifies Various Provisions Regarding Asset Laundering and Blanqueo de Activos): This is the main AML/CFT law in Chile, establishing the UAF and defining the framework for preventing and prosecuting money laundering and terrorist financing. UAF Circular N° 57 (Circular N°57 de la UAF): This is the most crucial piece of regulation for VASPs. Issued by the UAF, Circular N° 57 (published in October 2020) explicitly designates "Providers of Virtual Asset Services" (PSAV) as obligated entities under Law N° 19.913. This means VASPs must comply with all AML/CFT obligations applicable to other financial institutions. Circular N° 49 de la UAF: Establishes general instructions on risk management and prevention of ML/FT for obligated entities, including policies, procedures, internal controls, and designated compliance officers. Circular N° 50 de la UAF: Provides instructions for identifying Politically Exposed Persons (PEPs). Circular N° 51 de la UAF: Establishes instructions regarding the detection and reporting of transactions related to terrorism financing and compliance with international sanctions lists. Circular N° 52 de la UAF: Details instructions for conducting risk assessments for ML/FT.
custody Chile's Financial Market Commission (CMF) issued binding regulations on July 3, 2024, implementing the Open Finance System under Ley N° 21.521, which supersedes or modifies the original Title II, Articles 4-22 framework. Any entity intending to provide virtual asset custody services in Chile must register with the Financial Market Commission (CMF) via the Financial Services Register, as established by the Fintech Law. Authorization and Registration: Providers of virtual asset services, including custody, must obtain authorization and be registered with the CMF. Chile is actively overhauling corporate governance at major state-owned firms to address current weaknesses, rather than robust structures being firmly required and in place. Risk Management: Implement comprehensive risk management policies, including operational, technological, and cybersecurity risks. Capital Requirements: Meet minimum capital requirements, which will be specified in the CMF's secondary regulations. Operational Requirements: Adhere to operational standards ensuring the security and integrity of services. Technology and Cybersecurity: Implement strong cybersecurity measures and IT infrastructure to protect client assets and data.
enforcement Entity Targeted: Individuals associated with "Mind Capital" in Chile, notably promoters and recruiters of the scheme. Violation Type: Alleged multi-level marketing scheme, fraud (estafa), swindling, and illegal banking activities, using cryptocurrencies as a facade. Outcome: Criminal proceedings are ongoing against several individuals involved in promoting and operating the scheme within Chile. The goal is to prosecute those responsible and recover funds for victims. Entity Targeted: Chilean individuals and entities linked to the international "Generación Zoe" and "IM Forex" schemes. Violation Type: Alleged pyramid scheme, fraud (estafa), swindling, and illegal financial operations, misleading investors with promises of high, guaranteed returns using crypto as an investment vehicle. Penalty Amount: Criminal charges have been filed, leading to arrests and asset seizures. Specific penalties (prison sentences, restitution) are pending final judicial decisions. Outcome: Several individuals have been arrested and charged in Chile for their roles in promoting and operating the scheme. The primary operator of Generación Zoe, Leonardo Cositorto, was arrested in Argentina and is facing charges there. Chilean authorities continue to investigate and prosecute local affiliates. Penalty Amount: No direct penalties attached to a warning. Penalties would come from future enforcement actions under the new FinTech Law, once fully implemented. Outcome: Increased public awareness about crypto risks. The FinTech Law now requires Virtual Asset Service Providers (VASPs) to register with the CMF and comply with various regulations (e.g., AML/CFT, consumer protection). This will enable direct regulatory enforcement actions in the future against non-compliant entities. Outcome: Criminal proceedings are ongoing against several individuals involved in promoting and operating the scheme within Chile. The goal is to prosecute those responsible and recover funds for victims. Outcome: Several individuals have been arrested and charged in Chile for their roles in promoting and operating the scheme. The primary operator of Generación Zoe, Leonardo Cositorto, was arrested in Argentina and is facing charges there. Chilean authorities continue to investigate and prosecute local affiliates. Warnings in Chile target the general public and unregistered crypto platforms; they are currently preventative with no direct penalties, but future enforcement under the FinTech Law may impose sanctions. Outcome: Increased public awareness about crypto risks. The FinTech Law now requires Virtual Asset Service Providers (VASPs) to register with the CMF and comply with various regulations (e.g., AML/CFT, consumer protection). This will enable direct regulatory enforcement actions in the future against non-compliant entities.
general The Fintech Law mandates that the CMF will establish minimum capital requirements for regulated entities, including VASPs. These requirements are expected to be calibrated based on the type of activity, the volume of operations, the risks involved, and the nature of the assets handled. Expect to see requirements for initial paid-up capital and ongoing operational capital/solvency to ensure the financial stability of the VASP. Registration with UIF: All VASPs are designated as "reporting entities" by the Unidad de Análisis Financiero (UIF), Chile's Financial Intelligence Unit. They must register with the UIF. Robust AML/KYC Policies and Procedures: VASPs must implement comprehensive AML/KYC programs, including: Customer Due Diligence (CDD): Identifying and verifying the identity of customers (natural and legal persons). Enhanced Due Diligence (EDD): For high-risk customers, transactions, or geographies. Transaction Monitoring: Monitoring transactions for suspicious activities.
licensing Regulator Name: Fiscalía (Public Ministry/Prosecutor's Office) For the relevant Chilean offense, Article 161-A of the Chilean Penal Code establishes a fixed statutory penalty range: imprisonment of reclusión menor in any of its degrees plus a fine of 50 to 500 UTM, increased to reclusión menor in its maximum degree plus a fine of 100 to 500 UTM if the same person both obtains and discloses the material; penalties are therefore not left open-ended to generic criminal charges, asset freezes, and restitution alone but are set by law within these ranges. Investigations began around 2020-2021, with arrests and legal actions continuing from 2022 through at least January 2025. CriptoNoticias (Spanish): "Mind Capital, Kuailian y ARBIM: tres estafas cripto investigadas por la justicia chilena" (February 2022) - While focused on multiple cases, it details the ongoing investigation into Mind Capital. Diario Financiero (Spanish): "Criptoestafas: Fiscalía formaliza a 10 personas por caso Generación Zoe, IM Forex y Mind Capital" (October 2022) - Details formalization of charges. Date: Investigations and arrests primarily occurred from mid-2022 onwards, with legal proceedings ongoing. La Tercera - Pulso (Spanish): "Las claves del caso Generación Zoe, la presunta estafa piramidal internacional que impacta a Chile" (April 2022) - Provides context on the scheme and its reach into Chile. Regulator Name: CMF (Comisión para el Mercado Financiero)
securities The Chilean regulatory landscape for cryptocurrencies and digital assets is evolving, with a focus on investor protection and financial stability. Chile's Securities Market Law (Law No. 20,279) governs the issuance and trading of securities, including digital assets that may be classified as securities. The Superintendencia de Valores y Seguros (SVS) is the regulatory authority overseeing securities and insurance markets in Chile. Entities offering digital asset services must obtain a license from the SVS if their activities are considered to involve securities or investment funds. The licensing process includes compliance with capital adequacy and operational standards to ensure market integrity. Digital asset service providers are required to implement robust Anti-Money Laundering (AML) and Know Your Customer (KYC) procedures. The SVS mandates identity verification and ongoing monitoring of transactions to prevent illicit activities. The SVS has the authority to impose fines, suspend operations, or revoke licenses for non-compliance with regulatory requirements.
stablecoin Crypto-assets: Stablecoins are primarily classified as crypto-assets under Law 21.521. This law defines "crypto-assets" broadly as digital representations of value or rights that can be stored or transferred electronically using distributed ledger technology or similar. E-money/Payment Tokens: The law does not explicitly classify stablecoins as "e-money" or "payment tokens" in a distinct category, but the services that involve them (e.g., acting as a means of payment) can fall under regulated "payment intermediation services" or "alternative transaction systems." If a stablecoin perfectly replicates the functions of fiat currency and is designed solely for payments, the CMF could interpret certain aspects through the lens of payment services. A stablecoin could be classified as a security if its structure confers rights akin to those of traditional securities (e.g., profit-sharing, debt instruments, investment contracts). The CMF (Comisión para el Mercado Financiero) has the authority to assess this on a case-by-case basis under the specific framework and mechanisms established by the 2023 Fintech Law. However, most fiat-backed stablecoins are designed to avoid this classification. Crypto-Asset Service Providers (CASPs): The key approach is to regulate the services provided with crypto-assets. Any entity offering services related to stablecoins (e.g., exchange, custody, intermediation, advising) will be considered a Crypto-Asset Service Provider (CASP) and subject to the CMF's oversight. Ley Nº 21.521, de 2023, Ley Fintech: Establece el marco regulatorio aplicable a las empresas de tecnología financiera (Fintech). URL: https://www.bcn.cl/leychile/navegar?idNorma=1189334 (Official BCN LexisNexis link) Risk Management: CASPs dealing with stablecoins will be required to implement comprehensive risk management policies. For fiat-backed stablecoins, this will likely translate into requirements for the quality, segregation, and regular auditing of their backing assets. Asset Segregation: The law empowers the CMF to require the segregation of client assets from the CASP's own assets, which is critical for stablecoin reserves.
status Tax Rate: Progressive, ranging from 19% to 35% based on total taxable income. Example: A gain of CLP 500,000 realized by an individual with a total taxable income placing them in the 25% tax bracket would be taxed at 125,000 CLP (25% of 500,000). Consumer Protection: Lack of oversight may lead to fraud or poor service quality. Market Stability: Uncertainty can deter institutional investment and stabilize market conditions. AML/KYC Compliance: Indirect application of financial services rules may not sufficiently mitigate money laundering risks. Driving in Chile - U.S. Embassy in Chile Chile - Licensing Requirements for Professional Services Chile - Individual - Taxes on personal income
tax Oficio N° 972 del 28 de mayo de 2021: This ruling is currently the most comprehensive, reaffirming and expanding upon previous stances. Oficio N° 2850 de 2018: An earlier ruling that initially set the framework. Bienes inmateriales (intangible assets). Bienes incorporales (incorporeal assets). Taxable Event: The positive difference between the sale price and the acquisition cost (cost basis) is considered a capital gain. Tax Rate: These capital gains are integrated into the individual's global income and are subject to the Impuesto Global Complementario (Global Complementary Tax). This is a progressive personal income tax with rates ranging from 0% to 40% (as of 2024, rates are subject to annual adjustments). For crypto acquired through purchase, the acquisition cost includes the purchase price and any direct costs associated with acquiring the crypto. For crypto acquired through mining, the initial cost basis is the market price of the asset on the day of acquisition. Capital losses can offset capital gains in the same tax year, and losses can be carried forward indefinitely in Chile.
travel rule Overall Status: Chile has officially adopted the principles of the FATF Travel Rule for Virtual Asset Service Providers (VASPs). The key regulatory instrument is UAF Circular N° 79, issued in 2022, which designates VASPs as obliged entities for AML/CFT purposes and requires them to comply with FATF Recommendation 16 (the Travel Rule) among other obligations. Whether Adopted: Yes, it has been adopted. The UAF Circular N° 79 explicitly references FATF Recommendations and mandates their application to Virtual Asset Service Providers (PSAVs - Proveedores de Servicios de Activos Virtuales). UAF Circular N° 79 was issued and became effective on July 11, 2022. This circular brought PSAVs under the scope of AML/CFT obligations in Chile, including the principles of the Travel Rule. Chile received a follow-up assessment by FATF in May 2023, where its technical compliance rating for Recommendation 15 (New Technologies, including virtual assets) was upgraded from "Partially Compliant" to "Largely Compliant," largely due to the implementation of Circular N° 79. UAF Circular N° 79 adopts the FATF thresholds for the Travel Rule. This means: For transfers between VASPs (VASP-to-VASP), the originating VASP must obtain and transmit required originator and beneficiary information for transactions equal to or exceeding USD/EUR 1,000 (or its equivalent in other currencies or virtual assets). For transfers from an unhosted wallet to a VASP, or from a VASP to an unhosted wallet, VASPs are expected to obtain the necessary originator or beneficiary information as appropriate, often through enhanced due diligence. Suspicious Transaction Reports (STRs): Regardless of any threshold, any transaction deemed suspicious must be reported to the UAF.

Sources

This report is AI-generated from publicly available regulatory sources. Last updated: 2026-09-22. View full profile