Legal Crypto In Chile

Cryptocurrency in Chile: Legal and Market Overview

Legality of Cryptocurrency

The legality of cryptocurrencies in Chile is governed by the principle of economic freedom, where "what is not forbidden is allowed." They are not legal tender or foreign currency and do not constitute transactions in foreign exchange. The Central Bank of Chile admits that cryptocurrencies may be used for exchange and investment, but it does not recognize cryptocurrencies as fiat money. There is no specific law that regulates cryptocurrencies on a standalone basis, but new regulations offer a regulatory regime.

Regulation of the Cryptocurrency Industry

The main legal framework is Law No. 21.521 (2023), commonly referred to as the FinTech Law (FT Law), which fosters financial innovation and inclusion. Crypto-assets are defined as digital representations of value or rights that can be transferred or stored electronically using distributed ledger technology. Compliance is managed by the Financial Markets Commission (Comision para el Mercado Financiero, CMF). Other regulations include:

- CMF resolutions establishing that cryptocurrencies do not represent financial securities, and therefore would not come under the scope of securities regulation.

- A criminal code (February 20, 2025) setting out illegal crypto activities (e.g., fraud, money laundering) and punishments.

- Taxation under general tax rules, with crypto sales providing the basis for capital gains, reported to the SII.

Key Regulatory Highlights

The main regulatory highlights are summarized in the following table:

Aspect	Details
Legal Status	Legal, but not legal tender or foreign currency.
Primary Law	Law No. 21.521 (FinTech Law, 2023).
Regulatory Body	Financial Markets Commission (CMF).
Criminal Regulation	Regulation of February 20, 2025, addresses illicit crypto activities.
Taxation	Capital gains tax applies; reported to SII.
Securities Status	Cryptocurrencies are not financial securities.

Top Cryptocurrency Exchanges

There are a handful of exchanges functioning in Chile, which can facilitate trading with CLP using local payment methods. Notable platforms include Buda.com, Latin America’s largest trading platform with CLP support; Binance, a global platform with local payments; CryptoMarket, a Chilean user-focused platform; and Bitso, which offers CLP trading and local banking. These trades are KYC/AML compliant.

Cryptocurrency Exchange Mechanisms

Cryptocurrencies in Chile are exchanged through centralized exchanges such as Buda.com and Binance for bank transfer or card payment; peer-to-peer markets (for example, Binance P2P) where you can trade directly with other people using cash or bank transfer; cryptocurrency ATMs across cities like Santiago for cash or card payments; or over-the-counter (OTC) markets for bulk deals involving institutions or high-net-worth individuals.

DeFi Market

The decentralized finance (DeFi) market in Chile is still fairly nascent, and most users interact with global platforms such as Uniswap, Aave, and Compound through self-custodial wallets (e.g., MetaMask). The FinTech Law doesn’t specifically govern DeFi, permitting a regulatory gray area that fosters innovation but poses risks. Adoption is restricted due to technical difficulty and awareness, yet it can be expected to expand as education and infrastructure improve.

NFT Market

In Chile, the non-fungible token (NFT) market is taking shape, appealing to artists, gamers, and collectors who use platforms like OpenSea, Rarible, and Foundation. NFTs are not specifically regulated but may be qualified under the definition of crypto-assets in the FinTech Law. Profits are taxed at capital gains rates. Domestically, the NFT value of digital art, music, game items, and other digital assets is being explored, but high transaction costs and obstacles to widespread adoption remain.

Useful Information

- Regulator: Crypto-asset compliance falls under the Financial Markets Commission (CMF).

- Tax Agency: Chilean National Tax Collection Agency (SII) mandates that crypto profits should be considered capital gains.

- General Regulation: Crypto-assets Law No. 21.521 (FinTech Law, 2023).

- Criminal Regulation: Regulation of February 20, 2025, addresses illicit crypto activities.

- Local Exchange: Buda supports CLP trading with local bank integration.

- Global Exchange: Binance offers CLP support for Chilean users.

- Central Bank Statements: Central Bank of Chile provides guidance on cryptocurrencies.

Conclusion

The cryptocurrency landscape in Chile is characterized by a progressive regulatory framework that balances innovation with oversight. The FinTech Law (Law No. 21.521) provides a foundation for fostering financial inclusion and technological advancement, while the Financial Markets Commission (CMF) ensures compliance and mitigates risks. Although cryptocurrencies are not recognized as legal tender, their use for exchange and investment is permitted, supported by a growing ecosystem of centralized exchanges, peer-to-peer platforms, and emerging DeFi and NFT markets. Taxation under general capital gains rules and criminal regulations addressing illicit activities further clarify the operational environment. As infrastructure, education, and adoption continue to evolve, Chile is well-positioned to become a significant hub for cryptocurrency and blockchain innovation in Latin America, provided regulatory clarity and market accessibility continue to improve.