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Treasury Secretary Announces Project Regulating Cryptocurrencies

Finance Minister, Felipe Laranin, Announced on the inauguration ceremony of the Chilean President in New York on Monday. Presenting the law of law FintechStrives to regulate and oversee virtual asset transactions known as various alternative financial services and cryptocurrencies.

"Given the variety of forms and different platforms that the business model of this platform can provide different services, The regulation will apply the regulation proportionally according to the type of service provided and the risk that it implies to the user For financial markets, "Larraín explained.

The authorities In Chile, an initial virtual asset exchange activity was developed, cryptoactives. Today, this economic activity is not subject to certain regulations, but the Treasury has warned the public about this type of investment risk.

"The regulation of these platforms will mitigate some of the risks, such as money laundering and terrorist financing, and increase the legal certainty that they operate. We want to adequately protect the risks associated with this activity."Larraín said.

The main aspect of the project is flexibility, which ensures that laws are not abandoned due to the rapid development of technology and technology neutrality – that there is no regulatory imbalance among institutions that provide traditional financial services. It's more tech-intensive.

He noted that the Treasury would review the international experience, met with the private sector, and would consider technical comments from financial regulators such as the Central Bank of Chile, the CMF and the UAF.

"The importance of alternative forms of financial services provision using alternative financial and technical means (Fintech) It will continue to increase in the medium term.", The Secretary of State.

Therefore, in order to position Chile as a regional financial center, the finance minister emphasized that appropriate development conditions should be created to mitigate risks that could imply financial stability and market integrity.

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