Though Chile has an active crypto sector up and running, the industry is not under any regulations, and as it keeps growing, it is apparent for proper and right regulations to be put in place to control this sector. In a bid to put Chile’s crypto industry under regulations, Felipe Larraín Minister of Finance for the Chilean government has introduced a bill in Congress in absentia to put cryptocurrencies together with the fintech sector under regulation.
Per local news outlet Ahora Noticias report, Minister Larraín introduced the bill while in the United States with his main aim being to put the sector under the purview of the government while at the same time helping it grow steadily without hindering its growth. According to Larraín, the new rules will be proportional to existing crypto related business models in operations in Chile. Furthermore, the new bill will take into account the industry has various entities delivering different services together with having different business models. Moreover, it’s apparent to have these rule since all the above come with different risks involved, and it’s the government’s responsibilities to cushion its consumers from such risks. Similarly, in Minister Larraín view flexibility is an essential aspect of the bill.
Larraín Also Issued Warnings
While stating his view about the regulations, Larraín also warned the public from making investments in the crypto sector. The warning is due to the risks involved in making investments in the crypto sector. He explained further and said;-
“Putting the crypto industry under regulations would come in handy at mitigating some of the risks associated with digital coins such as terrorist financing, and money laundering. Moreover, regulations will also help sanctify the sector by helping stakeholders operate legally and at the same time help the government to adequately protect consumers.”
As the authorities and the public wait for a verdict from Congress, comments of Ángel Sierra executive director of the FinteChile association show the sector is in dire need of regulations. According to Ángel Sierra, Chile is the most backward country when it comes to regulating financially related technology firms. Besides Chile, its neighbors Colombia, Argentina, Mexico, and Brazil also fall in the same bracket. However, some are still in the process of drafting regulations while others have only regulated segments of the sector. In time all regions will have proper laws for the above industry.