Chile’s Central Bank Governor Considering Crypto Regulation

News, Regulation | May 23, 2018 By:

Central Bank of Chile governor Mario Marcel is considering developing a regulatory framework for cryptocurrencies in order to monitor risks.

During a forum of the Finance Commission of Deputies, Marcel said the central bank is planning to a legislative apparatus designed to regulate and monitor activities pertaining to Chile’s cryptocurrency sector.

“Incorporating regulation will allow having a registry of participants in these activities and thus have information to monitor the associated risks,” Marcel said. “These activities could be developed under more robust standards and mechanisms, especially in terms of market transparency, consumer protection, and prevention of money laundering and terrorist financing.”

Cryptocurrencies in Chile are not legally recognized as a means of exchange or securities, but there are no laws in place that prevent citizens from exchanging crypto for goods and services.

In March of this year, bitcoin exchange Buda and ethereum trading platform CryptoMKT asked the Association of Banks and Financial Institutions (ABIF) to “make its position transparent” after a number of Chilean banks shut down their accounts just for dealing with cryptocurrencies.

In April, Buda filed legal action to one of the country’s appeals court to protest the unexpected closure of their bank accounts. Later that month, Buda successfully persuaded the country’s anti-monopoly court to order the re-opening of its accounts at state-owned bank Banco del Estado de Chile and Itaú Corpbanca.