Country overview

Chile is the second economy by GDP in South America, and together with Brazil and Argentina, it has the largest crypto market in the region. However, regulating cryptocurrencies and their exchange in the country is just developing.

Chile has a considerable danger security level according to our rating. Jurisdiction has 42.3 points (from 100) for safety level in Numbeo crime rating (1). The homicide level (2) is 6.7 per 100,000 inhabitants a year. Story of firearm-related death (3) 2.79 per 100,000 inhabitants a year.

We need more information about the legal status of crypto payments in Chile and their regulation. Please contact us if you can give us feedback about this topic.

We need more information about the legal status of crypto salaries in Chile and their regulation. Please contact us if you can give us feedback about this topic.

At the moment, cryptocurrency regulation in Chile is in its infancy. However, the country recently passed the Fintech Bill (4), under which local financial institutions can legally conduct cryptocurrency transactions. However, this bill came into force only in February 2023, and there are still no cases.

Local SEC is responsible for the crypto market - Commision de Mercado Financiero (4¹). This regulatory approach to crypto exchange is similar to Mexico and Argentina - their crypto exchanges got Fintech licenses.

The previous government proposed law (5) in 2021 to encourage competition. But it was delayed because of the Constitutional process. It expands the list of fintech entities regulated by the Financial Market Commission(5¹) on the grounds of risk-based proportionality. It also defines virtual assets such as cryptocurrencies. This law governs a wide range of fintech activities but includes (6) a part dedicated to crypto regulation.

Based on the Hgomez Group review (7), “any company which trades, speculates or offers intermediation services for crypto-assets will also be considered for this law,” the minimum level of capital to operate is USD 180,000.

So, crypto exchange in Chile is still in a grey zone, and new regulations have not been implemented yet. However, 7 Bitcoin ATMs are operating in Santiago, according to CoinATMRadar (8).

An official document (9) from the local tax authority published in 2018 regulates the taxation of virtual assets. According to the local exchange service Buda_com blog, if you are in any of these five cases, you must pay taxes:

If you sold cryptocurrencies for money in local currency and made a profit.

If you paid for goods and services with cryptocurrencies.

If they paid you in cryptocurrencies.

If you received mined cryptocurrencies.

If you donated cryptocurrencies to an NGO.

You may check the following documents in Spanish about the crypto taxation procedure in the country: Diario Financiero review (10) and guide from local tax authorities (11).

Based on the PWC tax summaries review (12), current tax rates in Chile are as follows:

CIT - 25-27%, PIT, CGT - 40%.

1) Crime Index by Country 2023 Mid-Year

2) List of countries by intentional homicide rate

3) List of countries by firearm-related death rate

4) Fintech Bill. PDF -file

4¹)Commision de Mercado Financiero

5) Chile’s fintech law could spur a new regulation wave in Latin America. Article

5¹)Open Finance: Oportunidades y Desafíos

6)Fintech Bill Approved and Ready to Be Sanctioned in Chile. Article

7) Chile Fintech Update: 4 Key aspects of the new law. Article

8) Bitcoin ATMs in Chile

9) RENTA – ACTUAL LEY SOBRE IMPUESTO A LA. Law

10) Compré y vendí cripto: ¿cómo pago impuestos? Article

11) Guide from local tax authorities

12) Overview. PWC