Chile -- Licensing Requirements Regulatory Overview

**Regulator Name:** Fiscalía (Public Ministry/Prosecutor's Office)

**Entity Targeted:** Individuals associated with "Mind Capital" in Chile, notably promoters and recruiters of the scheme.

**Violation Type:** Alleged multi-level marketing scheme, fraud (estafa), swindling, and illegal banking activities, using cryptocurrencies as a facade.

For the relevant Chilean offense, Article 161-A of the Chilean Penal Code establishes a *fixed statutory penalty range*: imprisonment of reclusión menor in any of its degrees plus a fine of 50 to 500 UTM, increased to reclusión menor in its maximum degree plus a fine of 100 to 500 UTM if the same person both obtains and discloses the material; penalties are therefore not left open-ended to generic criminal charges, asset freezes, and restitution alone but are set by law within these ranges.

Investigations began around 2020-2021, with arrests and legal actions continuing from 2022 through at least January 2025.

**Outcome:** Criminal proceedings are ongoing against several individuals involved in promoting and operating the scheme within Chile. The goal is to prosecute those responsible and recover funds for victims.

**CriptoNoticias (Spanish):** "Mind Capital, Kuailian y ARBIM: tres estafas cripto investigadas por la justicia chilena" (February 2022) - While focused on multiple cases, it details the ongoing investigation into Mind Capital.

**Diario Financiero (Spanish):** "Criptoestafas: Fiscalía formaliza a 10 personas por caso Generación Zoe, IM Forex y Mind Capital" (October 2022) - Details formalization of charges.

**Entity Targeted:** Chilean individuals and entities linked to the international "Generación Zoe" and "IM Forex" schemes.

**Violation Type:** Alleged pyramid scheme, fraud (estafa), swindling, and illegal financial operations, misleading investors with promises of high, guaranteed returns using crypto as an investment vehicle.

**Penalty Amount:** Criminal charges have been filed, leading to arrests and asset seizures. Specific penalties (prison sentences, restitution) are pending final judicial decisions.

**Date:** Investigations and arrests primarily occurred from mid-2022 onwards, with legal proceedings ongoing.

**Outcome:** Several individuals have been arrested and charged in Chile for their roles in promoting and operating the scheme. The primary operator of Generación Zoe, Leonardo Cositorto, was arrested in Argentina and is facing charges there. Chilean authorities continue to investigate and prosecute local affiliates.

**La Tercera - Pulso (Spanish):** "Las claves del caso Generación Zoe, la presunta estafa piramidal internacional que impacta a Chile" (April 2022) - Provides context on the scheme and its reach into Chile.

**Regulator Name:** CMF (Comisión para el Mercado Financiero)

**Entity Targeted:** General public, and implicitly, unregulated entities operating in the crypto space. Specific warnings target individual unregistered platforms.

Chile's regulatory framework under Resolution 79/2025 imposes strict oversight and reporting obligations on digital marketplaces and payment facilitators, with punitive enforcement measures (e.g., anti-avoidance rules) to combat non-compliance, tax evasion, and fraud—not merely preventative warnings.

**Penalty Amount:** No direct penalties attached to a warning. Penalties would come from future enforcement actions under the new FinTech Law, once fully implemented.

**Date:** CMF has issued multiple warnings against unregistered entities and potential scams throughout the last 3 years. The FinTech Law was published in January 2023.

**Outcome:** Increased public awareness about crypto risks. The FinTech Law now requires Virtual Asset Service Providers (VASPs) to register with the CMF and comply with various regulations (e.g., AML/CFT, consumer protection). This will enable direct regulatory enforcement actions in the future against non-compliant entities.

The CMF has issued multiple specific updated alerts in 2026 naming particular unregulated entities and platforms, indicating dynamic enforcement rather than static general warnings.

**CMF Official Press Release (Spanish):** "CMF advierte sobre entidades no reguladas que ofrecen productos o servicios financieros" (Ongoing, examples from various dates) - General warnings.

Example warning from July 2023: https://www.cmfchile.cl/portal/prensa/605/w3-article-122359.html (Search "CMF advierte" for more recent ones).

**Deloitte Article:** "Chile publishes its new Fintech Law: key takeaways" (January 2023) - English summary of the law.

**Ley N° 21.521 (Fintech Law):**

**Title:** Marco para la modernización de la legislación financiera

*Note: This is the primary law. The CMF is currently developing the specific secondary regulations (normativa secundaria) that will detail the requirements for VASPs.*

**Comisión para el Mercado Financiero (CMF):**

The CMF has already published its specific regulations regarding VASPs under the Fintech Law, which is now in effect.

**Unidad de Análisis Financiero (UIF):**

**Ley N° 19.913 (creates UIF and defines its powers):** https://www.bcn.cl/leychile/navegar?idNorma=213508

**UIF Circulars/Instructions:** VASPs should consult the UIF's official instructions, particularly those relating to reporting entities and AML/CTF obligations. For example, Circular N° 57 is highly relevant for defining reporting entities and their obligations.

**Comisión para el Mercado Financiero (CMF)** - Financial Market Commission:

**Role:** The CMF is the primary financial regulator responsible for supervising financial institutions, securities markets, and now, significantly, Virtual Asset Service Providers (VASPs). With the Fintech Law, the CMF is tasked with establishing the specific regulatory framework for VASPs, including registration, licensing, operational requirements, risk management, and consumer protection. It also oversees prevention of market abuse.

**Banco Central de Chile (Central Bank of Chile)**:

**Role:** The Central Bank is primarily responsible for monetary policy, financial stability, and the regulation of payment systems. While it does not directly regulate crypto assets as securities, it monitors their impact on financial stability, payment systems, and the monetary system. It has also explored the potential for a Central Bank Digital Currency (CBDC).

**Unidad de Análisis Financiero (UAF)** - Financial Analysis Unit:

**Role:** The UAF is Chile's financial intelligence unit, responsible for preventing and detecting money laundering and terrorist financing (AML/CFT). Entities dealing with virtual assets, even before the Fintech Law, were expected to comply with general AML/CFT regulations, and the Fintech Law explicitly reinforces this for VASPs under CMF oversight.

**Ley N° 21.521, known as the "Fintech Law" (Ley Fintech)**

**Date:** Published in the Official Gazette on **January 17, 2023**.

**Significance:** This is the cornerstone of Chile's current regulatory framework for virtual assets. It explicitly includes "virtual asset service providers" (proveedores de servicios de activos virtuales) within the scope of CMF regulation. It defines virtual assets and services (such as custody, exchange, and intermediation) and mandates that VASPs must register with the CMF and adhere to its regulatory requirements, including capital, operational, risk management, and consumer protection standards. The law also establishes sandboxes for financial innovation.

**URL (Official Gazette):** https://www.diariooficial.interior.gob.cl/publicaciones/2023/01/17/22421/01/22421.pdf (See Title IV "De los Prestadores de Servicios de Activos Virtuales")

**Ley N° 19.913 (Law on Money Laundering and Terrorist Financing)** and its subsequent modifications:

**Date:** Originally published **December 23, 2003**, with various amendments.

**Significance:** This law, enforced by the UAF, establishes the general AML/CFT framework in Chile. Even prior to the Fintech Law, entities dealing with virtual assets were generally considered "reporting entities" if their activities fell within the scope of financial services covered by this law, requiring them to report suspicious transactions. The Fintech Law reinforces the application of these rules to VASPs.

**URL (Consolidated Text via BCN):** https://www.bcn.cl/leychile/navegar?idNorma=220261

**Secondary Regulations (in development):** The Fintech Law mandates the CMF to issue specific regulations and circulars to detail how VASPs must operate, including licensing procedures, prudential requirements, and conduct standards. These regulations are crucial for the full implementation of the law and are expected to be published over time.

**Legality:** Crypto trading and the operation of crypto exchanges (now classified as VASPs) are **not banned** in Chile.

**Regulation under Fintech Law:** With the enactment of **Ley N° 21.521 (Fintech Law)**, entities providing virtual asset services (including exchanges, brokers, custodians, and certain forms of issuance) are explicitly brought under the regulatory oversight of the **CMF**.

**Registration/Licensing:** VASPs must register with the CMF and comply with its regulatory framework, which will include specific licensing requirements once the secondary regulations are fully developed.

**AML/CFT Compliance:** Exchanges are subject to strict Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) rules as supervised by the UAF and enforced by the CMF. This includes Know Your Customer (KYC) procedures, transaction monitoring, and suspicious activity reporting.

**Prudential Standards:** The CMF will impose requirements related to capital adequacy, operational risk management, cybersecurity, and consumer protection.

**Market Conduct:** Rules preventing market manipulation and ensuring fair practices will also apply.