Centralized exchange in Chile

Ley N° 21.521 (Fintech Law):

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.

Requirements: The Ley Fintech explicitly mandates the segregation of client assets from the VASP's own assets.

Prohibition of Commingling: Entities providing custody services for virtual assets are prohibited from mixing client assets with their own proprietary assets.

Identification: Client assets must be clearly identified as belonging to clients and separated from the VASP's balance sheet.

Capital and Guarantees: Regulated entities, including VASPs offering custody, must maintain adequate own capital and provide guarantees to back their operations and cover potential liabilities. These requirements are intended to protect clients and ensure the stability of the service provider.

UAF Circular N° 57 (Circular N°57 de la UAF): This is the most crucial piece of regulation for VASPs. Issued by the UAF, Circular N° 57 (published in October 2020) explicitly designates "Providers of Virtual Asset Services" (PSAV) as obligated entities under Law N° 19.913. This means VASPs must comply with all AML/CFT obligations applicable to other financial institutions.

Ley N° 19.913, que Crea la Unidad de Análisis Financiero y Modifica Diversas Disposiciones en Materia de Lavado y Blanqueo de Activos (Law N° 19.913, which Creates the Financial Analysis Unit and Modifies Various Provisions Regarding Asset Laundering and Blanqueo de Activos): This is the main AML/CFT law in Chile, establishing the UAF and defining the framework for preventing and prosecuting money laundering and terrorist financing.

Obligation to Report: VASPs are required to report any operation, transaction, business, or activity that they identify as unusual or suspicious, as well as any attempts to carry out such activities, regardless of the amount.

Identification and Verification:

Risk-Based Approach: Apply CDD measures according to the level of risk associated with the customer, product, service, or geographic area. Higher risk scenarios require Enhanced Due Diligence (EDD).

Politically Exposed Persons (PEPs): Implement enhanced due diligence (EDD) measures for PEPs, including obtaining senior management approval for establishing business relationships and taking reasonable measures to establish the source of wealth and source of funds.

UAF Circular N° 79 was issued and became effective on July 11, 2022. This circular brought PSAVs under the scope of AML/CFT obligations in Chile, including the principles of the Travel Rule.

For transfers between VASPs (VASP-to-VASP), the originating VASP must obtain and transmit required originator and beneficiary information for transactions equal to or exceeding USD/EUR 1,000 (or its equivalent in other currencies or virtual assets).

For transfers from an unhosted wallet to a VASP, or from a VASP to an unhosted wallet, VASPs are expected to obtain the necessary originator or beneficiary information as appropriate, often through enhanced due diligence.

PSAVs must develop risk-based approaches to determine the level of due diligence required and establish communication channels for information sharing with other VASPs.

Suspicious Transaction Reports (STRs): Regardless of any threshold, any transaction deemed suspicious must be reported to the UAF.

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.

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.

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. 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.

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

Entity Targeted: General public, and implicitly, unregulated entities operating in the crypto space. Specific warnings target individual unregistered platforms. Violation Type: Operating outside regulatory oversight, potential for fraud or financial instability. The warnings themselves are preventative, not punitive. Penalty Amount: No direct penalties attached to a warning. Penalties would come from future enforcement actions under the new FinTech Law, once fully implemented.