DeFi protocol frontend in Chile

Ley N° 21.521 (Fintech Law):

Chile’s 2023 Fintech Law and General Rule No. 502 now directly regulate all crypto service providers through a formal licensing and registration regime, replacing earlier implicit warnings. The entity targeted is no longer just the general public and unregistered platforms, but all market participants subject to enforceable obligations under the Securities Market Law.

Comisión para el Mercado Financiero (CMF):

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

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.

Exchanges: Platforms facilitating the exchange between virtual assets and fiat currencies, or between one or more forms of virtual assets.

Payment Processors (Crypto-related): If they facilitate the transfer of VAs or stablecoins, or perform services similar to payment service providers using VAs, they would fall under the VASP definition. The law specifically includes "platforms that offer any type of payment initiation service."

Authorization and Registration: Providers of virtual asset services, including custody, must obtain authorization and be registered with the CMF.

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.

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.

Identification and Verification:

Ongoing Monitoring: Continuously monitor the business relationship and transactions to ensure they are consistent with the VASP's knowledge of the customer, their business, and risk profile, including the source of funds.

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.

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).

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.

Circular N° 49 de la UAF: Establishes general instructions on risk management and prevention of ML/FT for obligated entities, including policies, procedures, internal controls, and designated compliance officers.

Circular N° 50 de la UAF: Provides instructions for identifying Politically Exposed Persons (PEPs).

Circular N° 51 de la UAF: Establishes instructions regarding the detection and reporting of transactions related to terrorism financing and compliance with international sanctions lists.

Circular N° 52 de la UAF: Details instructions for conducting risk assessments for ML/FT.

Circular N° 58 de la UAF: Modifies and updates the instructions for reporting suspicious activities (ROS) and other information to the UAF.

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.

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.

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.

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.