Self-custodial wallet / non-custodial software in Chile
Publisher of software where users hold their own private keys. The publisher never holds, controls, or has access to user funds.
Self-custodial wallet is conditionally permitted in Chile without local incorporation, subject to AML obligations and none licensing burden.
Verdict Details
- Permitted
- conditional
- Local entity required
- No
- Licensing burden
- None
- Last updated
- 2026-07-13
AML Obligations
- No AML obligations attach to a non-custodial software publisher — the publisher never holds, controls, or has access to user funds, and thus does not qualify as a 'custody provider' under the Fintech Law (Ley N° 21,521) or UAF Circular N° 57's definition of PSAV.
- UAF Circular N° 57 designates 'Providers of Virtual Asset Services' (PSAV) as obligated entities, but its definition covers custody/administration of virtual assets or instruments enabling control over virtual assets — which the non-custodial software publisher does not perform.
Key Restrictions
- The software publisher must not hold, control, or have access to user private keys or funds — any feature that shifts control to the publisher (e.g., remote key storage, backup services with access) would trigger VASP/custody classification under Ley N° 21,521.
- The publisher can distribute wallet software (browser extension, mobile app, desktop app) without a license, but must not offer custodial services, exchange services, or any fintech-regulated activity listed in the Fintech Law.
- Consumer-protection and disclosure rules under Chilean law (e.g., transparency in terms of service, data privacy under Ley N° 19,628 on personal data protection) still apply as general law obligations, even without a specific crypto regulatory trigger.
Key Risks
- Regulatory ambiguity persists: the CMF has not issued specific guidance distinguishing non-custodial wallet software from regulated VASP activities, creating enforcement risk if the regulator takes a broad interpretation of 'instruments enabling control over virtual assets.'
- Reputational and criminal risk: Chilean authorities (Fiscalía) have aggressively pursued crypto-related fraud cases (Mind Capital, Generación Zoe, IM Forex); a non-custodial wallet distributed without proper consumer warnings could be scrutinized if used in schemes.
- No local entity is required, but if the publisher markets directly to Chilean residents (Spanish-language app, Chile-specific marketing), the CMF or UAF could assert jurisdiction more aggressively than for a passive global software release.
Evidence
This verdict synthesizes the following facts. Each fact links to its primary source(s).
Ley N° 21.521 (Fintech Law):
Title: Marco para la modernización de la legislación financiera
Exchanges: Platforms facilitating the exchange between virtual assets and fiat currencies, or between one or more forms of virtual assets.
Custody Providers: Entities providing safekeeping or administration of virtual assets or instruments enabling control over virtual assets on behalf of natural or legal persons.
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."
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.
Custody and/or administration of virtual assets or instruments enabling control over virtual assets.
Any entity intending to provide virtual asset custody services in Chile must register with the Financial Market Commission (CMF) via the Financial Services Register, as established by the Fintech Law.
Authorization and Registration: Providers of virtual asset services, including custody, must obtain authorization and be registered with the CMF.
Ley N° 21.521: https://www.bcn.cl/leychile/navegar?idNorma=1189025 (Official source: Biblioteca del Congreso Nacional de Chile)
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.
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.
Verdict Attribution
- Source:
- AI-Generated · Unreviewed
- AI synthesized:
- 2026-07-13 (deepseek-chat)
- Last updated:
- 2026-07-13
- Confidence:
- medium
This verdict was produced by an AI model from the underlying facts. Confirm with counsel before relying on it for material decisions.
Conditional — a publisher of purely non-custodial wallet software (never holding private keys or user funds) does not trigger VASP licensing or AML obligations under Chile's Fintech Law or UAF Circular N° 57, but must avoid any function that could be construed as custody, administration, or control over virtual assets to remain outside the regulated perimeter.
Questions this verdict aims to answer
- Does software publishing trigger VASP / MSB classification?
- Do AML obligations attach when no custody exists?
- What disclosure or consumer-protection rules apply?