Stablecoin issuer / redeemer in Chile

Crypto-assets: Stablecoins are primarily classified as crypto-assets under Law 21.521. This law defines "crypto-assets" broadly as digital representations of value or rights that can be stored or transferred electronically using distributed ledger technology or similar.

Not explicitly E-money/Payment Tokens/Securities:

E-money/Payment Tokens: The law does not explicitly classify stablecoins as "e-money" or "payment tokens" in a distinct category, but the services that involve them (e.g., acting as a means of payment) can fall under regulated "payment intermediation services" or "alternative transaction systems." If a stablecoin perfectly replicates the functions of fiat currency and is designed solely for payments, the CMF could interpret certain aspects through the lens of payment services.

A stablecoin could be classified as a security if its structure confers rights akin to those of traditional securities (e.g., profit-sharing, debt instruments, investment contracts). The CMF (Comisión para el Mercado Financiero) has the authority to assess this on a case-by-case basis under the specific framework and mechanisms established by the 2023 Fintech Law. However, most fiat-backed stablecoins are designed to avoid this classification.

Crypto-Asset Service Providers (CASPs): The key approach is to regulate the services provided with crypto-assets. Any entity offering services related to stablecoins (e.g., exchange, custody, intermediation, advising) will be considered a Crypto-Asset Service Provider (CASP) and subject to the CMF's oversight.

Ley Nº 21.521, de 2023, Ley Fintech: Establece el marco regulatorio aplicable a las empresas de tecnología financiera (Fintech).

Risk Management: CASPs dealing with stablecoins will be required to implement comprehensive risk management policies. For fiat-backed stablecoins, this will likely translate into requirements for the quality, segregation, and regular auditing of their backing assets.

Asset Segregation: The law empowers the CMF to require the segregation of client assets from the CASP's own assets, which is critical for stablecoin reserves.

Transparency and Disclosure: Detailed disclosure requirements about the backing assets, their custodians, and audit reports are expected to ensure the stability and transparency of stablecoins.

Capital Requirements: CASPs will also be subject to minimum capital requirements, which implicitly supports the financial robustness needed to manage stablecoin operations and associated risks.

Authorization/Registration with CMF: Entities providing "crypto-asset services" (which would include the issuance and management of stablecoins as part of a broader service like exchange or custody) will be required to apply for authorization or registration with the Comisión para el Mercado Financiero (CMF).

Scope: This applies to any entity that offers the exchange, custody, intermediation, or other services involving crypto-assets, including stablecoins, to the public in Chile.

Transparency and Clear Terms: CASPs will be required to provide clear and comprehensive information to users regarding the nature of the stablecoin, its backing, and the terms and conditions for its acquisition and redemption.

Safeguarding Client Assets: The CMF's forthcoming regulations on safeguarding client assets and operational resilience will implicitly support the expectation that users can redeem their fiat-backed stablecoins at par.

CMF Oversight: Any failure by a licensed CASP to honor redemption claims for a fiat-backed stablecoin would likely fall under regulatory scrutiny and potential enforcement actions by the CMF.

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.

Anti-Money Laundering (AML) / Counter-Terrorist Financing (CTF): Comply with existing AML/CTF regulations, aligned with FATF recommendations, which are enforced by the Financial Analysis Unit (UAF) in Chile.

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.

Evidence fact cl.custopy.identification-client-assets-must-be not found (may have been renamed).

Protection in Insolvency: This segregation aims to protect client assets in case of the VASP's insolvency or bankruptcy.

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.

Identification and Verification:

Individuals: Obtain and verify identity (e.g., full name, ID number, date of birth, nationality, address, contact information) using reliable, independent source documents, data, or information.

Legal Entities: Obtain and verify legal form, name, address, contact information, legal representative(s), and information on beneficial ownership.

Beneficial Ownership: Identify and verify the natural person(s) who ultimately own or control the customer, or the natural person(s) on whose behalf a transaction is being conducted.

Purpose and Nature of Business Relationship: Understand the purpose and intended nature of the business relationship or transaction.

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).

Source of Funds/Wealth: For high-risk customers or transactions, VASPs must take reasonable measures to establish the source of funds and, where appropriate, the source of wealth.

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.

Regulator Name: CMF (Comisión para el Mercado Financiero)

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.

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.

Impuesto de Primera Categoría (First Category Tax): Businesses are subject to this corporate income tax, currently at a general rate of 27%. (Note: Certain smaller companies under specific simplified regimes like ProPyme might have lower rates, e.g., 25%).

Impuesto Global Complementario (Individuals) / Impuesto Adicional (Foreigners): After the First Category Tax, individuals who are owners or partners of the business (or foreign beneficiaries) will be subject to personal income tax (Impuesto Global Complementario for residents or Impuesto Adicional for non-residents) on distributed profits. A credit for the First Category Tax paid is generally available to mitigate double taxation.

Foreign Assets (Form 2897): If cryptocurrencies are held outside Chile and their value exceeds certain thresholds (currently US$50,000 equivalent), they must be reported on Form 2897 ("Declaración Jurada Anual sobre Inversiones en el Extranjero") as part of a general requirement to declare foreign assets.

Annual Income Tax Return (Form 22): All income derived from cryptocurrencies, including capital gains from occasional sales, habitual trading profits, mining income, staking rewards, etc., must be declared in the annual personal income tax return (Form 22, "Declaración Anual de Impuestos a la Renta") submitted in April each year.