Felipe Larrain, the minister of finance of the Chilean government recently submitted a bill that proposes the regulation of crypto. The bill also seeks to govern other financial technologies.
The bill has considered the needs of different businesses. Instead of suggesting general rules that would be unfair to some firms, it aims to enact balanced rules. Larrain tabled this bill to Congress while in the United States.
Speaking to a local media outlet, Larrain said,
Taking into account the different forms taken by the business models of these platforms and also the fact that different platforms can provide different services, the regulation will apply requirements proportionally, regulating according to the type of service provided and the risks that this implies for the users and for the financial market.
The Crypto Industry in Chile is Growing Rapidly
This news comes as the crypto sector continues showing fast growth in Chile. Larrain suggested this bill to help reduce the illegal activities in the space. According to him, the country’s law cannot govern the crypto industry. He noted that this is dangerous as it exposes the country’s citizens to the risks involved in crypto trading.
A regulation to these platforms would mitigate some of these risks, such as money laundering and financing of terrorism, and increase the legal certainty with which they operate. We want to adequately protect the risks associated with this activity.
Crypto Exchanges Set to Trade Freely
The news of this bill is good for crypto exchanges in Chile. Although the Chilian government does not interfere with crypto activities, the banks in the country do not support crypto firms. Last year, Banco del Estado de Chile, the only bank that was still offering services to crypto startups severed all ties with the sector. According to a report, Banco del Estado de Chile stopped offering banking services to three crypto exchanges dubbed Buda, Orionx, and Cryptomkt.
Following this event, the firms joined hands and went to court to appeal the decision by the banks. Early this year, a court heard the case and ruled against the banks. The court conducted a poll before passing its judgment in favor of the crypto exchanges. The majority of the judges favored the crypto exchanges. However, the decision to order banks to offer banking services to crypto firms was not undisputed.
Do you think Chile’s legislators will pass Larrain’s bill into law? Let us know in the comments below.
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