The Chilean Minister of Finance Felipe Larraín has tabled a bill to regulate digital currencies and other financial technologies.
According to the local news outlet Ahora Noticias, the minister announced the bill during a recent trip to the United States.
Larraín reportedly noted that the requirements introduced by the new regulation would be “proportional to businesses.” He explained that the rules would take into account that various companies have different business models, and deliver different services that imply different risks for the users and the financial market.
Explaining the bill, Larraín told the local daily that “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.”
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The report detailed that the cryptocurrency industry in the South American country is growing and, like most of the regions across the globe, Chile does not have proper rules to regulate the industry. The minister also emphasized the risks involved in crypto trading and that the new rules, if passed, can mitigate illegal activities using digital currencies.
“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,” Larraín added.
A victory for crypto exchanges
Though there was minimum government interference in the sector, Chilian banks took a hostile stance towards crypto-related businesses. Last year, banks cut their ties with digital asset exchanges operating within the country.
The exchanges, however, formed a consortium and went to court to appeal against the banks’ decisions. Earlier this year, an anti-monopoly court heard the case and ruled in favor of the crypto exchanges, Finance Magnates reported.