Chilean Regulators Submit New Crypto and Blockchain Regulation Proposal to Congress

Chile is trying to control and regulate virtual currencies with a new bill presented to Congress. The information was released by Cointelegraph Spain a few days ago. The new bill was presented by the Minister of Finance of Chile, Felipe Larraín.

Chile Presents New Bill to Regulate Cryptocurrencies

The virtual currency market is becoming regulated around the world and different governments are trying to control the space. Larraín explained that the regulations will be proportional to the businesses and that these regulations will also be adapted to different business models.

Ahora Noticias, a local news site, explained that the intention is to provide a flexible bill. Chile is one of the most active countries in South America in the crypto market. There are several crypto exchanges operating in the country and other firms as well.

It is worth mentioning that Chilean companies such as Buda had some problems with banking institutions in the country. Banks did not want to offer services to these virtual currency exchanges in Chile, which created some issues with the services they provided.

Nonetheless, Larraín explained that there are also risks while investing in virtual currencies:

“Regulation of these platforms would mitigate some of the risks, such as money laundering and terrorist financing, and increase the legal certainty with which they operate. We want to adequately protect against the risks associated with this kind of activity.”

Regulatory agencies are trying to protect investors that could be affected by companies that do not follow current regulations and that are not controlled by institutions.

There are different jurisdictions that are starting to regulate the digital currency market and blockchain technology. Two of them are Malta and Switzerland. These countries are welcoming virtual currency projects and blockchain startups.

The South American region is also growing. Chile has already three Bitcoin ATMs and Colombia and Argentina are also attracting several companies from the crypto market. Binance, for example, decided to invest in startups in Buenos Aires and it could open the next fiat-to-crypto exchange.