Learn the details of Chile's new Fintech Law

On October 12, 2022, the Chamber of Deputies approved the Fintech and Open-Banking Bill, pending only its enactment and publication.

The Fintech Law represents a significant advance to promote financial innovation and greater competition in the financial system, as well as the development of new financial products and services for consumers.

Among the main aspects contemplated by the new regulation, we can highlight:

A regulatory framework is established for certain technology-based financial services that did not have their own legal framework, which generated regulatory problems that have hindered their development in Chile.
Entities engaged in brokerage and custody operations, provision of transaction platforms and advice on financial instruments (including crypto-assets and contracts for difference) will become regulated by the Financial Market Commission and will have to prove compliance with the requirements set by the authority in order to be able to operate.
An Open Banking System (Open Banking) is created to enable financial service providers to exchange customer financial information, thus addressing the information asymmetry faced by new entrants and facilitating the development of new financial product and service offerings.
Regulates payment initiation service providers, who will be able to provide services to make electronic transfers from customers’ accounts to third party accounts, operating as a means of payment without the need to use cards. This will generate greater competition in the payments market and reduce the use of cash.
The use of cryptoassets as means of payment is recognized, extending the powers of the Central Bank of Chile to consider as means of payment cryptoassets whose value is determinable and backed by money (“stablecoins”), which meet the requirements established by the issuing institute.
Various laws governing traditional financial institutions are amended to achieve regulatory symmetry in the provision of similar financial services, and certain barriers to entry for FinTech companies, such as access to checking accounts, are lowered.