Ley Fintech in Chile: A promising scenario for the industry and growth towards financial inclusion

Published on Mar 01 2023.

reading time 11 minutes reading

Tax compliance and regulation are still major challenges for fintechs and other players that have been growing in the banking and payment industry in Latin America. However, Ley Fintech in Chile—recently enacted by the Chilean Department of Treasury—points to a future that is extremely exciting for the industry.

This new legislation was approved in October 2022 by the Chilean Congress and published at the beginning of January 2023 in the Diario Oficial de la República. It is great news and, not surprisingly, it was received with optimism.

The change should make it easier to access technologies capable of reducing costs for citizens and new services in a streamlined manner, thus enabling concrete progress towards Financial inclusion.

In addition, the project creates an open financial system (Open Banking) which reduces information asymmetry between different players, regulates payment initiation service providers and recognizes the use of crypto-assets as means of payment.

Therefore, the new law helps reduce barriers for the industry and sets a scenario that is rather promising. Want to learn more? In this article, we’ll explain Ley Fintech in Chile in more detail and its most important points and impacts for the ecosystem. Check it out!


Ley Fintech in Chile: What is it?


Ley Fintech in Chile is an important regulatory milestone for financial innovation in the banking and payment industry. The bill was approved by the Chilean Congress in October 2022 and sanctioned by President Gabriel Boric later on December 22nd.

More recently on January 4th, 2023, the law was finally enacted by the Department of Treasury, published by the country’s Federal Register as Law No. 21521.

Generally speaking, Ley Fintech addresses two very important issues for the digital banking means of payment in Latin America: Open Finance and the regulation of players and assets that have developed within the financial sector in recent years. It even provides for the regulation of payment solutions such as crowdfunding.


Learn more about Ley Fintech in Chile in the expert panel:


Most important points in the bill for Ley Fintech in Chile


There are different aspects to point out in the new Ley Fintech in Chile, which are relevant to be mentioned here:


An Open Financial System as a reality


As already mentioned, the first highlight of Chile's Fintech Ley is the regulation of a basic principle for the Open Finance: ownership and processing of consumer data.

According to the law, consumers are the owners of their own data, and it is the obligation of financial institution obtain each person's consent before sharing with other players. In addition, the law also determined a time limit for the validity of the data: only information from up to five years ago can be treated and shared.

According to the Country Manager at Dock in Chile, the new regulation creates an Open Financial System, which will enable financial service providers to exchange their clients’ financial information.

“It enables actors joining the industry to address information asymmetry and makes it easier for them to develop new financial service and product offerings”, he says.


Regulation for payment initiation service providers and fintechs


Another element in Ley Fintech in Chile that is worth mentioning is the regulation for fintech and other initiatives that act as payment institutions but they did not receive approval from the Central Bank and other government agencies to act as financial institutions.

Now it is expected that those players can rely on greater solidity and security to attract investors and develop new financial products.

Furthermore, the legislation also regulates service providers payment initiation, which may provide services for making electronic transfers from customer accounts to third-party accounts, operating as a means of payment without the need to use cards. “This generates greater competition in the payments market and reduces the use of cash.”, adds Hernán.


Crypto and Ley Fintech in Chile


Ley Fintech de Chile also pays special attention to criptocurrency, something that is quite innovative in the Latin American market.

The proposal determines that both the Central Bank of Chile and the Financial Markets Commission (CMF) of the country act in the regulation of the ecosystem of blockchain e Bitcoin in, especially on cryptocurrency exchanges — a topic that has been stirring important discussions about the cryptocurrency security.

It means that both of those agencies will be able to set demands and minimal requirements for services provided by exchanges and other players, bringing more transparency for the industry.

The new regulation also pays special attention to stablecoins: cryptoassets that have their value based on consolidated currencies, such as dollar and euro. It is great news for players considering to invest in solutions based on Crypto as a Service, since stablecoins are usually seen as safer investments by people who are not familiar with the world of cryptoassets.

According to Hernán, “therefore, the use of cryptoassets as means of paymentis now recognized, extending capabilities for the Central Bank of Chile to consider cryptoassets as financial instruments meeting the requirements set by the issuing institute, while their value is determined and informed according to currencies (stablecoins)".


Want to learn more about the context around the financial ecosystem in Chile? Check out the study Land of Opportunities, conducted by our Research Team at Dock:

Financial industry celebrates Ley Fintech enacted in Chile

Ley Fintech in Chile brings advantages that impact the entire financial ecosystem. We’ve detailed below some critical points for the industry’s optimism around Law No. 21521.


Modernized regulation


As new players, fintechs and exhanges are regulated, the means of payment and banking scenario is able to go beyond and get to a new level. Also, this regulatory milestone enables all additional benefits we’ll discuss later on.


Stronger industry


Greater regulation helps to foster payments industry partnership ecosystem, creating new possibilities for digital banks., which can now compete side by side with traditional banks.


Increased trust and visibility

The regulatory milestone brings more transparency and trust for the industry. With Ley Fintech in Chile, it is possible to attract users who probably wouldn’t see fintechs or cryptoassets as reliable financial solutions before the new regulation.


Regulators in the picture


Having BC and CMF in Chile involved is essential to ensure Ley Fintech’s success, since those institutions will set the rules for new players joining the industry and data handling within Open Finance.


New players and democratized finances with Ley Fintech in Chile


With regulation, players that don’t fall into the traditional payment institutions category are able to offer their service in a more accessible and affordable manner for their audience, which contributes to the bankarization and financial inclusion for the population.


Driven innovation


Since Ley Fintech in Chile regulates new business models, it also has the potential to work as a great actor in developing new technologies and products that are increasingly sophisticated.


Read also | Open X: What’s next after Open Finance?


Perspectives after Ley Fintech in Chile: What’s next?


The bill for Ley Fintech in Chile is a significant alert for the payment industry in Latin America—and it all suggests that it is an important step for the region to become a more consolidated global reference when it comes to technological innovation in that context.

In an interview, the Ministry of Finance in Chile Mario Marcel considers that Ley Fintech is “an appropriate bill that is on the right track, aiming to create more competence in the financial industry, drive innovation and regulate an industry that is still unregulated".

According to the Country Manager at Dock Chile, generally speaking, it is safe to say that "different laws governing traditional institutions are changing so that we can reach regulatory symmetry in providing similar financial services and decrease certain barriers for new fintechs to join in the industry, such as access to digital banks.".


Read also | Open Data: Is it the future for Open Finance?


Dock keeps a close eye on growth in Chile with optimism


Since its expansion in Latin America, Dock officially conducts operations in Chile and, therefore, keeps a close eye on all movements which will result in major growth for the payment industry in the country.

By leveraging our global, complete platform for banking and payments, Dock aims to work as a business partner for companies that will benefit from the new regulation and take part in this important change—which is critical for financial inclusion in Chile and, consequently, Latin America as whole.


Want to learn more about taking part in this transformation with us? Learn about Dock One:

Ley Fintech in Chile: Takeaways


  • The bill for Ley Fintech in Chile has been approved after a year in legislative discussion and recently enacted by the President of the country.
  • This new Chilean legislation for fintechs regulates players that have grown within the financial industry in the past few tears, such as fintechs, crypto exchanges, and even crowdfunding platforms.
  • Ley Fintech in Chile also proposes regulation for Open Finance in the country.
  • This regulatory milestone also determines that the Central Bank of Chile as well as the country’s Financial Market Commission (CMF) work on regulating the cryptocurrency ecosystem, bringing more transparency for the industry.
  • Ley Fintech in Chile brings more consolidation and trust that a lot of players need so that they can offer services at more competitive prices.
  • Apart from promoting technological innovation for financial services, the law will significantly contribute to expanding the access for Chilean citizens to products in the industry, thus helping increase financial inclusion in the country.


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