The proposed law is meant to impose rules on different businesses in a rational approach. Chilean government Minister of Finance, Felipe Larraín, has presented a bill to control digital currencies and other monetary machinery. The minister forwarded the proposed law to the Congress from the US according to Ahora Noticias, a local media. The regulation has considered the controlling requirements of different business types and, rather than burdening the industry with a general rule, it is contemplating to apply regulations relatively. As Larrain explained the law to the local daily, he stated that taking into account the distinct types chosen by the business patterns of these platforms and seeing that various policies can offer different services, the bill will impose requirements comparably. It will govern based on the service type given and the risks it denotes to the consumers and for the monetary business.
The bill intends to effectively safeguard risks linked with the business
The report described that the cryptocurrency market in the South American nation is advancing like in the majority of the areas across the world; Chile has no regulations to control the industry. The minister further highlighted the dangers involved in crypto business and feels that the new laws, if passed, can alleviate unlawful activities using digitised currencies. According to Larrain, the rule imposed on these platforms would lessen risks associated with terrorism, financing, and money laundering, and boost the legal assurance with which they operate.
A win for the Crypto exchange
Even though there was hardly any government interference in the industry, Chilean banks played a harsh task towards the digital currency business. In 2018, the banks broke ties with the crypto asset exchanges running within Chile. Nevertheless, the exchanges formed an association and went to appeal to the court against the bank’s actions. At the beginning of 2019, an anti-monopoly court determined the case and ruled in favor of the digital exchanges as reported by Finance Magnates.