“Chile’s Fintech Law requires adjustments to address the challenges of the bitcoin market”

Chile’s Fintech Law, which has been in power for nearly two years, has been a major advance relating to the regulation of bitcoin (BTC) and cryptocurrencies in that nation. However, that normal wants to be adjusted in order that it covers all the challenges that contain the rising market.

This is what María Fernanda Juppet, government director of the Chilean cryptocurrency exchange CryptoMKT, considers, who in an interview with CriptoNoticias said that This rule “is a step forward” for the sectorhowever “there are still areas that require adjustments to address the specific challenges of the cryptocurrency market.”

Among these areas, he highlights “the need for clear definitions of digital assets and the creation of regulations that promote innovation without restricting it.” The government believes that “a constant dialogue between regulators, companies and experts is key to developing a regulatory framework that balances security and innovation.”

Juppet’s imaginative and prescient relating to the adjustments that should be made to the Fintech Law coincide with that of Sebastián Ovalle, compliance officer of the firm Fintual, who considers that this regulation has damaging features, reminiscent of the excessive calls for it establishes for firms stay operational.

Even so, the businesswoman Juppet maintains that this regulation, which got here into power in February 2023, It is a path in the direction of a “more collaborative” monetary ecosystem. He thinks that this laws, with the whole lot and the adjustments it requires, “promotes financial inclusion and establishes a framework that should allow companies in the sector to work more closely with traditional banks.”

“I believe that this relationship will evolve towards cooperation models, where cryptocurrencies complement traditional financial services, promoting greater integration and trust in the system,” he mentioned.

Thus, he agreed with Samuel Cañas, president of the FinteChile Association, who affirms that one thing constructive about this regulation is that it permits the trade to have a regulation that offers “certainty” to each shoppers and entrepreneurs.

Operating with “resilience”

Now, this state of affairs, the place there’s collaboration between each ecosystems, continues to be growing in Chile. In that nation, the banks They have an unwavering place not to work with firms of cryptocurrencies.

In 2018, CryptoMKT, which is one of the important bitcoin and cryptocurrency exchanges in Latin America, with a presence in Argentina, Brazil, Colombia, Peru, in addition to Chile, together with different platforms in the sector, reminiscent of Buda.com and OrionX; They sued a number of banking companies in Chile for closing their accounts, as reported by CriptoNoticias.

However, in December 2023, the Court for the Defense of Free Competition (TDLC) dominated towards these platforms and sided in favor of the banks. As Juppet put it, this “was a major setback in our search for a fairer and more competitive environment for fintech in Chile.”

“However, this decision has not stopped us. “We have strengthened our compliance and transparency policies, which have allowed us to maintain relationships of trust with other financial institutions,” he mentioned.

However, Juppet acknowledges that working in an surroundings the place banks have determined to shut their doorways to bitcoin and cryptocurrency firms “has been a considerable challenge.” Remember that, in your organization, this example of closures and restrictions affected its operations considerably.

“This limited our ability to offer comprehensive financial services and generated uncertainty in the fintech ecosystem in Chile,” the businesswoman recalled.

“However, we have demonstrated resilience by implementing strategies such as diversifying financial alliances and seeking alternatives to ensure operational continuity. Although it has not been easy, we remain focused on providing innovative solutions to our users and strengthening our position in the market.”

María Fernanda Juppet, government director of the CryptoMKT exchange.

Intensifying the dialogue

The directive revealed that the cryptocurrency exchange firm has intensified dialogue with regulators and sector gamers to promote regulation “that encourages fair competition and market development.”

He claims that this expertise has taught them to adapt shortly and innovate in options. “Which allows us to continue growing and adding value to the cryptocurrency ecosystem,” he mentioned.

For Juppet, Chile, though it has proven essential advances in regulation, doesn’t examine with Brazil or Mexico, which “have adopted more proactive approaches, including the integration of digital assets into their regulatory frameworks.”

The government says {that a} good observe to information that nation in the direction of sufficient regulation for the sector is to “foster spaces for public-private collaboration to guarantee that regulations adapt to local and global realities.” Besides, the implementation of regulatory “sandboxes”as in Brazil, may very well be key to encouraging innovation in Chile, he assured.

The board feedback that in Chile the adoption of cryptocurrencies as a method of cost has grown steadily, “driven by the need for more inclusive and efficient financial solutions.” He additionally explains that in that nation there was a notable improve in its use for remittances, digital commerce and technological providers.

“Sectors such as tourism and technology are leading this transformation, taking advantage of the advantages of cryptocurrencies to reduce costs and improve the customer experience. Chile, in particular, is advancing rapidly thanks to greater digitalization and openness to new financial technologies,” he mentioned.

Juppet’s imaginative and prescient is configured in a state of affairs wherein the Fintech Law, which in February will have a good time two years of its entry into power, be up to date as the bitcoin and cryptocurrency ecosystem advances.

A coherent perspective contemplating that the market is now not the similar in contrast to 2023. There are new areas to address If the actual purpose is to create an area for collaboration and integration between the Bitcoin ecosystem and the legacy monetary system.