In Chile, fintech companies operate under a regulatory framework that varies by service type. Companies subject to governmental supervision regulated under the Fintech Law (Law 21,521)—for further detail on these regulated services see question 3 below—are primarily overseen by the Financial Market Commission (CMF), which handles licensing, reporting obligations, and operational compliance. The Financial Analysis Unit (UAF) enforces anti-money laundering and counter-terrorism financing regulations.

For payment-related fintechs, multiple authorities share oversight. The Chilean Central Bank oversees monetary policy and payment system stability, while the CMF supervises financial service providers’ compliance with sector-specific regulations. The UAF continues to enforce AML and CFT obligations in this space.

Even nonregulated fintech companies must also comply with broader regulations. The National Consumer Service (SERNAC) oversees consumer protection in financial services, and the Internal Revenue Service (SII) monitors tax compliance. The forthcoming Data Protection Agency will also oversee privacy and data protection regulations—a crucial consideration for fintechs handling personal data.

The compliance burden poses a significant risk for regulated fintech companies due to strict licensing, reporting, and operational requirements. Though the CMF’s proportional compliance system offers lighter initial obligations for smaller firms, the requirements remain demanding. As companies grow, they encounter more complex governance, disclosures, and risk management demands. While this system offers some flexibility for early-stage startups, it creates scalability challenges that require ongoing investment in compliance infrastructure.

The absence of a fintech regulatory sandbox compounds these challenges, requiring companies to fully comply with regulations from day one without the ability to test new financial models in a controlled environment. This stifles innovation, as companies may hesitate to launch new products due to regulatory interpretation and enforcement uncertainty. Moreover, potential new requirements from the CMF or UAF could further complicate long-term strategic planning.

A solution could be to reduce the regulatory burden for new companies to help them explore business viability, or to establish a regulatory sandbox where companies can test new products in a controlled environment before full launch.

The licensing requirements vary by service type. The main distinction is between fintech services regulated under Fintech Law, those related to payment services under Law 20,950 (Payment Methods Law) – both under supervision of the CMF and subject to a licensing process – and nonregulated fintech services (i.e., insurtech, regtech, among others).

A. Fintech Services regulated under Fintech Law.

Companies must apply to the CMF with service details and corporate documentation to provide regulated Fintech services. Regulated services include Crowdfunding, Alternative Trading Systems (i.e, exchanges), Financial Instruments Custody, Financial Instruments Brokerage, Financial Instruments Order Routing, Investment Advisory, and Credit Advisory.

A regulated service is considered as rendered in Chile when:

1. it is materially performed in the country by authorizing or contracting physical or electronic means to render services in the country; or
2. when using any means of communication to direct the offer of services regulated by the Fintech Law to people residing in Chile, regardless of the country of origin of such means.

Foreign entities providing services in Chile may incorporate a local subsidiary or continue providing the services from abroad by incorporating an agency in Chile. In either case, the local subsidiary or the agency must file for its registration and authorization to operate with CMF.

B. Payments-related-Fintechs.

B.1 Issuers of payment cards and Acquirers.

Non-banking companies seeking to issue pre-paid and/or credit cards or render acquiring services of payment cards shall apply for a license for non-banking issuer of pre-paid and/or credit cards or for providing card payment acquiring services before providing any service or even be incorporated as a company. This is a two-stage process where the CMF must first authorize the establishment of the entity and subsequently grant it permission to operate. Among other requirements, this includes conducting stress and performance tests.

B.2 Payment Service Providers (PSP).

Under Chilean regulations, PSP activities are generally not regulated. However, Subchapter III.J.2 of the Chilean Central Bank Financial Compendium outlines certain services they may provide, such as transaction authorization, affiliation management, provision of payment terminals and digital payment channels, and other related services — excluding settlement and payment of funds to affiliated entities.

If PSPs exceed 50% of the transaction settlement and payment threshold, they must be regulated as Sub-acquiring Acquirer. Likewise, if a Sub-acquiring Acquirer —or a PSP— surpasses 100% of this threshold, they must be regulated as an Acquirer.

The threshold is calculated as follows:

Where:

• Ti : Settled and/or paid transactions under the sub-acquirer model on behalf of Issuer or Operator “i,” considered individually during the current period, over the previous 12 months.
• N: The total number of Issuers or Operators with which the sub-acquirer maintains an active contract or agreement for settlement and/or payments.
• T: The total amount of payments to affiliated entities made by all Operators governed by these regulations, regardless of whether the payment liability falls directly on those Operators or on the Issuers, during the previous 12 months.

B.3 Cross-border acquiring

Cross-border acquiring is regulated in Chile. Entities aiming to render cross-border acquiring or sub-acquiring shall apply for a license with CMF as an Operator or Sub-acquirer operator, respectively, indicating that they will provide this service.

Chile does not have a formal regulatory sandbox in its financial regulations. However, the Open Finance System regulations include supervised testing and experimentation mechanisms.

Under Fintech Law, the CMF can conduct pilot tests with interested institutions to define technical and operational aspects of the Open Finance System. CMF’s secondary regulation also establishes a “Testing Area” where APIs can be tested using fictitious data without affecting production systems.

In Chile, crypto assets are regulated under the Fintech Law rather than securities laws. This framework covers ICOs, crypto exchanges, custody, and brokerage.

1. ICOs: Entities offering crypto assets must register as Crowdfunding platforms with the CMF. These platforms must meet reporting and governance requirements.
2. Crypto exchanges: Operating as Alternative Trading Systems, they must fulfill reporting obligations, maintain operational capacity, and implement risk management.
3. Custody: Providers must register with the CMF and comply with reporting, operational, guarantees and/or equity, and governance requirements.
4. Brokerage: Entities intermediating crypto assets must register with the CMF and meet similar requirements for reporting, operations, guarantees and/or equity, and risk management.

Cryptocurrency exchanges must register with the UAF after obtaining a fintech license. To comply with suspicious transaction reporting requirements, regulated entities must:

1. Report suspicious operations and cash transactions over USD$10,000 to the UAF.
2. Maintain records of cash transactions, KYC documentation, PEP transactions, and electronic transfers.
3. Implement continuous KYC procedures to understand client activities and operations.
4. Apply risk-based KYC for electronic transfers of USD$1,000 or more.
5. Monitor and report PEP transactions with enhanced due diligence.
6. Maintain an AML/CFT Prevention Model.
7. Monitor UAF warning signs for suspicious activities.
8. Review UN Security Council resolution lists on the UAF website.
9. Apply enhanced measures for FATF-monitored jurisdictions.
10. Report changes in legal status or compliance personnel within 5 working days.
11. Collect beneficial ownership information from legal entities.

Companies offering crypto-related services—including exchanges, custody, or brokerage—must obtain a CMF license and comply with AML/CFT regulations. This requires implementing robust KYC procedures, transaction monitoring, and risk assessment systems to prevent illicit activity. Firms must also submit periodic financial reports and meet transparency obligations for regulatory oversight.

The regulatory framework, however, offers several key advantages. Chile’s stable political environment and strong rule of law provide regulatory certainty, with clear guidelines for crypto service providers. The framework embraces proportionality, allowing firms to adjust compliance requirements according to size, business volume, and risk profile.

The regulations also protect access to banking services—banks cannot arbitrarily deny, suspend, or close accounts for regulated crypto service providers. Furthermore, foreign companies can operate without incorporating in Chile by establishing a local agency.

These balanced regulations and supportive tools position Chile as a potential gateway and crypto hub for the region.

Cryptocurrency companies in Chile must adhere to governmental tax reporting obligations, ensuring compliance with regulations set by the SII. Key measures include:

1. Proper Tax Classification: cryptocurrencies are treated as intangible assets for tax purposes, meaning transactions involving digital assets are subject to capital gains tax, but exempt from VAT.
2. VAT and Income Tax Compliance: cryptocurrency sales are generally exempt from VAT, but businesses engaging in crypto-related services (e.g., exchanges, wallets, brokers) are subject to VAT. Income from crypto transactions must be reported as part of annual tax filings, with gains subject to corporate or personal income tax rates. The SII may require supporting documentation to verify calculations.
3. Transaction Record-Keeping: Companies must maintain detailed records of all crypto transactions, including timestamps, counterparties, and valuations in Chilean pesos unless they get authorization to keep accounting records in USD – at the time of the transaction for accurate tax calculations.
4. Integration with the SII’s Reporting Framework: as regulations evolve, cryptocurrency platforms and exchanges must report user transactions directly to the SII.
5. Engagement with Tax Authorities: companies should proactively seek guidance from tax professionals and the SII to ensure full compliance with reporting obligations and avoid potential fines or penalties.

Blockchain companies operating in Chile must navigate Law No. 19,628 on Data Protection, ensuring compliance while preserving the decentralized nature of their networks. Key considerations include:

1. Data Minimization and Pseudonymization: to mitigate risks associated with immutable ledgers, companies should limit on-chain personal data storage and apply encryption or pseudonymization techniques.
2. Lawful Data Processing and Consent: personal data processing requires explicit user consent, except in cases where legal exceptions apply (e.g., publicly available data or financial records).
3. Right to Modification and Deletion: given blockchain’s immutability, off-chain storage solutions, and smart contracts should be leveraged to enable compliance with Chilean ARCOP rights (Access, Rectification, Cancellation, Opposition, and Portability).
4. Cross-Border Data Transfers: the amendments to the data protection law that will come into force in December 2026 introduce stricter regulations, allowing transfers only to jurisdictions with adequate data protection standards. Companies must ensure compliance through contractual safeguards or user consent mechanisms.
5. Robust Compliance Framework: Blockchain firms should implement AML/KYC policies, enforce security measures, and uphold employee confidentiality obligations to align with regulatory expectations.
6. Regulatory Oversight and Future Developments: once created, the Data Protection Agency will oversee compliance and impose fines of up to USD $640,000 for violations. Continuous monitoring of regulatory updates is essential to mitigate legal risks.

Chile offers a significantly more flexible immigration framework than the United States, making hiring international talent easier for fintech companies.

The Immigration and Foreigners Law No. 21,325 governs the entry, stay, residence, and exit of foreigners, as well as their rights and duties. The law provides foreign professionals several visa options for paid work, including the Residence Visa Subject to Contract and the Temporary Residence Visa for Professionals and Technicians.

The “Tech Visa” is particularly notable for the fintech sector—an innovative tool explicitly designed to attract technology and finance experts. This visa streamlines the entry and residency process, reducing bureaucratic barriers and increasing recruitment of highly qualified professionals. This allows fintech companies to compete globally while maintaining compliance with local regulations.

To obtain the Tech Visa, companies must secure a Certificate of Sponsorship through InvestChile, Start-Up Chile, or the Undersecretary of Economy. For workers outside Chile, companies must request a personalized invitation letter for country entry. Key requirements include a minimum three-month employment contract and professional or technical expertise in technology.

These policies position Chile as an attractive and strategic destination for international fintech talent.

Fintechs entering the Chilean market face a rigorous and evolving regulatory framework under either the Fintech Law or the Payment Methods Law, along with various sectoral regulations. Companies must obtain a CMF license to provide services, ensuring compliance with standards for security, transparency, solvency, and cybersecurity.

For those required to participate in the Open Finance System —currently being implemented— and those voluntarily registered, strict interoperability, information security, and cybersecurity protocols must be followed. These protocols, defined by authorities, govern the sharing of financial information with consent from information holders.

Companies must also implement robust mechanisms to prevent money laundering and terrorism financing, as required by the UAF while protecting personal data under Law No. 19,628. Additionally, fintechs must meet tax obligations set by the SII and follow consumer protection regulations by maintaining transparent contracts and service conditions.

Given this complex regulatory framework, success depends on securing specialized legal counsel, building internal compliance teams, and maintaining an open dialogue with regulatory authorities to adapt to changes swiftly.

When approaching market entry in Chile, a fintech must develop a comprehensive plan that addresses its target client profile, competitive landscape, and potential financial institution partnerships. While Chile has a high banking penetration, significant financial inclusion and service digitalization opportunities exist. This insight enables fintechs to create tailored products and services that address specific needs while attracting a diverse customer base.

The Chilean competitive landscape features established players and fintech companies already successful in digital payments, alternative financing, wealth management, and investment platforms. Companies must differentiate themselves through technological innovation, exceptional user experience, and a clear value proposition to succeed.

Strategic partnerships with established banks and financial institutions prove valuable, offering access to existing infrastructure, enhanced credibility, and an expanded customer network—all of which strengthen a fintech’s position and accelerate growth.

A successful entry strategy in Chile requires three key elements: thorough customer analysis, market differentiation, and strategic partnerships. Together, these elements enable rapid adaptation and sustainable growth in this dynamic market.

Entering the Chilean fintech market involves managing various financial and operational risks to ensure a smooth transition and sustainable growth. Fintechs operating under CMF supervision must comply strictly with the Fintech Law and CMF regulations, which creates regulatory and compliance risks. Adapting appropriately to this framework is crucial to avoid penalties, maintain operational stability, and preserve market confidence.

These companies often face financial challenges, particularly in their early stages. To address this, they must diversify capital sources and implement strict operating cost controls to maintain adequate liquidity.

Operationally, CMF supervision requires robust cybersecurity, risk management, and transparency measures. Regulated fintechs must implement comprehensive information security systems for transaction monitoring and data protection.

The competitive landscape, with established players and new entrants, demands clear differentiation through innovative value propositions and strong corporate governance aligned with regulatory requirements.

To mitigate these risks effectively, key strategies include engaging specialized legal counsel, building dedicated regulatory compliance teams, and cultivating a culture of continuous improvement. CMF-supervised fintechs can operate securely and competitively in Chile’s dynamic market through these measures.

In Chile, fintechs regulated by the CMF may outsource certain business functions offshore, provided they maintain rigorous internal controls and comply with all local regulations. While the law permits outsourcing, it imposes strict requirements on regulated fintechs, particularly regarding data protection, cybersecurity, and anti-money laundering—all areas under CMF oversight.

To manage these risks effectively, companies must ensure their external providers meet Chilean standards through comprehensive supervision and auditing mechanisms for continuous operational monitoring. Detailed contracts must clearly define responsibilities, service levels, and oversight procedures, as the regulated fintech maintains ultimate responsibility for operational quality and security.

This framework enables regulated fintechs to achieve operational efficiencies and cost savings while maintaining regulatory compliance and process integrity, thereby preserving stability and trust in the financial ecosystem.

In summary, Chilean law permits service outsourcing when fintech companies implement a robust control and compliance framework that ensures service quality and security.

In Chile, fintechs can protect their algorithms and software through copyright under Law No. 17,336 on Intellectual Property. This protection begins automatically when the original work is created and can be registered with the Intellectual Property Registry, managed by the Intellectual Rights Department of the National Service of Cultural Patrimony. While registration is not mandatory, it establishes a presumption of authorship that proves valuable in litigation cases.

Copyright protection extends to the software’s source code and design and structure, giving fintechs exclusive rights over their software’s use and distribution. While Chilean law does not permit the patenting of algorithms directly, they may be protected as part of a technical process if they meet the requirements of novelty, inventive steps, and industrial application under Law 19,039 on Industrial Property.

Additionally, fintechs can implement other protective measures, such as trade secrets and confidentiality agreements with employees, external developers, and business partners.

Trademark registration is the primary legal tool allowing fintechs to protect their brand identity in the market. In Chile, the National Institute of Industrial Property (INAPI) handles this process under Law No. 19,039 on Industrial Property. Through registration, fintechs secure exclusive rights to use their name, logo, and other distinctive elements.

After trademark registration, companies should implement ongoing protection strategies. This includes regular monitoring of both the market and INAPI’s records to identify applications for similar trademarks that might infringe on fintech’s rights, allowing for timely opposition. Companies can pursue legal action to stop unauthorized trademark use and seek monetary compensation if infringement occurs.

Chile has no specific regulations or established judicial precedents regarding open-source software licenses.

Fintech companies widely use open-source software because it offers cost benefits, flexibility, and faster technological development. However, fintechs must carefully consider the license terms, which often include specific restrictions on distribution, modification, and commercial use.

To ensure compliance with open-source licenses, fintechs should perform regular internal audits and verify that their software adheres to all license requirements. These requirements might include sharing source code with users or limiting how the software can be integrated into commercial products. Companies should establish clear policies for open-source software use, provide legal training to technical teams, and maintain a Software Bill of Materials (SBOM) documenting all software components and their licenses.

Software owners should create written license agreements when providing software to other companies, ensuring all parties understand and accept the open-source license terms. To maintain compliance, parties can implement monitoring mechanisms, such as requirements to publish modifications or notify the owner about software use.

Law No. 17,336 establishes that copyright ownership of computer programs belongs to their creators. However, when programs are developed under commission by a third party, the copyright automatically transfers to the commissioning party.

Fintech companies must establish comprehensive agreements with developers and partners that include robust intellectual property protection clauses to prevent unauthorized use or disclosure. These agreements should secure exclusive rights to exploit the developed technology and specify penalties for breaches.

Additionally, these agreements must explicitly outline the terms for licensing rights, product distribution, and each party’s responsibilities regarding intellectual property infringement.

Fintech companies need legal protection, monitoring, and rapid response to protect IP. They must register rights with INAPI and the Intellectual Rights Department under Laws 19,039 and 17,336.

Registration of trademarks, patents, and copyrights enables legal action against infringement. Companies should include IP protection clauses in contracts with employees, developers, and partners.

Companies should monitor for infringement through INAPI trademark reviews, online identity tracking, and internal audits. The initial response to unauthorized use should be a cease-and-desist letter.

If infringement persists, legal options include opposing similar trademark registrations, requesting cancellations, or filing court complaints for sanctions and compensation.

For copyright violations, companies can pursue civil action to stop unauthorized use or seek criminal charges. Courts may order content removal or seizure of illegal copies.

Chilean fintech companies using AI for credit risk assessments must follow legal frameworks ensuring transparency and fairness. Law 21,719 on Personal Data Protection (effective December 2026) will require explainable decisions for loan assessments, while a pending AI bill introduces oversight for high-risk applications.

The CMF and Ministry of Science provide guidelines emphasizing human supervision and ethical AI adoption. General Norm N°502 (NCG 502) requires transparency in automated processes and human oversight.

Fintechs must audit AI models for fairness, prevent discrimination, and explain credit decisions clearly. This includes implementing human-in-the-loop systems, conducting regular bias audits, and allowing individuals to challenge AI-generated decisions that affect their financial situation.

Law 17,336 protects original AI source code but not algorithms or methods, requiring fintech companies to seek additional protections. Law 19,039 allows patenting AI innovations showing novelty and industrial applicability.

Companies must follow Laws 19,628 and 21,719 on data protection, and implement security measures like encryption and access controls. Fintechs need strong contractual protections and explicit permissions for third-party data use.

Under Fintech Law, fintechs must meet CMF cybersecurity requirements through NCG 502 and 524, focusing on confidentiality and threat preparedness.

Fintechs must review licenses carefully to avoid legal risks when using third-party AI tools. Companies remain responsible for compliance with Chilean data protection laws even when outsourcing.

Though Chile lacks AI-specific regulations, fintechs using AI must follow existing rules on data protection, financial services, and consumer rights. The CMF oversees fintech operations for transparency and risk management, while SERNAC protects consumers from unfair AI decisions.

Fintech Law requires transparency and consumer protection for AI-driven financial services. Fintechs must follow CMF guidelines, register with their Registry, and comply with NCG 502 and 524 on governance and risk management.

Law 19,628 governs personal data handling, requiring user consent and granting data rights. Law 21,719 will align these protections with GDPR standards by December 2026. A pending AI bill aims to ensure transparent and unbiased financial systems.

Under Law N° 19,469, SERNAC requires AI applications to provide transparent, non-discriminatory services. Consumers can challenge AI decisions and request human intervention.

AI risk management requires compliance with Chilean data protection laws (Law 21,719 and Law 19,628) and the pending AI systems bill. High-risk AI fintech applications must undergo audits and provide transparent explanations for decisions. Companies should implement precise AI explainability models to minimize legal risks.

AI lending systems risk perpetuating bias through historical data. Fintech companies must conduct regular bias testing and maintain human oversight for fair decisions.

Cybersecurity requires robust protocols, including authentication, fraud monitoring, and protection against adversarial attacks. Fintechs must follow CMF guidelines and NCG 502 on algorithmic transparency.

Third-party AI tools pose legal risks through potential IP disputes and data breaches. Companies must conduct due diligence and establish clear data ownership and security agreements.

Fintechs should maintain an AI governance framework with dedicated compliance teams to monitor regulations, assess risks, and ensure legal compliance through regular assessments.

Fintech companies in Chile have significantly disrupted traditional financial services, particularly in digital payments, lending, and personal finance management.

A prime example is the emergence of neobanks and digital wallet platforms. These services provide more inclusive and accessible financial options for unbanked and underbanked populations. By leveraging mobile technology and innovative business models, these fintechs offer seamless, user-friendly banking experiences that effectively challenge traditional institutions.

Peer-to-peer (P2P) lending platforms represent another notable disruption. These platforms eliminate the need for traditional financial intermediaries like banks, allowing direct lending between individuals. This has democratized access to credit, mainly benefiting individuals and businesses with limited access to conventional credit lines. Blockchain and cryptocurrency solutions have also gained traction, providing alternatives to traditional currencies and payment systems—further transforming Chile’s financial sector.

Chile’s fintech sector is drawing significant investment, led by digital payments and mobile wallets. These companies, mainly in Series A and B rounds, are revolutionizing traditional banking with accessible payment solutions.

The lending sector is evolving through P2P platforms and digital credit scoring, attracting Series A and B funding for alternative financing solutions.

WealthTech companies are gaining traction by offering digital investment and financial planning tools, typically securing Series A funding as financial literacy grows.

InsurTech platforms are modernizing insurance through digital solutions, drawing early-stage investments for streamlined services.

Blockchain and crypto companies, though emerging, are attracting investment at Seed and Series A stages as regulatory frameworks mature.