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Since its enactment in January 2023, the Fintech Law in Chile has revolutionized the country's digital financial sector. A regulation that seeks to regulate the activities of Fintech companies, promoting innovation and the development of more inclusive and secure financial services in the digital sector, such as payment platforms, cryptocurrencies and crowdfunding.
In simple terms, the Fintech Law provides a security framework that protects consumers. Now, platforms must be transparent about the costs, risks and conditions of their products, which generates greater confidence in users. In addition, special emphasis is placed on cybersecurity, a key issue given the growth of digital threats.
This law also puts a foot in the world of cryptocurrencies, although it does not establish a totally clear framework. The idea is to allow the development of these technologies within a regulated space, without slowing down their growth, but ensuring that risks such as money laundering or terrorist financing are avoided.
Regulatory framework
Fintechs must comply with transparency requirements, and the Financial Market Commission (CMF) supervises their compliance, granting them licenses to operate.
February 3 is the deadline for financial technology companies to apply for registration and authorization with the CMF, providing key details about their operation, financing and security.
Finance for all
One of the promises of the law is to improve financial inclusion, providing access to products such as credit and payments to people who do not have access to traditional banking. However, challenges such as the full implementation of the Open Finance System (OFS) and the adaptation of businesses and consumers to the new regulations will remain key to the law's success.
With more than 480 Fintechs active in the country, the future of the sector looks promising. However, the effectiveness of the law will depend on how regulatory challenges and the integration of all players in the financial ecosystem are managed.
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