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11/08/2025
Cryptocurrency and Alternative Finance Landscape
Chile has emerged as one of Latin America's most crypto-friendly countries, with a progressive regulatory approach and growing fintech ecosystem. The government recognizes cryptocurrency as a legitimate asset class while working to establish clear regulations. For expats, understanding the cryptocurrency landscape and alternative financial services can provide additional options for wealth management, international transfers, and financial inclusion.
Legal and Regulatory Environment
- Legal status: Cryptocurrencies are legal and recognized as assets
- Regulatory framework: Central Bank and CMF provide oversight
- Tax treatment: Crypto gains subject to capital gains tax
- Banking relationships: Mixed acceptance by traditional banks
- Innovation support: Government supports fintech development
The tax authority requires reporting of every line (buying or selling). If you start to do intraday trading on Chilean platform, Reporting can quickly become cumbersome.
When selling cryptos on a Chilean exchange, the tax authority considers the full amount as profit, unless you can match the sale with a buying transaction for the same amount of cryptocurrency (FIFO method, see below). Therefore, transferring cryptos from abroad to a Chilean exchange to then convert them in Chilean pesos may not be convenient for you.
Legal Status and Regulation
Current Legal Framework
Cryptocurrency Classification
Asset classification: Cryptocurrencies recognized as intangible assets, not currency Property rights: Full ownership rights protected under Chilean law Commercial use: Legal for business transactions and commerce Investment vehicle: Permitted for investment and trading purposes
Regulatory Authorities
Central Bank of Chile (BCCh):
- Payment systems: Oversight of crypto payment systems
- Foreign exchange: Regulation of crypto-fiat exchanges
- Financial stability: Monitoring systemic risks
- International coordination: Cooperation with global regulators
Financial Market Commission (CMF):
- Securities regulation: Oversight of crypto investment products
- Consumer protection: Investor protection measures
- Market surveillance: Monitoring for fraud and manipulation
- Licensing: Authorization for crypto service providers
Tax Implications
Capital Gains Tax
Tax obligations:
- Individuals: Capital gains subject to Second Category Tax
- Businesses: Crypto trading income subject to corporate tax
- Rate structure: Progressive tax rates from 0-40%
- Reporting requirements: Annual tax declaration mandatory
Calculation methods:
- FIFO method: First-in, first-out for cost basis calculation
- Specific identification: Track individual purchase prices
- Documentation: Detailed records required for tax compliance
- Professional advice: Tax professionals recommended for complex situations
Mining and Staking
Mining income: Treated as business income subject to corporate tax Staking rewards: Generally taxed as investment income Equipment depreciation: Mining hardware depreciation allowed
Major Cryptocurrency Exchanges
Local Chilean Exchanges
Buda
Buda.com is the largest cryptocurrency exchange in Chile.
Supported currencies: BTC, ETH, LTC, BCH, and Chilean Peso
Features:
- Chilean peso trading: Direct CLP trading pairs
- Bank transfers: Integration with Chilean banking system
- API access: Trading API for advanced users
- Mobile app: Full-featured mobile trading platform
Fees:
- Trading fees: 0.8% maker, 1.2% taker
- Deposit fees: Free for bank transfers
- Withdrawal fees: Vary by cryptocurrency and amount
- Chilean peso withdrawals: $2,900 CLP flat fee
Despite being the largest cryptocurrency exchange, the liquidity on the platform is way lower than international platforms. While it can be a good option to buy and sell cryptocurrencies for pesos, this not a platform to do trading, especially when the market volatility is high.
CryptoMarket
CryptoMarket has a regional presence in Argentina, Brazil, Chile, Colombia, and Peru.
Currency support: Major cryptocurrencies with local fiat pairs
Services:
- Spot trading: Buy and sell cryptocurrencies
- OTC trading: Large volume trades with dedicated support
- API integration: Professional trading tools
- Educational resources: Learning materials for beginners
Advantages:
- Regional expertise: Deep understanding of Latin American markets
- Local compliance: Adherence to Chilean regulations
- Customer support: Spanish-language support team
- Banking integration: Established relationships with Chilean banks
International Exchanges Accessible from Chile
Binance
Binance is the global leader.
Available services:
- Spot trading: Hundreds of cryptocurrency pairs
- Futures trading: Leveraged cryptocurrency derivatives
- Savings products: Earn interest on cryptocurrency holdings
- NFT marketplace: Non-fungible token trading platform
Chile-specific considerations:
- Peer-to-peer trading: P2P platform for Chilean peso transactions
- Bank transfer support: Some Chilean banks supported
- VPN considerations: Direct access available from Chile
- Regulatory status: Operating without local license
Kraken
- Security focus: Strong security reputation and features
- Professional trading: Advanced trading tools and analytics
- Regulatory compliance: Licensed in multiple jurisdictions
- Chilean accessibility: Available with limited Chilean peso support
Alternative Financial Services
Digital Payment Platforms
Tenpo
Service model: Digital wallet and financial super-app
Banking license: Licensed financial institution in Chile
Features:
- Digital account: No traditional bank account required
- Prepaid card: Physical and virtual Mastercard
- Bill payments: Utilities and service payments
- Money transfers: P2P transfers between users
- Savings goals: Digital savings features
Cryptocurrency integration:
- Bitcoin purchases: Buy Bitcoin directly through the app
- Crypto wallet: Secure cryptocurrency storage
- Fiat-crypto exchange: Convert between CLP and Bitcoin
- Educational content: Cryptocurrency learning materials
Khipu
Focus: Electronic payment processing for businesses
Services:
- Payment gateway: Online payment acceptance
- Bank integration: Direct integration with Chilean banks
- API solutions: Developer-friendly payment integration
- Multi-channel: Web, mobile, and point-of-sale payments
Fintech Lending Platforms
Kredito
Service: Online lending platform
Target market: Individuals and small businesses
Technology: AI-powered credit assessment
Benefits:
- Fast approval: Minutes instead of days
- Digital process: Entirely online application
- Alternative credit scoring: Uses non-traditional data
- Competitive rates: Often better than traditional banks
Rebold (formerly Destacame)
Credit scoring: Alternative credit scoring using non-traditional data
Services:
- Credit reports: Comprehensive credit information
- Score improvement: Tools to improve credit rating
- Financial education: Credit and financial literacy resources
- Lender integration: Connects borrowers with lenders
International Transfer Services
Wise (formerly TransferWise)
Service model: International money transfer platform
Benefits for Chile:
- Competitive rates: Better exchange rates than traditional banks
- Transparent fees: No hidden costs or markups
- Speed: Fast international transfers
- Multi-currency account: Hold multiple currencies in one account
Chile-specific features:
- Chilean peso support: Send and receive CLP
- Bank integration: Direct integration with Chilean banks
- Large transfer limits: Support for significant transfer amounts
- Business accounts: Solutions for companies and freelancers
Remitly
Focus: Remittances to Chile from abroad
Services:
- Fast transfers: Express and economy options
- Multiple delivery: Bank deposit, cash pickup, home delivery
- Mobile app: User-friendly mobile application
- Competitive rates: Good rates for remittance amounts
Cryptocurrency Use Cases for Expats
International Transfers
Cross-Border Payments
Traditional banking challenges:
- High fees: Wire transfer fees of $35-75 per transaction
- Poor exchange rates: 3-5% markup on exchange rates
- Slow processing: 3-5 business days for transfers
- Limited hours: Banking hour restrictions
Cryptocurrency advantages:
- Lower costs: Potentially 1-3% total cost
- 24/7 availability: Transfer anytime, including weekends
- Speed: Minutes to hours instead of days
- Global reach: Send to any country with internet access
Practical Implementation
Transfer process:
- Purchase crypto: Buy cryptocurrency with Chilean pesos
- Send internationally: Transfer crypto to recipient's wallet
- Convert to local currency: Recipient exchanges for local fiat
- Total time: Usually 30 minutes to 2 hours
Considerations:
- Volatility risk: Cryptocurrency price fluctuations during transfer
- Recipient capability: Recipient must understand cryptocurrency
- Regulatory compliance: Both countries' regulations must be followed
- Tax implications: Capital gains or losses may apply
Future Outlook
Central Bank Digital Currency (CBDC)
Chilean CBDC Development
Central Bank research: BCCh actively researching digital peso implementation Pilot programs: Testing phases for digital currency technology International cooperation: Learning from other countries' CBDC experiences Timeline: No official launch date announced, likely several years away
Potential impact:
- Financial inclusion: Greater access to digital financial services
- Payment efficiency: Faster, cheaper domestic payments
- Monetary policy: Enhanced central bank policy transmission
- Cryptocurrency coexistence: Likely to complement rather than replace cryptocurrencies
Frequently Asked Questions about Cryptocurrency and Alternative Finance
Legal and Regulatory
Yes, buying, selling, and holding cryptocurrencies is completely legal in Chile. The government recognizes cryptocurrencies as legitimate assets.
Yes, capital gains from cryptocurrency trading are subject to Chilean capital gains tax. Rates vary from 0-40% depending on your total income and holding period.
It is unlikely if you comply with KYC guidelines and reply to their information requirements. Some banks have restrictive policies toward cryptocurrency activities and may close accounts. It's best to check with your specific bank about their cryptocurrency policies.
Cryptocurrency mining is legal but must be registered as a business activity and is subject to corporate taxation. Miners also face high electricity costs in Chile.
Practical Usage
Local exchanges like Buda.com offer direct Chilean peso to Bitcoin trading with bank transfers. International exchanges may offer more variety but with higher complexity.
While legal, cryptocurrency payments are not widely accepted by merchants. Some businesses accept Bitcoin, but cash and cards remain the dominant payment methods.
You can buy cryptocurrency locally, transfer it to the recipient, who then converts to their local currency. This can be faster and cheaper than traditional wire transfers.
For large amounts, hardware wallets stored securely are recommended. For smaller amounts and active trading, reputable exchanges with good security practices may be acceptable.
Investment and Security
Some exchanges offer insurance coverage, but policies vary. Check with specific exchanges about their insurance and security measures.
Traditional Chilean banks typically don't offer cryptocurrency-backed loans, but some international platforms and emerging fintech companies may provide these services.
Do you want to go more in detail?
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