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The exchange has demonstrated “resilience” by surviving in a hostile financial environment.
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Cryptocurrencies in Chile are used for remittances, electronic commerce and technological services.
Chile’s Fintech Law, which has been in force for almost two years, has been a significant advance regarding the regulation of Bitcoin (BTC) and cryptocurrencies in that country. However, that standard needs to be adjusted so that it covers all the challenges that involve the emerging market.
This is what María Fernanda Juppet, executive director of the Chilean Cryptocurrency exchange CryptoMKT, considers, who in an interview with CriptoNoticias stated that This rule “is a step forward” for the sectorbut “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 executive believes that “a constant dialogue between regulators, companies and experts is key to developing a regulatory framework that balances security and innovation.”
Juppet’s vision regarding the adjustments that must be made to the Fintech Law coincide with that of Sebastián Ovalle, compliance officer of the company Fintual, who considers that this regulation has negative aspects, such as high demands that it establishes for companies to remain operational.
Even so, the businesswoman Juppet maintains that this regulation, which came into force in February 2023, It is a path towards a “more collaborative” financial ecosystem. He thinks that this legislation, with everything 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 said.
Juppet affirms that the Fintech Law has aspects to improve. Source: CryptoMKT.
Thus, he agreed with Samuel Cañas, president of the FinteChile Association, who affirms that something positive about this regulation is that it allows the industry have a regulation that gives “certainty” to both clients and entrepreneurs.
Operating with “resilience”
Now, this scenario, where there is collaboration between both ecosystems, is still developing in Chile. In that country, the banks They have an unwavering position not to work with companies of cryptocurrencies.
In 2018, CryptoMKT, which is one of the main bitcoin and cryptocurrency exchanges in Latin America, with a presence in Argentina, Brazil, Colombia, Peru, as well as Chile, along with other platforms in the sector, such as Buda.com and OrionX; They sued several banking firms of Chile for closing their accounts, as reported by CriptoNoticias.
However, in December 2023, the Court for the Defense of Free Competition (TDLC) ruled against 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 said.
However, Juppet recognizes that operating in an environment where banks have decided to close their doors to banking companies bitcoin and cryptocurrencies “has been a considerable challenge.” Remember that, in your company, this situation of closures and restrictions affected its operations significantly.
“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, executive director of the CryptoMKT exchange.
Intensifying the dialogue
The directive revealed that the cryptocurrency exchange company has intensified dialogue with regulators and sector players to promote regulation “that encourages fair competition and market development.”
He claims that this experience has taught them to adapt quickly and innovate in solutions. “Which allows us to continue growing and adding value to the cryptocurrency ecosystem,” he said.
For Juppet, Chile, although it has shown important advances in regulation, does not compare with Brazil or Mexico, which “have adopted more proactive approaches, including the integration of digital assets into their regulatory frameworks.”
The court ruled against the exchanges and went in favor of the banks. Source: TDLC.
The executive says that a good practice to guide that country towards adequate 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, could be key to encouraging innovation in Chile, he assured.
The board comments that in Chile the adoption of cryptocurrencies as a means of payment has grown steadily, “driven by the need for more inclusive and efficient financial solutions.” He also explains that in that country there has been a notable increase in its use for remittances, electronic commerce and technological services.
“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 said.
Juppet’s vision is configured in a scenario in which the Fintech Law, which in February will celebrate two years of its entry into force, be updated as the bitcoin and cryptocurrency ecosystem advances.
A coherent perspective considering that the market is no longer the same compared to 2023. There are new areas to address If the real goal is to create a space for collaboration and integration between the Bitcoin ecosystem and the legacy financial system.
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