A guide to buying cryptocurrencies in Chile
Buy crypto on Coinmama
Coinmama is a very well respected exchange and supports customers from more than 190 countries and they also have the option to purchase bitcoin and other cryptocurrencies like Ethereum with credit cards. The exchange is very easy to use and in general a really good option for users that are new to Bitcoin and the whole crypto space.
The fees on credit cards are very transparent on Coinmama, but they also have much higher limits than others. So if you are looking to spend more than 2500 USD then Coinmama would be ideal.
Another great exchange to buy Bitcoin on if you are located in Venezuela is LocalBitcoins. They provide a great service and has a ton of different payment options. Which makes it easy to get started with purchasing your first Bitcoins.
The current situation in Chile
Chile, one of the biggest South American countries, was often criticized for being old fashioned when it comes to the progress in the fintech sector. Recently, the country saw a major turn when Felipe Larraín, Chile’s finance minister, introduced a bill to regulate cryptocurrencies.
With the new regulations, the digital assets industry can operate smoothly, expand and flourish at a faster pace. With a legal framework, the interests and protection of citizens investing in cryptocurrencies can be ensured. With these regulations, various innovative projects and startups can be supported. These regulations can ensure that companies offering cryptocurrencies and digital assets, explore more use cases and renovate the current way of implementing projects.
The finance minister of Chile revealed that he has forwarded the bill to Chilean Congress to cater to the needs of all business models involving cryptocurrencies and other digital assets. Felipe clarified that instead of a blanket rule, there would be a general rule which would be applied to everyone, which proposes requirements proportional to the businesses. Felipe went on to explain that as business models are capable of taking different forms and offering unique services, the regulations must deal with those requirements accordingly.
Before the regulation
Bitcoin, altcoins or other cryptocurrencies was not recognized as legal tenders in Chile. There were no regulations for the cryptocurrencies and digital asset exchanges established in the country. Felipe Larraín stated that the primary motive to regulate cryptocurrencies is to minimize the risk associated with them.
Although cryptocurrencies had no economic value or significance in the past, they were constantly derogated by the Central Bank of Chile (BCC). BCC severely opposed the decentralization of digital assets by stating that bitcoin is not capable of replacing fiat currency.
Banks vs cryptocurrency
BCC stated that the cryptocurrency market in Chile is negligible, refusing to acknowledge its presence. Reports state that the first company to offer purchase and selling of bitcoin in Chile was Yaykuy, which was established in 2014. The cryptocurrency exchanges in Chile account for over $ 7 million in revenue per month. Banks were hostile towards cryptocurrencies and built a narrative that cryptocurrency regulations are minute as it accounts for just a fraction of the population of Chile. Cryptocurrencies have the potential to improve current financial systems and even replace it with blockchain projects, which are risky substitutes for the bank. This reason explains why banks are opposing the innovation of digital currencies.
The rivalry between banks in Chile and cryptocurrency heated up when the banks closed the accounts of digital asset exchanges, BUDA, Orionx and CryptoMarket, without any explanation. When they took action place, local cryptocurrency enthusiasts responded with an online campaign “#ChileQuiereCryptos”, which means “Chile wants crypto”. Later, the Chilean court for anti-monopoly, known as the Tribunal de Defensa de la Libre Competencia (TDLC), ordered the banks to revert their actions.
Innovation with cryptocurrency
Most countries, especially in the South America region, do not realize the potential of bitcoin, dash and other cryptocurrencies. Hence, the attention and efforts towards regulating these digital assets are anticipated. However, various retailers and merchants are now accepting cryptocurrencies as an official payment method. Countries such as Mexico, Argentina, Brazil, Venezuela and Chile collect capital gains tax from people who are profiting from the trade of these digital assets.
Cryptocurrencies and its underlying technology, blockchain, are well-known for its innovative progress. The trend to regulate these digital assets and exchanges is finally spreading all over the globe. After France stood up for Europe, Chile is continuing the successful journey of bitcoin and other cryptocurrencies. Though various countries from all over the globe have joined in regulating cryptos, states accepting the significance of devising a framework for the cryptocurrency is not dense. These countries have ignited the fire, there is plenty of uncovered territory for cryptocurrencies. With the Chilean government regulating cryptocurrency agencies, the future of cryptocurrency in the country is bright.
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