Chile regulator unveils draft fintech bill

Chile’s financial services watchdog CMF presented to the finance ministry a draft fintech bill for the securities market.

The initiative would bring crowdfunding platforms – along with other fintechs that operate in the securities market sphere – into the regulatory fold.

The capital markets fintech regulation marks a milestone in a process that started in 2018 and involved consulting the financial services industry and working with IDB specialists. 

In a statement, CMF said a proportional, flexible, modular and technology-neutral regulation would help spur innovation and financial inclusion, along with supporting development of new sources of financing and boosting competition. 

The absence of a regulatory framework has hampered development of the sector and created space for potential risks for users, CMF said.

The proposal also gives the CMF powers to demand that regulated entities – provided client consent is given – share their data, via API, with other financial services providers. This follows an announcement that the government was working toward developing an open banking regulatory framework.

CMF added that, given the breadth of the fintech arena, complementary legal proposals would follow.