Chile’s Minister of Finance Felipe Larraín has revealed during a trip to the US that a new bill regulating cryptocurrencies and fintech has been submitted to his country’s National Congress.

“Taking into account the different forms taken by the business models of these platforms and also the fact that different platforms can provide different services, the regulation will apply requirements proportionally, regulating according to the type of service provided and the risks that this implies for the users and for the financial market,” he was quoted as saying by local news station Ahora Noticias (Apr 15).

The most-watched news program in Chile also noted that as technology advances constantly and with great speed, one of the key aspects of the bill is flexibility to ensure the law is not made obsolete in a short span of time.

Chile is home to numerous crypto exchanges, but much of its crypto activity has yet to be regulated.

“Regulation of these platforms would mitigate some of the risks, such as money laundering and terrorist financing, and increase the legal certainty with which they operate. We want to adequately protect against the risks associated with this kind of activity,” Larraín added.

In February, Chile’s central bank made it clear that it did not believe cryptocurrencies could substitute traditional fiat. For that to perhaps become reality, it believes relevant legislative framework and regulation have to first be adopted. Meanwhile, volatility, selective acceptance, and slow processing of payments pose as the main hurdles to the mass adoption of crypto.

Nonetheless, just the month before in January, Chile’s Internal Revenue Service – Servicio de Impuestos Internos (SII) – included a section on cryptos in its income tax returns form for citizens for the first time starting this year, reported The Crypto Sight.