Buda.com Warns Chile's Fintech Law Delay Creates Competitive Disadvantage

The legal manager of Latin American cryptocurrency exchange Buda.com has criticised the prolonged implementation of Chile’s Fintech Law, calling it a competitive disadvantage for the company internationally.

Speaking at the Digital Asset Forum, Bernardita Bottai noted that the regulatory process has taken much longer than anticipated. She pointed specifically to the delay in the open finance system (Sistema de Finanzas Abiertas), which the Chilean Financial Market Commission (CMF) pushed back by another year. The licensing process for fintech firms has also been slower than expected, according to Bottai.

“Nobody imagined this implementation process would be so long. It has put us at a competitive disadvantage internationally,” Bottai said. She acknowledged, however, that the regulator is clearly intent on resolving the situation.

Bottai explained that Buda.com is currently focusing on expanding cross-border payments, a business line that requires integration with providers in other countries. The delay prevents the exchange from obtaining the necessary regulatory licences to facilitate due diligence and speed up international transactions. “If Buda users wanted to send money to a country where we don’t operate, for example Bolivia, we need a provider to help convert those cryptocurrencies or stablecoins into local currency,” she said. “Without a licence, no matter how much I explain it, there is distrust. This makes it difficult to grow that product.”

Chile’s Fintech Law was approved in 2023 with a gradual implementation schedule running until July 2026. It creates a regulatory framework for technology-based financial services, including open finance, and classifies digital assets as financial instruments. Crypto exchanges like Buda, which handle intermediation and custody of such assets, must register with and be authorised by the CMF.

Areas for improvement

While Bottai described the law as “a very good starting point,” she identified several areas that require fine-tuning. She noted that the regulation classifies digital assets by volume rather than risk, placing Bitcoin and Dogecoin on the same level despite their differences. She also pointed out that tokenisation of assets is barely addressed. Another concern is the tight deadline for submitting audited financial results, which she said can be challenging for new businesses entering the regulatory system.

Looking ahead, Bottai expressed hope for better coordination among the agencies involved in enforcement. “When implementation arrives, I hope the bodies that will regulate—not just the CMF, but the Data Protection Agency, the Internal Revenue Service, and the Financial Analysis Unit—coordinate and speak to each other,” she said.