CHILE Law and Practice Contributed by: Alberto Alcalde, María Catalina Zegers García-Huidobro and Pía Robledo, Puga Ortiz
9.2 Contractual Terms to Ensure Performance and Accuracy Financial services firms must ensure that technology providers meet performance, accuracy and regulatory standards through contractual arrangements. Contracts typically include performance guarantees, liability and indemnification clauses, service level agreements (SLAs), audit and reporting obligations, and termination rights for non-compliance. Technology providers must comply with applicable regulatory requirements, including cybersecurity, data protection and data accuracy standards, as defined by the CMF. Firms remain responsible for ensuring appropriate governance and risk management frame - works. 10. Blockchain 10.1 Use of Blockchain in the Financial Services Industry Traditional players are working to collaborate with fin - tech and take advantage of the new ecosystem too. The OFS established by law promotes interoperability and secure data exchange between financial institu - tions. Blockchain could play a role in ensuring secure and transparent data sharing. While the system does not consider blockchain implementation, it provides a regulatory framework that supports its use in areas like payment systems, custody and tokenisation. Traditional players in the financial services industry are likely to explore block - chain to enhance security, efficiency and transpar - ency, aligning with the law’s principles of innovation and inclusion. 10.2 Local Regulators’ Approach to Blockchain The law provides a clear framework for the use of blockchain and other innovative technologies in the financial services industry in Chile. Local regulators, particularly the CMF and the BCCh, have introduced provisions and interpretations that support blockchain adoption while ensuring compliance with security, reli - ability and transparency standards.
The law explicitly acknowledges distributed ledger technologies (eg, blockchain) as valid systems for recording digital representations of value, including financial instruments and payment systems. Blockchain-based systems are permitted for repre - senting money (national or foreign currency) recorded on the blockchain and can be used to document obli - gations payable in various currencies. The BCCh is tasked with setting minimum standards for blockchain-based systems, including the follow - ing. • security – ensuring the reliability and protection of transactions; • acceptability – promoting mass adoption and usability; and • reliability – preventing fraud and ensuring system integrity. The OFS established by law promotes interoperability and secure data exchange between financial institu - tions. Blockchain could play a role in ensuring secure and transparent data sharing. The law allows for the tokenisation of financial instru - ments and assets, provided they meet regulatory standards for security and transparency. The CMF has broad powers to monitor blockchain- based systems used by financial institutions. It can also issue regulations to ensure compliance with cybersecurity, data protection and risk management standards. The CMF will define the technical and operational standards for the OFS, which may include blockchain-based solutions for the secure exchange of data. The law mandates a phased implementation of block - chain-related systems, with the CMF setting timelines and standards for adoption. 10.3 Classification of Blockchain Assets The regulatory classification of blockchain assets under Chilean law depends on their legal nature and the activity in which they are used.
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