Chilean Crypto “Normalization” an Example of Institutional Buy-In


Cryptocurrency media coverage within the last 24 hours is looking at how some end of year reporting indicates countries are opening up to the coin world in part by instituting new regulations that treat crypto offerings a little more “normally,” equating them in major ways with traditional equities and assets.

Notably, the Chilean government has just ruled that taxpayers have to report cryptocurrency profits in a separate category to the Chilean version of the US Internal Revenue Service.

In Chile, digital currencies are not taxed under the VAT sales tax that governs the sale of so many consumer products – but now, they will be calculated in annual income tax filings via income tax form 22.

According to new reports, the government will add a “special section” for listing crypto gains.

“DiarioBitcoin reports that, while it is not explicitly stated in the form, an SII statement released at the end of 2018 noted that taxpayers should report their income from the sale of foreign fiat currencies and cryptocurrencies in the aforementioned section,” writes Adrian Zmudzinski at Cointelegraph today.

The report also covers the Chilean government’s backing of cryptocurrency exchanges after major banks shuttered their accounts. Forcing banks to keep his accounts open is a tangible protection for the digital currencies that are being evaluated and assessed right now by world governments.

“As Cointelegraph reported at the beginning of the current month, the Chilean anti-monopoly court has again granted protection to local cryptocurrency exchanges by forcing banks to keep their accounts open,” Zmudzinski writes. “In April 2018, news broke that Chilean cryptocurrency exchanges BUDA, Orionx and CryptoMarket (CryptoMKT) had applied to an appeals court to confront the banks that shut down their platforms’ accounts.”

Chile is not the only national government that is making decisive moves on BTC and other coins; other countries are setting up relevant rules, and even creating their own unique central bank cryptocurrencies.

You can point to examples like Venezuela where detractors are making claims of illicit activity, or you can look at how US regulators are slowly creating a framework for coin assets. It’s part of the global trend toward acknowledging that in many ways, crypto coins are here to stay. Wait for this sort of broader acceptance to make its way into markets.