Chilean regulator cancels license of crypto platform linked to Venezuelan gang, orders refund of customer funds

CoinFeed June 30 news, according to Livecoins, Chile's Financial Market Commission (CMF) announced the cancellation of the registration of cryptocurrency platform Plusspay due to an investigation revealing its links to the Venezuelan criminal organization 'Tren de Aragua' and its use in providing financial support to the group. In addition to Plusspay, several institutions including Pixeltec and Iuinvest that failed to submit complete information as required by the Fintech Law (Lei Fintec) on time were also disqualified from providing services in the Chilean market. These institutions are prohibited from acquiring new customers and may only carry out operations related to liquidation and returning frozen funds to existing users. The regulator emphasized that payment and crypto service providers must enhance transparency to prevent money laundering and illicit financial flows.