The Bangko Sentral ng Pilipinas (BSP) has approved the accreditation of two new virtual currency exchanges, bringing the total number of encrypted exchanges regulated in the country to five.
In a statement issued by Lieutenant Governor Chuchi G. Fonacier, the BSP announced that it has granted operational approval to Virtual Currency Philippines, Inc. and ETranss to carry out the conversion of Philippine pesos (PHP) into virtual digital currencies.
The Philippines has attracted some attention for its unique approach to the rise of cryptocurrencies. Instead of taking action against crypto trade or sending mixed signals as is the case in much of the developing world, the BSP has consistently adopted a progressive policy, recognizing that cryptocurrencies offer enormous advantages to Filipinos, particularly in terms of access on cheap credit and allow cheaper and faster remittances from abroad.
CCN previously reported that the most popular encryption application in the Philippines, Coins.ph now has a user base of more than five million people, with more than one million users alone in its Android application. This application has achieved great popularity by offering a range of transaction and credit options that include mobile payments, invoice settlement and short-term unsecured loan facilities.
Importantly, it also provides rapid and affordable remittance services, which is extremely important for the approximately 10.2 million people of Filipino descent who work abroad and sent approximately $ 7.8 billion to their home in the first quarter of 2018 Other cryptographic platforms of the country the growing popularity of encrypted payments and this has not gone unnoticed by the government.
In early July CCN also reported that the Cagayan Economic Zone Authority (CEZA), an economic zone in the northern part of the Philippines, supported by the government, will embrace up to 25 cryptocurrency exchanges with friendship regulations and fiscal policies .
The unique enthusiasm for innovation based on cryptography at a time when many regulators continue to see it as a competitor, can be traced back to the economic effect it is having on the Philippine economy. Long seen as an ossified economy where people had no choice but to migrate in search of opportunities, the Philippines is now witnessing a boom in the financial industry fueled by crypto.
A recent CCN report revealed that encryption exchanges and new cryptographic companies in the country are consistently outperforming traditional financial institutions and services, with Coins.ph attracting $ 10 million in Naspers funds and becoming one of the top 10 most used domestic applications in the country, exceeding the growth rate of financial platforms and other fintech applications.
Undoubtedly, by feeling the opportunity to shake up the economy, the Philippine authorities have become the most crypto-friendly regulators in the world, quickly granting official recognition to digital assets and legitimizing the cryptographic sector.
There are also plans to provide operational licenses to cryptographic startups throughout Asia and beyond that seek to offer ICO and mining cryptocurrencies in the Cagayan Economic Zone.