The Philippines central bank, Bangko Sentral ng Pilipinas (BSP), has
approved applications filed by two new cryptocurrency exchanges, news
outlet Business World Reported July 6.
The Deputy Governor of the BSP Chuchi G. Fonacier reportedly said that
Virtual Currency Philippines, Inc and ETranss have been accredited as
platfroms, which allows then to convert philippines pesos into virtual
currencies. with this move the two exchnages joined already operating
exchanges Rebittance, Inc, Betur, Inc and BloomSolution.
The central bank has recognized digital currencies for their potential
to provide faster and cheaper transactions, but remains cautious of the
potential risks of crypto volatility, criminal involvement, and
cybersecurity.
BSP had previously considered whether the new exchanges should register
as e-money issuers because they offer wallet services for their clients.
Fonacier said that internal consultations advised against such a
requirement in the interest of providing a streamlined registration
process for new market players:
The Anti-Money Laundering Council will reportedly begin closely
observing digital currency transacation as part of their broader efforrt
to crack down on dirty money. Firms will be obliged to report covered
transactions as well as any transactions they deem suspicious.
According to Business World, over the past several years conversions
from the peso to digital currencies have grown significantly. In the
first quarter, amounts totalled around $36 million per month covering
transactions from two registered exchanges.
In April, the Philippine goverment announced it will allow 10 blockchain
and crypto companies to operate in the Cagayan Economic Zone. Firms are
expected to generate employement for local residents in exchange for tax
breaks. The Cagayan Economic Zone Authority will also require the
companies to invest at least $1 million over two years and pay up to
$100,000 in licence fees.
In Novermber last year, the Philippines Securities and Exchange Commision
said it was considering legalizing the use of digital currencies in the
country by classifying them as securities. Earlier that year, BSP
officially recognized Bitcoin as a legitimate payment method.