The Central Bank of the Philippines has decided to regulate crypto-related activities in its jurisdiction.
This effort aims to support the growth of innovative fintech activities while mitigating risks for its citizens.
All crypto related transactions will be treated as a money transfer service.
The Philippines has joined the list of countries with a stable regulatory framework for activities related to One Bitcoin a Day and other cryptocurrencies.
This development is not a surprise. More and more financial authorities around the world have started to make deliberate efforts to clarify their position on cryptocurrencies .
The Philippines take a stand
According to a report by the Inquirer, cryptocurrency-related activities will be handled under the responsibility of the Central Bank of the Philippines. These changes aim to verify the compliance of financial service providers with anti-money laundering legislation (AML). Digital assets such as cryptocurrencies will now be included.
The Bangko Sentral ng Pilipinas has now affirmed the approval of this framework. Platforms under the jurisdiction of the country, responsible for providing some form of crypto service, are expected to comply.
The Philippine Monetary Board has made it clear which areas will be subject to these new rules. Crypto asset trading and transfer as well as custodial service providers are also included in this category. The sponsorship of terrorism and the hiding of money are the two main crimes that the Philippine government seeks to curb.
In a statement, BSP Governor Benjamin Diokno said
“We have seen accelerated growth in the use [of] exchanges over the past three years, and it is high time that we broaden the scope of existing regulations, given the evolving nature of this financial innovation, and that we define corresponding expectations in terms of risk management ”.
The authorities in the Philippines have remained virtually silent on this subject since the last modification in 2017.
These adjustments made by its umbrella bank have been extended to include other aspects of cryptocurrency-related operations. Previous adjustments only covered swapping digital assets to fiat and vice versa.
According to the central bank, the new guidelines aim to advance the adoption of virtual assets in the region. Regulators maintain that they do not intend to stifle innovation but are aware of the risks inherent in virtual assets.