Philippines Warns Against Transactions With Foreign Crypto Firms

The Philippine Government has begun to show interest in the cryptocurrency space/industry in the past few months. Earlier, the central bank of the Philippines (Bangko Central Pilipinas) released a statement warning all citizens to desist from transacting with foreign cryptocurrency firms. 

Philippine Central Bank Warns Against Foreign Crypto Firms

The Philippines’ most prominent financial institution made the announcement known via a memorandum circulated to all media houses and platforms in the country. According to financial institutions, citizens dealing with these unauthorized foreign companies can get easily exploited, scammed, or frauded. 

Bangko Central Pilipinas stated that the institution is set to protect crypto users, enforce a regulatory framework, and remodify some mechanisms to make the crypto space/industry a safe one. However, the intent of the financial institution will be limited if the citizens keep engaging the services of unregistered crypto solution providers. 

The Central bank of the Philippines is the crypto regulatory body and commission in the Philippines. The bank is inclined to create a safe and secure space for crypto enthusiasts and users. 

Excerpts from the announcement state, “The central bank of the Philippines warns citizens against engaging the services of foreign digital assets company solution providers. Users of such services are prone to price volatility of their digital assets; especially of the companies are foreign-based.”

According to the institution’s official website, the total number of authenticated crypto services provided is 19, which was last updated in June.

Philippine Central Bank To Regulate Crypto Space

The activities of the Philippines Central bank depict a regulatory motion and movement for the cryptocurrency space. According to the financial institution, digital assets and property are a volatile and risky area prone to huge financial losses during price crashes.

The financial institution alleged that the foreign crypto firms are unauthorized or unauthenticated to perform operations on the Philippine coast until they fulfill all protocols. The bank asserted that although it will regulate or minimize risk in the crypto space, it does not guarantee protection from financial losses. However, users and enthusiasts should read cautiously, indulge in their intelligence study, and get acquainted with risks affiliated with the cryptocurrency space.

The financial institutions asked for full operation from the public; if any unauthenticated crypto firms or digital service providers are in the Philippines, the public should make a report immediately. Although the body cannot eradicate the risks, it can be minimized.

The bank also revealed that it would ban licensing crypto companies/digital assets firms for three years, from the 1st of September. This statement is coming weeks after the financial institutions announced its plan to launch its native token.