The Central Bank of Philippines, “The Bangko Sentral ng Pilipinas (BSP)” announced on Tuesday about new regulations for cryptocurrency. It announced that the bank had succeeding in developing new guidelines to be implemented on crypto exchanges.
The central bank explained that guidelines were approved by Monetary Board to be applied on virtual asset service providers (VASP). It said that the guidelines will also cover other entities facilitating trade of crypto assets for business or other activities.
Governor of Central Bank, Benjamin E. Diokno stated that growth has been observed in the trade of crypto assets. He said that for the past three years the interest of investors in crypto has gained acceleration. He believed that considering the changing trend it is time to widen the scope of regulations along with trend. He said the regulations must meet evolving financial-trading trends and should be able to access risks involved with such trade.
The new guideline will not completely oust the old guideline of 2017 but will extend their scope. The central bank stated that the new guidelines are in consonance with international best practices and risk management standards. BSP informed that it will ensure compliance of international anti-money laundering, combating the financing-terrorism, Financial Action Task-Force and proliferation financing regulations.
BSP further explained the guideline approved by Monetary Board will also expand the licensing regime of BSP. The licensing regime will also be covering any entity facilitating cryptocurrencies trade along with entities dealing in fiat finances.
With the increased prices of Bitcoin and alternate cryptocurrencies investors from around the globe have shown interest in them. Therefore, more and more countries are forming guideline to regulate the trade to secure the interest of state and investors. Recently Bahrain drafted Shariah-Complaint (i.e. in compliance with Islamic principles) regulations to monitor crypto within the country.
The guidelines will regulate the trading activities of cryptocurrencies, such like transferring, exchanging and administration of crypto assets in Philippines. It will also be regulating over applications facilitating control and trading option for crypto assets.
Exchanges or companies willing to operate functions of crypto exchange in Philippines will now have to comply with these guidelines. Licenses for exchange or running any business related the crypto will be only provided to entities compliant of these guidelines. These guidelines are also expected to ensure standards of AML, FATF, CFT and PF in Philippines.