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[Blockchain Today Reporter Seung-won Jeong] As the Philippine Central Bank (Bangko Sentral ng Pilipinas) expands its regulatory scope, cryptocurrency financial service providers have also opened a way to receive recognition from Philippine government agencies.
Recently, while clear regulations related to cryptocurrency are being established in Southeast Asia, the Central Bank of the Philippines (BSP) also revised the system and established a licensing system for digital asset companies.
According to the Philippine Daily Inquirer, all crypto financial services companies in the Philippines are required to legally provide services after obtaining a license from BSP. The revised rules also apply to cryptocurrency derivatives platforms.
All Philippine cryptocurrency companies must also comply with foreign regulations, including legislation on anti-money laundering and suspension of support for terrorist activities. Accordingly, when remittances exceeding a certain range, information of both the sender and recipient must be submitted.
BSP President Benjamin Diokno said, “With the rapid development of the cryptocurrency sector in the last three years, it is necessary to expand regulations.” In 2017, BSP published regulations on cryptocurrency trading.
Governor Diocno said of the regulation, “The creation of a healthy ecosystem of cryptocurrency financial services is aimed at encouraging financial reform and balancing BSP’s supervisory activities, while preemptively blocking the potential for abuse.”
In 2020, BSP also considered central bank digital currency (CBDC). However, due to the circumstances of the Philippines, digital currency issuance was still unreasonable, so instead, we decided to actively supervise activities related to digital currency.
Southeast Asia is evaluated as suitable for becoming a new cryptocurrency hub, showing a tendency to show positive views on new technologies. Singapore and Thailand have already established an electronic payment ecosystem. It is reported that Asia accounts for almost 50% of the world’s cryptocurrency transactions.