Bangko Sentral ng Pilipinas (BSP) has recently approved two new applications by cryptocurrency exchanges. ETranss and Virtual Currency Philippines Inc. are the two new cryptocurrencies accredited by the central bank of the Philippines.
The Deputy Governor of the Philippines’ Central Bank, Chuchi G. Fonacier, said that the two new crypto exchanges were approved and accredited as new cryptocurrency platforms in the country. With the approved accreditation given to the two exchanges, it allows them to convert a Philippine peso into the different cryptocurrencies. With the recent approval given by the central bank, the two new exchanges will join BloomSolutions, Betur Inc., and Rebittance Inc. as the crypto exchanges of the country.
With this move done by the central bank of the Philippines, many other exchanges will show its interest in building their new platform in the country. The BSP has documented the cryptocurrencies for their ability to provide faster and cheaper transactions because there is no intermediary needed. Furthermore, the central bank is still cautious about the potential risks of the cybersecurity, criminal involvement, and crypto volatility.
The Bangko Sentral ng Pilipinas also considered whether these two new exchanges should register as e-money issuers since they are offering wallet services for their customers. As the new market exchange platforms, Fonacier said that the two new exchanges need to undergo the registration process. He also added that they are refining the rules. He then cited some examples of business models which make use of e-wallet services. He also said that if the business model is offering a wallet service, there is a need for additional requirements.
To crack down on the dirty money in the Philippines, the Anti-Money Laundering Council started its observation with all the digital currency transactions. This move is part of the country’s wider effort towards the elimination of the country’s dirty money. It was also stated that all the firms are required to report all the covered transactions and the transactions that are considered apprehensive.
Over a couple of years, the transactions with regards to peso to cryptocurrencies conversion have significantly developed. During the first quarter of 2018, the amounts totaled almost 40 million every month which are from the two registered crypto exchanges in the country. The Philippine Government also announced that it would allow ten crypto companies to operate in the country’s Economic Zone. More and more firms are then expected to be accredited and operate as one of the country’s new crypto exchanges.
