The Republic of the Philippines has potential when it comes to cryptocurrencies. It is worth noting that, Philippines’ central bank, BSP, implemented a broader licensing regime for crypto firms in the country. As a result, all crypto financial service firms in the country must now be licensed by the BSP.
Interestingly, exchanges dealing in crypto-to-crypto trading pairs, as well as custody platforms, must obtain approval from the central bank. People should take into account that the expanded regulatory regime also covers cryptocurrency derivatives platforms.
Importantly, all crypto firms that operate in the Philippines will also have to comply with global financial best practices regarding money laundering as well as related to terrorism. Consequently, cryptocurrency transfers above a certain threshold will require information for both the originator and beneficiary parties.
According to the central bank’s governor Benjamin Diokno, the expanded regulatory regime is necessary to keep up with the pace of development in the crypto space over the last several years. As a reminder, several years ago, the central bank issued rules for exchanges involved in fiat-crypto trading pairs.
It is worth noting that, the new rules will eliminate any regulatory loopholes in the crypto financial services ecosystem. Hopefully, the country’s central bank is ready to maintain balance when it comes to promoting financial innovation and not to forget about its oversight responsibilities.
Crypto firms and Asia
Interestingly, Asia especially its southeastern part continues to be a global hub for open finance with a positive disposition to emerging technologies. For example, markets like Singapore and Thailand already boost a sophisticated electronic payment system.
The country’s central bank is working hard to deal with various challenges. Thanks to the measures mentioned above, it will be easier to identify illegal activities. Unfortunately, there is no lack of crypto-related crimes in different parts of the world. Importantly, without regulations, it will be harder to identify such cases.
The Philippines should work with neighboring countries to combat international criminal groups. People should take into consideration that, sometimes it is quite hard to spot irregularities. However, regulations implemented by the country’s central bank will make it easier to protect crypto assets. Governments should join forces to make cryptocurrencies part of everyday life. Moreover, it is important to maintain the balance, as a huge number of regulations have the potential to create challenges for crypto firms. Despite all challenges, cryptocurrencies gained popularity across the world.