The Bangko Sentral ng Pilipinas announced that cryptocurrency activities from financial service providers are now subject to its rules and regulations.
BSP said that its Monetary Board had approved virtual asset service providers’ guidelines, covering new business activities and models. These are entities that use services like Bitcoin, blockchain, and crypto assets and digital currencies.
The guidelines mean that BSP licensing, regulatory expectations for money service business, anti-money laundering, countering the financing of terrorism and proliferation financing obligations will be imposed on the exchange between one or more forms of virtual assets; their transfer; and the safekeeping or administration of virtual assets or instruments enabling control over them.
As per BSP, there had been a spike in virtual currency use in the last three years. Hence, it’s just “high time” to widen the score of its existing regulations.
The BSP assures that the new guidelines will not block the financial innovations that virtual currencies bring, but they remain sensitive to the risks they may bring.
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These guidelines amend the virtual currency exchange regulations that were issued in 2017.
As per the Monetary Board, the new guidelines align with the fintech industry’s best practices.
“This will ensure that activities relating to virtual asset service providers are executed within an unbroken chain of regulated entities,” said Governor Benjamin Diokno of the BSP.