Fearing the risks and challenges it poses to the consumers, the Bangko Sentral ng Pilipinas (BSP) is warning the public against engagement with virtual asset service providers (VASPs) that are either unregistered or are coming from abroad.
Per BSP, VASPs that operate from abroad may present an extra challenge when it comes to consumer protection, enforcing legal recourse, as well as redress mechanisms for local customers, etc. That is, adding to the concern over price instability that’s already inherent to the trade since its inception.
Virtual asset (VA) refers to the electronic form of asset, similar to cryptocurrencies, that are designed to be traded or used as a means of payment.
Despite its global adoption, the topic around the use of digital currency remains a controversial topic. While not outlawed, the BSP does not guarantee its usage in the Philippines.
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That notion, however, does not rule out the fact that BSP officially recognizes virtual asset (VA) systems and their impact in the grand scheme of things, particularly on the topic of financial delivery services, according to the Circular 1108 series of 2021.
“… virtual asset (VA) systems have the potential to revolutionize the delivery of financial services by providing faster and more economical means to transfer funds, both domestic and international, and may further support financial inclusion.”