Philippine Central Bank Approves Two Crypto Exchange Applications

Philippine central bank approves two crypto exchange applications, thus approving the companies as platforms. This allows these firms to convert Philippine pesos into digital currencies legally.

9 July, AtoZ Markets The central bank of Philippines, Bangko Sentral ng Pilipinas (BSP), has reportedly approved applications that are filed by two new cryptocurrency exchanges.

Philippine Central Bank Approves Two Crypto Exchange Applications

According to the local media outlet, the Deputy Governor of the BSP Chuchi G. Fonacier has stated that Virtual Currency Philippines, Inc. and ETranss have been approved as platforms. This move enables the companies to convert Philippine pesos into digital currencies. The two new exchanges have joined already operating Rebittance, Inc., Betur, Inc., and BloomSolutions.

The central bank has also reportedly recognized digital currencies for their potential to offer cheaper and faster transactions. However, the authority is still cautious of the risks associated with crypto volatility, cybersecurity, and criminal involvement.

The central bank had previously considered whether the new exchanges must register as e-money issuers. This idea stemmed from the understanding that they offer wallet services to their clients. Mr. Fonacier has stated that internal consultations have advised against this requirement. He has explained:

“Now, we are refining the rules… If your business model has a portion making use of e-wallet, then there’s an additional requirement but not necessarily or automatically an e-money license.”

Cryptocurrency companies in the Cagayan Economic Zone

The Anti-Money Laundering Council in the Philippines will reportedly commence overseeing digital currency transactions. This will be done as a part of the country’s plans to clamp down on illegal money operations. Companies will need to report covered transactions as well as any suspicious transactions. 

As per some of the online reports, conversions from peso to cryptocurrencies have increased significantly over the past few years. During the first quarter, amounts accounted for around $36 million per month. 

Back in April, Philippine authorities have informed the public they plan to allow 10 Blockchain and cryptocurrencies companies to operate in the Cagayan Economic Zone. These companies are anticipated to provide employment for the local residents in exchange for tax breaks. The officials will also require the firms to invest a minimum of $1 million over two years and pay up to $100,000 in license fees.

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