The Bangko Sentral ng Pilipinas (BSP), the Philippines’ central bank, has given the thumbs up on applications filed by two new cryptocurrency exchanges.
According to a report on Business World, the Deputy Governor of the BSP, Chuchi G. Fonacier, disclosed that Virtual Currency Philippines, Inc. and Etranss have been licensed as platforms, which lets them convert Philippine pesos into virtual currencies. The two exchanges join current ones Rebittance, Inc., Betur, Inc., and BloomSolutions.
The central bank has already accepted digital currencies for their potential to offer quicker and inexpensive transactions but remains wary of the risks of crypto instability, criminal interest, and cybersecurity.
BSP had considered whether the said exchanges should register as e-money issuers because they provide wallet services for consumers. Fonacier declared that internal discussions advised against such a mandate in the interest of delivering a streamlined registration process for new companies.
Fonacier was quoted as saying: “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.”
The Anti-Money Laundering Council would closely monitor digital currency transactions as part of their intensive effort to clamp down on dirty money. Companies would be asked to document and report covered transactions as well as any transactions they see as skeptical.
The past few years have seen peso to digital currency conversions rise substantially. In the first quarter of this year, amounts reached an estimated $36 million per month covering transactions from two registered exchanges.
Back in April, the government declared it would allow 10 blockchain and crypto companies to function in the Cagayan Economic Zone. Firms are projected to generate employment for the local workforce in exchange for tax breaks. The Cagayan Economic Zone Authority would also mandate the firms to put in at least $1 million over the next two years and pony up to $100,000 in license charges.
