Kevin Helms
A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of finance and cryptography.
Philippine regulator warns public against engaging with foreign crypto service providers – Regulation Bitcoin News
The Central Bank of the Philippines, the primary regulator of the country’s crypto sector, has warned investors against engaging with unregistered and foreign crypto service providers. They “may present additional challenges in enforcing legal recourse and consumer protection and redress mechanisms for local customers, among others,” the regulator said.
Philippine Central Bank’s Crypto Warnings
The Central Bank of the Philippines, Bangko Sentral ng Pilipinas (BSP), issued a public warning on Tuesday regarding unregistered and foreign crypto service providers. In the Philippines, the central bank is the primary regulator of the crypto sector.
The announcement states:
The Bangko Sentral ng Pilipinas (Bangko Sentral) strongly urges the public not to deal with virtual asset service providers (VASPs) that are either unregistered or domiciled abroad.
The Central Bank’s website shows that 19 VASPs were registered as of June.
In addition to the risk from price volatility associated with virtual assets (VAs), the central bank explained that VASPs based abroad “may present additional challenges in enforcing legal recourse and consumer protection and redress mechanisms for local customers, among others.”
Bangko Sentral emphasized:
VA trading is generally seen as high-risk activities that can result in large financial losses due to price fluctuations.
Furthermore, the central bank warned that the government does not guarantee protection against financial losses resulting from fluctuations in crypto prices. “The public should exercise caution, perform their own due diligence and always be aware of the risks before engaging in VA-related activities,” the regulator stressed.
The Bangko Sentral ng Pilipinas has urged the public to immediately report illegal activities facilitated through cryptocurrencies and/or crypto service providers to the central bank.
Last week, the central bank announced that it will stop accepting new VASP license applications for three years, starting on September 1. The regulator explained that it “aims to strike a balance between promoting innovation in the financial sector and ensuring that associated risks remain within manageable levels.”
What do you think of the Philippine Central Bank’s warnings? Let us know in the comments section below.
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