- The central bank of the Philippines recently announced new crypto regulations.
- The bank will now offer licenses to crypto businesses involved in trading and custody.
- Crypto firms will have to comply with local rules in order to receive the licenses and keep operating.
The central bank of the Philipines, known also as the Bangko Sentral ng Pilipinas, recently decided to regulate crypto financial services. More specifically, the bank is looking to provide licenses to regulatory-compliant crypto trading and custody companies.
Philippines Central Bank Announces Licenses for Crypto Firms
Regulating the crypto industry has been the goal of countries around the world for several years, now. However, while most still struggle to do this, it seems that the Southeast Asian region has found a way to achieve it.
Several countries in the region, including the Philippines as the most recent one, have seen clear-cut regulations for the crypto industry emerge. The country’s central bank, BSP, even enacted a new and broader licensing regime for the local crypto businesses.
The local news sources reported recently that crypto firms providing financial services will now have to be licensed by the central bank in order to continue their work. This includes anyone who offers custody solutions, crypto derivatives, or even crypto-to-crypto trading pairs.
The Philippines is Among the Leading Nations regarding Crypto Regulations
Of course, respecting and being in compliance with AML laws is mandatory, as well as with laws regarding Countering the Financing of Terrorism. This is why crypto trades that go beyond a certain threshold will require both the sending and receiving parties to confirm their identities.
The Philippines has been making rules for its crypto space for years now, and the country’s bank already regulated fiat-crypto trading years ago. Now, the BSP governor, Benjamin Diokno, stated that these new rules should eliminate any regulatory loopholes in the system.
Back in 2020, there were also reports that the BSP might be considering creating a CBDC. However, the country’s central bank then addressed the rumors, noting that it is not ready to start working on such a project. It will keep monitoring the scene, however.