- The central bank of the Philippines is the regulator of the crypto sector in the country.
- The central bank issued a warning that citizens are not insured against financial losses.
Recently, Bangko Sentral ng Pilipinas (BSP), the Philippines’ central bank, issued a public warning against unregistered and international crypto service providers. The central bank of the Philippines is the major regulator of the cryptocurrency industry in the country.
According to the release:
“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.”
Warning Against Financial Losses
As of the end of June, 19 VASPs were listed on the website of the central bank. The central bank said that foreign VASPs “may present additional challenges on enforcing legal recourse and consumer protection and redress mechanisms for local customers, among others,” which is in addition to the risk from price volatility connected with virtual assets (VAs).
According to the Bangko Sentral:
“VA dealings are generally considered as high-risk activities which may result in huge financial losses due to price swings.”
In addition, the central bank issued a warning that citizens are not insured against financial losses caused by swings in the value of cryptocurrencies. The authority cautioned that “The public should exercise caution, conduct their own due diligence, and always be mindful of the risks prior to engaging with VA-related activities” before participating in any VA-related activity.
The Philippines’ central bank, Bangko Sentral ng Pilipinas, has asked the public to report any suspicious activity involving cryptocurrencies and/or crypto service providers without delay. The central bank said last week that from September 1, it would not accept any new applications for VASP licenses for a period of three years. To promote innovation in the financial industry while keeping related risks within acceptable levels, the regulator said it “aims to strike a balance.”
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