Philippine Central Bank Licenses Crypto Custody And Trading Firms

The Philippine Central bank licenses crypto trading and custody firms, expanding its regulatory limits in the crypto space, aiming to include all crypto financial service providers so let’s read more in our latest cryptocurrency news.

The Bangko Sentral Philipinas or the Philippine Central bank licenses crypto custody and trading companies, following the emergence of clear crypto regulations across Southeast Asia. The bank enacted a broader licensing regime for crypto assets companies in the country. According to the Philippine Daily Inquirer, all of the crypto-financial service companies will have to get a license by the BSP.

The exchanges dealing with crypto trading pairs and custody platforms will have to obtain approval from the central bank. The expanded regulatory regime will also cover crypto derivatives platforms. All crypto companies in the country will have to comply with global financial practices like countering the finance of terrorism and Anti-money laundering. As a result, crypto transfers above a certain threshold will require identifying info for the originator but also for the beneficiary parties.

The governor or BSP Benjamin Diokno said that the bank expanded its regulatory regime because it has to keep up with the pace of development in the crypto space in the past three years. Back in 2017, the BSP issued rules for exchanges involved in fiat-crypto trading pairs. According to him, the new rules will remove any regulatory loophole in the crypto services ecosystem adding that the central bank is committed to striking a balance between the responsibilities and promotion of financial innovation.

Back in 2020, the bank started mulling the issuance of a central bank digital currency but the bank also came out to say that it’s not ready to create a sovereign digital currency but it is closely watching the crypto space. Southeast Asia continues being the global scene. Southeast Asia continues being a global hub for open finance and has positive dispositions to emerging technologies. Thailand and Singapore already have a sophisticated electronic payment system and as reported previously, Asia accounts for more than 50% of the global crypto trade.

As reported previously, the government of the Philippines and BCB Blockchain have signed a memorandum of agreement (MoA) under which one branch of the Philippines Department of Science and Technology (DOST) will support the development of local smart cities.