Bangko Sentral ng Pilipinas, the central bank of Philippines (BSP), issued a warning Tuesday about foreign and unregistered crypto service providers. The primary regulator for the crypto sector in the Philippines is the central bank.
It states that:
Bangko Sentral ng Pilipinas (Bangko Sentral), strongly urges people to avoid dealing with virtual asset service provider (VASPs), who are domiciled in the Philippines or not registered.
According to the central bank’s website, 19 VASPs were registered as of June.
The central bank stated that virtual assets (VAs) pose a risk of price volatility and that VASPs based overseas’may present additional difficulties in enforcing legal recourse, consumer protection and redress mechanism for local customers’.
The Bangko Sentral was highlighted:
Dealings in VA are usually considered high-risk and can lead to huge financial losses from price swings.
The central bank also warned that financial losses resulting from fluctuations in crypto prices cannot be guaranteed by the government. The regulator stressed that the public should be cautious and do their due diligence before engaging in VA-related activities.
Bangko Sentral ng Pilipinas urged the public not to report illegal activities through cryptocurrencies or crypto service providers to its central bank.
The central bank declared last week it would stop accepting new VASP license application for three years starting September 1. According to the regulator, it “aims to strike a balanced between promoting innovation within the financial sector and ensuring that associated risk remain within manageable levels.”