The Philippines now has a crypto regulation structure. The new digital asset guideline is an upgrade on the 2017 amendment policy. All crypto will be treated as cross border payment.
The Philippines now has a regulatory structure for digital assets. The country is now listed among countries with a firm crypto regulation framework. The development did not come as a surprise. This was because the country looked into the implication of issuing Central Bank Digital Currency. Several financial authorities globally have started making effort to take a stand on digital assets.
The Philippines’ crypto regulation policy
Inquirer supplied information as regards the Philippines’ stand on cryptocurrencies. It stated that crypto-related activities will be placed within the reach of the Central Bank of Philippines. The crypto regulation policy is aimed at checkmating money laundering activities of financial investment and trading company The Bangko Sentral ng Pilipinas has declared its support for the crypto regulation structure. All crypto-related companies within the country’s boundary must comply with the new regulatory policy.
The country’s financial council has clarified areas subjected to the new policy. The areas subjected to the new policy includes the trading and transacting of digital currencies. It was suspected that digital assets are utilized for sponsoring terrorism. As a result the Government of Philippines seek to control the funding of terrorism and money laundering. They belive both will be achieved by the new crypto regulation framework.
Benjamin Diokno, the Philippines BSP Governor confirmed that the country has witnessed an increase in the use of digital assets over the last three years. He said the time has come when the nation should widen the scope of the former crypto regulations. Diokno stated such measures were necessary because the financial sector has grown and measures must be put in place to manage the risk expectations.
The last time the Philippine Government mentioned anything about the matter was 2017 after the last adjustment was made to the policy. This year the Central Bank of Philippines extended the last amendment policy to accommodate other areas of operation of digital assets. The 2017 amendment only included the transacting of cryptocurrencies to hard currency and vice versa. The new crypto regulation policy is an upgrade of the 2017 adjustment policy.
The Central Bank of Philippines stated that the rules are targeted at progressing the use of cryptocurrencies within the country’s jurisdiction. The Filipino financial regulatory body said they have no intention of adversely affecting the crypto industry but are careful of potential risks.
Digital assets will be treated cross border payment
Central Bank of Philippines’ officials affirmed that the new crypto regulation policy was structured in keeping with the best fintech industries practices. They stated that sufficient risk handling methods were included into the policies. They also added that highly reputed financial institutions like Financial Action Task Force have approved their Anti Money Laundering yardsticks.
The Officials said the crypto regulation policy will guarantee that all crypto-related activities are carried out within the confines of regulatory bodies. Crypto trades within the boundary of Philippines will be treated as remittance settlements. All crypto-related companies must adhere to the regulations. All transactions executed with digital currencies will be classed as cross border payment. The trading platforms must present information as regards the details of both the sender and the receiver of the funds.