What are the regulations that govern cryptocurrency transactions in the Philippines?
Crypto exchanges are governed by the Bangko Sentral ng Pilipinas (BSP) through BSP Circular No. 1108, which outlines them as Virtual Asset Service Providers (VASP).
According to the BSP, a VASP refers to an entity that offers services or engages in activities that provide a facility for the transfer or exchange of VA (virtual assets) such as cryptocurrency.
Exceptions to this rule occur when it involves digital units of exchange that are specifically for the use outlined by the issuer (e.g. gift checks) or the payment of virtual goods and services within an online game. These instances are not considered as VAs, and are subject to other regulations.
On the other hand, the Securities and Exchange Commission (SEC) requires that companies have to register with the SEC if they intend to do business in the Philippines, and are a crucial part of the process for initial registration. They also issue advisories when a platform does not have an authority to sell or offer securities to the public.
What are the criteria for a cryptocurrency exchange to count as a VASP?
According to the BSP, a crypto exchange has to have the following licenses in order to operate in the Philippines.
Is there a list of known cryptocurrency exchanges that are approved by either the BSP or the SEC?
Yes, there is a list for VASPs approved under the BSP. As of writing, the BSP has 14 entities classified under VASPs that can be accessed via this link.
Approved under the BSP are entities such as Maya Philippines and the Philippine Digital Asset Exchange (PDAX), one of the biggest crypto exchanges in the Philippines. Moreover, the SEC has warned against doing business with crypto exchanges that do not have a license to operate within Philippine borders.– Rappler.com
The information provided in the article above is for general knowledge and information. We’re always happy to hear from you! If you want to know how these regulations affect your business, CONSULT ACG or email us at consult@acg.ph.