The Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, has officially authorized two new cryptocurrency exchanges to offer fiat-to-crypto trading services.
Approved Crypto Exchanges
The newly licensed platforms are:
- Virtual Currency Philippines, Inc.
- ETranss
Both exchanges are now certified to facilitate conversions between the Philippine peso (PHP) and virtual currencies. This approval enables them to collaborate with established entities like rebitda, Inc., Betur, Inc., and BloomSolutions to expand their service offerings.
Regulatory Stance on Cryptocurrencies
While the BSP acknowledges the benefits of digital currencies—such as faster transactions and lower costs—it remains cautious about associated risks, including:
- Market volatility
- Potential criminal activity
- Cybersecurity threats
Wallet Services and Licensing
The BSP debated whether exchanges providing wallet services should register as Electronic Money Issuers (EMIs). However, Deputy Governor Chuchi G. Fonacier confirmed that streamlined registration procedures were prioritized to encourage market growth:
"We are refining regulations... If your business model involves e-wallets, additional requirements apply, but an EMI license isn’t mandatory or automatically granted."
AML and Compliance Measures
The Anti-Money Laundering Council (AMLC) of the Philippines will intensify monitoring of crypto transactions to combat illicit financial flows. Licensed exchanges must:
- Report covered transactions
- Flag suspicious activities
Market Growth and Trends
- Transaction Volume: Registered exchanges handled ~$36 million monthly in Q1 2023.
- Adoption Surge: PHP-to-crypto trades have spiked in recent years.
Government Initiatives
In April 2023, the Philippines granted operational permits to 10 blockchain/crypto firms in the Cagayan Economic Zone, requiring:
- Minimum $1M investment within two years
- Up to $100K in licensing fees
- Local job creation for tax incentives
Legal Recognition of Crypto Assets
- November 2022: The Securities and Exchange Commission (SEC) proposed classifying certain digital currencies as securities.
- Earlier 2022: BSP recognized Bitcoin as a legal payment method.
FAQs
1. Can users deposit PHP on these new exchanges?
Yes—both approved platforms support PHP-to-crypto conversions.
2. Does the BSP regulate all crypto activities in the Philippines?
No. While it oversees exchanges, the SEC handles securities-like tokens, and the AMLC monitors AML compliance.
3. What safeguards exist for crypto investors?
Mandatory reporting of suspicious transactions, EMI-like requirements for wallet services, and strict licensing criteria.
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4. How does this approval impact the local economy?
Expect increased job opportunities, foreign investments, and technological innovation in blockchain.
5. Are unlicensed exchanges illegal?
Operating without BSP approval violates regulations; always verify an exchange’s licensing status.
👉 Learn about compliant crypto investments