48 Crypto Exchanges Approved By Philippines Central Bank, 11 by Bangko Sentral ng Pilipinas (BSP)
Cryptoexchanges have been having a good run along with and powered by the Bitcoin bull run. Most regulators are approving or have plans to look into the operations of these firms. In the latest instance, the Philippines has approved the licenses of 48 cryptocurrency exchanges in the country.
This sort of comes as a surprise as earlier this month, Philippines central bank had warned over the risks of growing cryptocurrency use in the country. Benjamin Diokno, governor of the Bangko Sentral ng Pilipinas, as saying his institution would continue to address the use of cryptocurrencies, especially given the tech’s potential use in the funding of terrorism.
They had noticed the rise of cryptos in the country. Digital asses transactions in Philipines almost doubled from $189.18 million in 2017 to $390.37 million last year, based on data compiled by the central bank’s Technology Risk and Innovation Supervision Department.
Bangko Sentral ng Pilipinas (BSP), had commissioned 11 more crypto exchanges in its country to bring the number of crypto stakeholders working in the country to 48. The exchanges are registered with the central bank as remittance and transfer companies. The other 37 crypto exchange companies are licensed under the Cagayan Economic Zone Authority (CEZA) which is a state enterprise that is set to manage the development of the Cagayan Special Economic Zone And Freeport.
The central bank said:
“BSP-registered VC exchanges are now required to put in place adequate safeguards to address the risks associated with VCs such as basic controls on anti-money laundering and terrorist financing, technology risk management and consumer protection.”
CEZA Administrator and CEO Raul L. Lambino stated:
“We are making CEZA a sandbox for the development of these disruptive technologies, serving as a laboratory for interested parties to experiment on these new dimensions of business enterprise.”
Although the central bank had repeatedly said that they do not intend to endorse any cryptocurrency, since it is neither issued or guaranteed by a central bank or backed by a commodity, it is a breath of fresh air to see them take regulatory actions.